A finalized agreement to disburse Egypt’s $3 billion loan is nearing completion as the International Monetary Fund (IMF) discusses key policy elements of economic reform with the country.

Discussions regarding the loan agreement, inked in December 2022 with the IMF, were temporarily halted as Egypt failed to fulfill its commitment to allow the Egyptian pound to respond to the market, opting to fix it against the dollar in March.

Ivanna Vladkova Hollar, the IMF mission chief for Egypt, has announced that both sides have agreed on a comprehensive policy package. This development could pave the way for a long-awaited review of the country’s economic reform program.

This development follows the conclusion of Thursday’s two-week visit to Cairo by the IMF chief. Discussions will continue virtually in the coming days to address additional support needed from the IMF and other bilateral and multilateral development partners, aiming to assist in closing Egypt’s increased financing gaps in the context of recent shocks.

“To this end, the IMF team and the Egyptian authorities have agreed on the main policy elements of the program. The authorities expressed a strong commitment to act promptly on all critical aspects of Egypt‘s economic reform program,” she stated.