An IMF delegation is set to land in Egypt today — and there’s hope we’ve made enough progress to get the final sign-off on our combined fifth and sixth reviews, three government sources told EnterpriseAM.

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In case you forgot, the International Monetary Fund decided in July to postpone our fifthreview of the country’s USD 8 bn extended fund facility program and combine it with its sixth review, arguing that “more time is needed” to make progress on the state’s withdrawal from the economy and the broader reform agenda.

Now nearly five months on, the country has made significant progress in curbing inflation, down from a 16.8% headline figure when the Fund decided to delay to a more manageable 12.5%. Another key priority of the IMF was seeing progress on foreign reserves, which passed the USD 50 bn mark in October, up from the USD 48.5 bn figure available when the Fund delayed the review back in July. Also working in our favor is GDP growth hitting 5.3% in the first quarter of the fiscal year, movement once again on the government’s privatization push, and incoming FDI inflows from projects like Qatar’s USD 29.7 bn Alam El Roum project, our sources told us.

The 1Q FY 2025-26 growth figure is the latest indicator of the economic reform program’s success, our sources said. The figure was supported by ongoing economic and structural reforms, which have contributed to bolstering the real economy, crowding in private-sector activity, and steering the growth model toward tradable, high-productivity sectors.

What’s next? The visiting delegation is expected to be busy meeting with officials until 12 December, which policymakers hope will lead to a staff-level agreement between the two sides ahead of the reviews and tranches being given the green light from the IMF Executive Board later down the line. The two reviews are expected to see USD 2.7 bn channeled into state coffers, in addition to the first tranche from the Resilience and Sustainability Facility, which could add a further USD 274 mn in climate financing.

What the Fund will be looking for: Sources indicate that the IMF will be closely following the upcoming inflation report, which will be released during the mission’s time in Egypt.

And there’s more to look forward to, with the government in negotiations to convert Saudi and Kuwaiti deposits in the CBE into investments, strengthening foreign reserves. Kuwait plans to partly Fund a planned USD 3 bn investment package by converting deposits it holds in Egypt’s central bank, while the Saudi side plans to convert some of its USD 10.3 bn in outstanding deposits into new investments in real estate and other sectors. Our sources expect to see progress from the Kuwaiti side on the matter in 1Q 2026.

Discussions will also cover the public debt strategy prior to its late-December launch, the National Narrative for Economic Development, and the second package of tax facilities, sources confirmed.

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