CAIRO, March 12 (Reuters) – The International Monetary Fund (IMF) has approved a $1.2 billion disbursement for Egypt, marking the completion of the fourth review of the country’s economic reform program. This approval is part of Egypt’s ongoing efforts to stabilize its economy and address mounting financial challenges.
The IMF’s executive board approved the release of funds on Monday, allowing Egyptian authorities to access the money immediately. Additionally, Egypt secured an arrangement under the IMF’s Resilience and Sustainability Facility, granting access to an additional $1.3 billion to support long-term economic resilience.
Egypt has been grappling with severe inflation and rising living costs, including hikes in fuel prices, public transportation fares, and a devaluation of the Egyptian pound. These economic pressures have significantly impacted daily life for Egyptians, although recent measures such as wage increases are aimed at providing some relief.
Finance Minister Ahmed Kouchouk announced a rise in the minimum monthly wage for public sector workers to EGP 7,000 ($138) starting in July, up from EGP 6,000 ($118.58). This wage adjustment follows a similar increase in the private sector, effective March 1. These steps are part of Egypt’s broader social protection initiative, aimed at alleviating financial stress for citizens.
In addition to these measures, Egypt implemented fuel price hikes in October, increasing the cost of diesel by 17% and 92-octane gasoline by 11%. These adjustments have significantly impacted the prices of goods and services, further straining the public.
This latest IMF disbursement follows Egypt’s agreement with the IMF last spring to secure a larger bailout package, boosting financial aid to $8 billion. The price hikes were implemented to meet IMF conditions for further funding, underscoring Egypt’s reliance on international assistance to address its economic crisis.
