Egypt Daily News – The International Monetary Fund (IMF) has projected a significant decrease in Egypt’s external financing gap for the upcoming fiscal year 2025–2026, estimating it at $5.8 billion, nearly half the gap of $11.4 billion recorded for the previous fiscal year, 2024–2025.
These estimates exclude expected support from the IMF itself, according to a recent report published by the Fund.
The IMF emphasized that the Egyptian government has successfully secured confirmed financial commitments sufficient to cover its external financing needs over the next 12 months, through to January 2026.
Among the notable sources of funding, Egypt received €1 billion from the European Union in December 2024. This disbursement forms part of a broader €5 billion financial support package aimed at assisting the country’s economic stabilization efforts.
To further bolster Egypt’s foreign currency reserves, the report also highlighted a commitment by Gulf countries not to withdraw $18.3 billion in official deposits held at the Central Bank of Egypt until the end of the IMF’s Extended Fund Facility program, scheduled to conclude in October 2026.
Under the terms of the agreement, any use of these deposits to acquire Egyptian assets must ensure that the proceeds remain within the country’s official reserves.
The IMF expects Egypt to generate $3 billion from its state asset sale program during the 2025–2026 fiscal year, and $2.1 billion in 2026–2027. However, the Fund noted that the proceeds from asset sales during the 2023–2024 fiscal year amounted to just $2 billion, falling short of the program’s agreed targets.
