Changes to our loan program commitments may be in the cards: “We have been very open to adjust the Egyptian program or any other program to what is best to serve people,” International Monetary Fund boss Kristalina Georgieva said in a press briefing . Georgieva’s comments followed how countries in the region — including Egypt — are seeing “growth projections revised significantly downward,” with regional conflict being a “big reason for this downgrade.”

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Remember: After President Abdel Fattah El Sisi made headlines for stating that Egypt mightreevaluate itsagreement with the IMF in light of economic pressures the nation is enduring as the country carries out reforms as part of the loan agreement, Prime Minister Madbouly confirmed that the government is currently reviewing the timeline and reforms put forward by the Fund. Madbouly highlighted the direct impact that the war on Gaza and the subsequent decline in Suez Canal revenues has had on state revenues as justification for the review.

It doesn’t look like we’ll be getting fresh funds: Although the fund signaled its openness to negotiate timelines and targets, the Fund’s Middle East and Central Asia head Jihad Azour said in a separate press briefing that additional funds were unlikely. “I think the macroeconomic conditions today are showing that the program as it’s designed and its finance is still appropriate,” Azour said in response to a question.

This doesn’t mean that we’re off the hook: In contrast to the IMF’s talk of being open to changing some of the terms of the loan agreement, Georgieva reiterated that “Egypt is better served by undertaking reforms sooner rather than later.” She also warned the country not to repeat previous mistakes, telling the audience “there has been some delay in the past of actions, and that makes the cost higher. And that cost ultimately falls on the shoulders of people.”

Tough but necessary decisions still needed, says the IMF: “We are not going to do our job for the country and for the people of the country if we pretend that action that needs to be taken can be foregone, because the only thing that happens is the price of this action goes up,” Georgieva said.

We should hear more news on this front with Georgieva set to land in Egypt early next month: Georgieva announced she “will go to Egypt in about ten days exactly for this reason” on Thursday. “I would like to see for myself what is happening in the country. I want to hear what the views are. And we will look into the support of the Fund from the perspective of what is best for the country,” she added.

Georgieva isn’t the only IMF official set to be heading to Egypt soon: The Fund will start its fourth review of our loan program soon — Madbouly last week said that the review will start following the end of the International Monetary Fund and World Bank Group Annual Meetings, which wrapped yesterday. The review will unlock USD 1.3 bn in funds — the biggest of the four tranches to date.

The IMF’s plan to cut surcharges could save us a lot more than originally thought: The IMF’s decision to cut surcharges by an average of 36% starting next month could save Egypt USD 800 mn by 2030, Georgieva told Asharq Business. A government source previously told EnterprieseAM that the decision could save Egypt between USD 300-400 mn.

The international press also took note: Bloomberg | Reuters.

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