Egypt is considering seeking up to $3 billion in emergency financing from the International Monetary Fund, as the economic fallout from the US-Israeli war on Iran strains the country’s external finances, two officials from the Cabinet and the Ministry of Finance told Al Manassa.
The potential loan, estimated at between $1.5 billion and $3 billion, is being weighed as foreign currency inflows come under pressure, the officials said, citing market and trade disruptions linked to the conflict.
The officials attributed the strain to an exit of foreign portfolio investments—often referred to as “hot money”—from Egypt’s domestic debt market amid heightened regional tensions, alongside a sharp increase in energy costs due to disrupted shipping through the Strait of Hormuz.
The IMF is already assessing the broader global impact of the war involving Iran and whether member states may require additional support. Bloomberg reported last month that the fund was reviewing potential needs, while Managing Director Kristalina Georgieva said this month that requests for emergency financing had already been received from several countries.
Egypt is currently under an IMF-backed reform program that began in 2022 and is scheduled to conclude in 2026. The Fund has set mid-June for the seventh review of the program, which would unlock a $1.65 billion disbursement, including $136 million under the Resilience and Sustainability Facility. An eighth and final review is scheduled for mid-November, tied to a similar tranche, contingent on the implementation of agreed reforms.
The IMF has pressed Egypt to accelerate the state’s exit from economic activities and expand the role of the private sector as conditions for completing the program, one Cabinet official said, noting continued concerns over state involvement in projects without sufficient private investor participation.
“The IMF has also called for the swift execution of the government’s privatization program before the end of May, ahead of the seventh and eighth program reviews,” the official added.
In line with those commitments, Egypt’s Financial Regulatory Authority announced on Wednesday the temporary listing of six state-owned companies on the stock exchange, in preparation for offering stakes to investors.
Public debate last year over Egypt’s “National Narrative” included sharp criticism of the IMF program, with some calling for a more independent economic path as the current arrangement nears its end in 2026.
