Egypt has completed a repayment of 10 billion dollars to the International Monetary Fund in a significant move aimed at restoring financial confidence and demonstrating commitment to economic reforms according to senior government and IMF officials
The repayment which includes a combination of principal and interest payments is part of Egypt’s broader strategy to reduce external debt and attract new investment as the country continues to recover from inflation currency devaluation and the economic fallout of global crises
Finance Ministry sources confirmed that the funds were transferred earlier this week marking one of the largest single repayments Egypt has made to the IMF in recent years The move comes as Cairo works to meet obligations under a multi year loan program agreed with the IMF that included structural reforms currency flexibility and fiscal tightening
Egypt had previously borrowed over 20 billion dollars from the IMF since 2016 through various loan arrangements including support during the COVID 19 pandemic and following the global spike in food and fuel prices triggered by geopolitical tensions
Officials say the recent repayment sends a clear message to international lenders and investors that Egypt remains committed to honoring its debt and implementing reform measures despite economic pressures
The repayment was made possible in part by increased foreign currency inflows from tourism Suez Canal revenues remittances and a recent round of asset sales to Gulf investors which brought in billions in foreign direct investment
The Central Bank of Egypt also played a key role in stabilizing the exchange rate and supporting liquidity in the banking system measures that were welcomed by the IMF and other development partners
Analysts view the repayment as a positive signal for Egypt’s creditworthiness and a step toward regaining access to global capital markets at lower borrowing costs However they caution that challenges remain including high public debt inflation and the need for continued structural reform to boost private sector growth and job creation
In response to the repayment the IMF issued a statement praising Egypt’s commitment to fiscal discipline and cooperation with the Fund adding that continued engagement and reform progress will be essential for maintaining macroeconomic stability
As Egypt looks ahead officials say future economic plans will focus on attracting foreign investment expanding exports and managing public finances to avoid further reliance on international borrowing
