Four Arab countries are continuing negotiations with the International Monetary Fund to reach economic reform programs accompanied by funds to help their economies face various risks.

The IMF has always been the most prominent option for many Arab economies, in light of the concerns expressed by other international financial institutions to provide financing to them, without obtaining the trust of the Fund.

Egypt

Last March, the International Monetary Fund announced in a statement that Egypt had requested its assistance for an economic reform program accompanied by financing, the value of which has not been announced until today.

Indeed, Egypt and the Fund began consultations to reach advanced discussions, but until today, no agreement has been officially announced, even though Cairo implemented a package of reforms, with the forefront of moving the exchange rate slightly.

And last week, Egyptian Prime Minister Mostafa Madbouly said that the government is in the stage of final agreements on new financing from the International Monetary Fund.

Egypt is suffering from an escalating economic crisis, caused mainly by the consequences of the Russian-Ukrainian war, the exit of hot money from Egyptian debt instruments, and a sharp rise in the cost of imports that exceeded 90% over the usual months.

While the loan amount was not officially announced, Goldman Sachs expected that Egypt would resort to borrowing $15 billion from the International Monetary Fund.

In its monthly report on the Egyptian economy last August, the bank said that Egypt needs to secure this amount to meet financing requirements over the next three years.

Tunisia

More than 13 months ago, Tunisia began informal negotiations with the Fund to enter into a new economic reform program, leading to financing of no more than $4 billion.

In early July, official negotiations began between the International Monetary Fund and Tunisia, seeking to reach an agreement to obtain a $4 billion loan to complete its 2022 budget.

The Tunisian government's reform program includes fiscal and tax reforms aimed at boosting growth and investment and improving the business climate, including restructuring public institutions and controlling the wages bloc.

Tunisia is suffering from an economic and financial crisis, exacerbated by the repercussions of the Corona pandemic and the war in Ukraine, in addition to the political instability that the country has experienced since President Kais Saied began imposing exceptional measures on July 25, 2021.

On Monday, the opposition accused President Qais Saeed of demonstrating the country's sovereignty to the IMF, amid a near-total collapse of the production system in more than one field and sector, and a decline in savings, and thus the absence of investment.

Lebanon

Last April, Lebanon and the Fund initially reached a comprehensive economic and financial reform program, paving the way for the country to obtain a $3 billion loan, after initial informal talks that lasted more than two years.

But even today, the fund is still asking for more reforms, most recently last Thursday, when it told Lebanon that its bank secrecy law had major shortcomings.

The revised bank secrecy law, passed last July, is a watered-down version of the original draft, raising fears that the IMF would not consider it effective enough to be a genuine reform measure.

Last Wednesday, Lebanese President Michel Aoun refused to sign the bill for approval and instead returned it to Parliament for further amendments.

Sudan

In June 2021, the International Monetary Fund approved a $2.5 billion loan to Sudan and concluded a landmark agreement with the World Bank to provide $50 billion in debt relief.

However, the implementation of the agreement was not fully implemented, after events in the country in October 2021, which included the detention of Prime Minister Abdullah Hamdok at the time, for a short period by the Sudanese army.

Since then until today, the Fund's agreement with Sudan has not proceeded as planned, pending the return of full political stability in the country, which is facing mounting economic troubles.