The key measures to be finalized include those related to reducing the state’s role in the economy and enhancing private sector participation, Kozack clarified.
Once the fifth and sixth reviews are completed in September, Egypt will be eligible to receive two tranches, worth $2.4 billion, out of the total $8 billion loan.
Kozack made these remarks on Thursday during a hybrid press briefing when asked by Ahram Online about the possible outcomes of Monday’s meeting.
The decision follows a recent IMF mission visit to Cairo, from 6 to 18 May, during which discussions with Egyptian authorities were described as productive.
However, Kozack affirmed that more work is needed to ensure the programme’s core objectives are met.
“The discussions suggest that more time is needed to finalize key policy measures, particularly related to the state’s role in the economy,” Kozack said during the press briefing.
“For that reason, the fifth and sixth reviews under the EFF will be combined and discussed together in the fall,” she added.
Moreover, Kozack asserted that Egypt has made notable progress, including a decline in inflation and an increase in foreign exchange reserves.
However, she emphasized the importance of deepening structural reforms to safeguard macroeconomic stability and strengthen the country’s resilience to external shocks.
Central to those reforms are the advancement of the state ownership policy and the asset diversification programme, key elements that aim to reduce the state's economic footprint and create space for private-sector-led growth.
“These steps are critical to leveling the playing field and improving the business environment,” she noted.
Kozack further affirmed the IMF’s strong commitment to Egypt’s economic reform agenda.
She clarified that discussions are ongoing regarding the country’s financing needs and the potential size of the disbursement under the combined review, saying it would be premature to speculate on the final figures at this stage.
Additionally, she stated that the first review of the Resilience and Sustainability Facility (RSF) financing, which was approved earlier this year, will be aligned with the sixth review of the EFF programme.
The IMF’s EFF arrangement with Egypt was initially approved in December 2022 and expanded in 2024 to a total of $8 billion.
The programme aims to restore macroeconomic stability, advance structural reforms, and enhance social protection in the face of external economic pressures.
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