Egypt may soon receive additional funding from the International Monetary Fund (IMF), according to spokesperson Julie Kozack. The IMF is currently reviewing a new financing program, which could help the country manage its rising economic challenges.

Cairo is already benefiting from an $8 billion financing agreement with the IMF, which was expanded in 2022 to address economic pressures, particularly those linked to the conflict in Gaza. While the IMF initially tied the expanded funding to the economic impacts of regional instability, Kozack clarified that the current discussions are not related to recent developments in Gaza, including the potential costs of accommodating refugees.

As part of the ongoing agreement, Egypt expects to receive $1.2 billion following the IMF’s fourth program review, completed in December. Kozack confirmed that the IMF has worked with Egyptian authorities to adjust fiscal policies, aiming to create room for critical social programs targeting vulnerable groups and the middle class while maintaining debt sustainability.

However, IMF-driven reforms have strained the population, with subsidy cuts and currency devaluation pushing living costs higher. To ease these pressures, the Egyptian government has delayed some planned reforms, such as fuel price liberalization.

Alongside the current program, the IMF is exploring a new financing avenue under the Resilience and Sustainability Fund. Though Kozack did not specify the potential amount, she noted that this funding would come with additional policy reforms.

The IMF’s support for Egypt has been key in securing over $40 billion in financing and investment commitments from countries like the UAE and European nations. The IMF’s executive board is expected to finalize decisions on both the current and new financing programs in the coming weeks.