Wednesday 23 December 2020
Last update on Wednesday, December 23, 2020 At 6:33 PM
As it barely emerges from a string of stringent reforms that have put its economy back on track, Egypt has had to turn to the IMF once again to tackle covid-19. A confirmation agreement has been signed for this purpose.
The International Monetary Fund (IMF) approved the $ 1.6 billion disbursement to Egypt. This is what the institution announced in a statement released on December 18, 2020.
This is a new tranche of funding provided under a standby agreement of $ 5.2 billion, approved on June 26 by the Bretton Woods institution in favor of Cairo.
Running over 12 months, it aims to support the Egyptian government’s economic reform agenda during the covid-19 crisis. The latter disrupted the economy of the land of the Pharaohs barely emerging from a crisis that forced it to adopt a series of very strict reforms under the aegis of the IMF.
“The Egyptian authorities have handled the pandemic and related disruptions in economic activity well. The proactive measures taken to meet health and social needs and to support the sectors most directly affected by the crisis have helped to mitigate the economic and human impact, ”said Antoinette Sayeh, Deputy Managing Director of the IMF.
“The government’s structural reform program is ambitious enough. It is essential to continue it in order to foster stronger, greener and more inclusive growth, driven by the private sector, ”she added.
With this new disbursement, Egypt will have received a total of $ 3.6 billion under the Standby Agreement. According to IMF projections, it will be among the few countries with a positive growth rate this year.
Source Ecofin Agency
