A team from the IMF will likely head our way in the second half of the month for the fifth and sixth reviews of the country’s USD 8 bn loan program, a senior government source told EnterpriseAM.

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REMEMBER- The Fund decided in July to combine the fifth and sixth reviews to give the state more time to make progress on withdrawing itself from the economy and the broader reform agenda. Finance Minister Ahmed Kouchouk said that the combined review could be concluded in September or October, unlocking a USD 2.5 bn tranche. If all goes according to plan, the program is set to expire in October 2026.

The steps taken: Over the past few months, the Madbouly government has taken several steps in line with its reform agenda with the IMF in hopes of successfully completing the two reviews and unlocking the long-awaited tranche.

#1- Committing to the cap on our unified treasury account: The Finance Ministry has committed to the IMF’s EGP 238 bn cap on its unified treasury account, according to a government document seen by EnterpriseAM. Any amount beyond the cap incurs an additional 4% interest payment to the CBE. The move has pushed the government to accept higher yields when it comes to local debt instruments.

SOUND SMART- The unified treasury account — AKA treasury single account — is a tool that consolidates all government funds and transactions. It is a tool pushed by the IMF for effective money management in governments — “in countries with fragmented government banking arrangements, the establishment of a TSA should receive priority in the public financial management reform agenda.” You can read more about the tool on the Fund’s website.

#2- What about privatization? Sluggish progress on privatization has long been criticized by the fund. To that end, officials plan to make significant moves on that front, our source said, adding that the resumption of the privatization program is contingent on a package of IPO incentives currently brewing.

What incentives? The Madbouly government is looking into offering fresh incentives for large-scale IPOs on the EGX in a bid to boost activity on the market, with a full tax exemption on IPO proceeds as a main priority. The package was previously said to be finalized by the end of August.

ICYMI- The privatization program is being reworked to focus on minority stake sales via theEGX, with the government preparing to list 10-40% stakes in several state-owned companies. Strategic sales will remain part of the plan, but on a smaller scale and limited to select industries. The state has also cut its privatization target for the fiscal year, now aiming to raise around USD 3 bn by June, down from a previous goal of USD 5–6 bn.

We’ll have more details soon: Kouchouk will hold a joint presser alongside officials from the Financial Regulatory Authority and the Egyptian Exchange in the coming days to unveil the details of a new package of incentives, the minister said earlier this week.

#3- Securing FX: Recent efforts have also focused on attracting more investments, our source said, adding that the primary goals are securing steady FX inflows and increasing employment rates. Egypt recorded its highest-ever monthly USD inflows in July, reaching USD 8.5 bn, Prime Minister Moustafa Madbouly said last week. These inflows, which excluded hot money, came from all state sectors, including a historic surge in remittances.

What is the IMF looking for? The IMF's primary goal is to ensure Egypt's financial needs are met and that key economic indicators are improving. We’re on the right track, our source said, pointing to a jump in foreign investments, along with better rates of growth and employment. The IMF expects Egypt’s external financing needs to reach USD 30.4 bn during this fiscal year, before declining to USD 27.5 bn in FY 2026-2027.

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