The International Monetary Fund (IMF) revealed that the Egyptian government agencies will reduce their debts to the Central Bank of Egypt (CBE) by EGP 100 billion every fiscal year.

According to the IMF's Egyptian economy review report, the government agencies have already paid claims to the CBE amounting to EGP 150 billion by the end of July.

The report revealed that arrears owed to international oil companies reached $5 billion.

However, the Petroleum Authority has developed a plan to reduce arrears to between $3.5 and $3.8 billion by the end of FY2023/2024.

Regarding debt service, the report highlighted an increase in payments, amounting to approximately 9% of the gross domestic product in the initial ten months of FY2023/2024.

This equated to around 51% of Egypt's total expenditure and roughly 84% of its overall revenues.

The IMF pointed to the Ras El-Hekma deal's role in reducing overall financing needs and debt.

The report expected also that the deal would contribute to increasing Egypt's foreign exchange reserves to reach $47.2 billion by the end of the current fiscal year.

Recently, the 4th review of the International Monetary Fund’s (IMF) $8 billion program will reportedly be held in October, according to sources speaking to regional media.

Sources speaking to Al Arabiya Business shared that the IMF’s mission will be visiting in October rather than September.