IMF projects $3B in USD Inflows from Egypt’s asset sales during FY2025/26
Updated 7/16/2025 8:17:00 AM
Arab Finance: The International Monetary Fund (IMF) expected that Egyptian authorities would attract nearly $3 billion in dollar inflows from asset sales during the current fiscal year (FY) 2025/2026, according to the IMF’s latest report.
The state is projected to attract approximately $2.1 billion from asset sales in FY 2026/2027, which is higher than the estimates included in the third review, to offset the deficit in fiscal years 2023/2024 and 2024/2025.
Meanwhile, the projected dollar inflows from asset sales stand at $600 million for FY 2024/2025.
The divestment strategy is expected to offer external financing; however, with a more backloaded profile, the report noted.
In FY 2023/2024, divestment-related to program financing hit $2 billion, which is lower than programmed.
The authorities secured a financing commitment of about $3 billion in the form of new foreign direct investment (FDI) inflows this FY.
This will help maintain the expected contribution of non-debt-creating financing flows in FY 2024/2025 to offset the divestment shortfall.
The authorities also affirmed that assurances are still at $18.3 billion of deposits from key GCC creditors at the Central Bank of Egypt (CBE), and will not be withdrawn until after the expiration of the Extended Fund Facility (EFF) arrangement in October 2026.
Yet, these assurances can only be used for buying equities, with the FX proceeds of their sales expected to stay in place at the CBE's foreign reserve assets.
Earlier this July, Reuters reported that the IMF could merge its fifth and sixth reviews of Egypt's $8 billion support program, which may delay the disbursement of $1.2 billion by half a year.
The possible delay is attributed to Egypt's slow progress on structural reforms, which are the main guarantee of the facility, including the divestment of state assets.
In March, the IMF completed its fourth review of Egypt’s economic reform program under the Extended Fund Facility (EFF), unlocking access to $1.2 billion.
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