The International Monetary Fund (IMF) reaffirmed its strong support for Egypt’s ongoing economic reforms, which are designed to tackle the nation’s pressing challenges, including high inflation and foreign currency shortages. During a briefing in Washington, D.C. on Thursday, IMF Communications Director Julie Kozack underscored Egypt’s steadfast commitment to implementing key reforms aimed at maintaining macroeconomic stability, despite the external pressures stemming from regional tensions.

Kozack’s comments followed a recent visit by an IMF mission to Egypt, where significant progress was made in discussions related to the fourth review of Egypt’s 46-month loan program. The loan program, initially approved in 2022, was later expanded by $8 billion earlier this year in response to the country’s deepening economic crisis. The program is focused on addressing critical issues such as inflation, external debt, and foreign currency shortages. A successful completion of the fourth review would unlock an additional $1.2 billion in financing for Egypt, providing much-needed liquidity to stabilize its economy.
In addition to supporting Egypt’s efforts, the IMF also addressed the economic impact of the severe flooding that recently hit Spain. While the floods caused significant damage to local communities, particularly in areas near rivers and coastal regions, Kozack pointed out that the broader economic impact on Spain was relatively limited. Key infrastructure, including transport networks and industrial operations, experienced only minor disruptions. The IMF plans to include a more detailed analysis of the situation in its upcoming World Economic Outlook update, slated for January.

Meanwhile, the IMF also highlighted promising signs of stabilization in Argentina’s economy following a difficult year marked by recession and inflation. According to Kozack, Argentina’s economic stabilization program is showing progress, with inflation rates beginning to decline, fiscal surpluses emerging, and foreign reserves improving. These developments suggest that Argentina may be on the path to economic recovery. The IMF remains committed to supporting Argentina’s efforts to address the country’s $44 billion loan with the Fund and ensuring long-term stability for the nation’s economy.
These developments reflect the IMF’s ongoing efforts to assist its member countries as they navigate complex economic challenges, including inflation, external debt, and the impact of natural disasters. The Fund continues to work closely with Egypt, Spain, and Argentina to help implement policies that promote stability and long-term growth in their respective economies.