RIYADH: The International Monetary Fund (IMF) approved a 12-month stand-by arrangement for Egypt, with access equivalent to 3.76 billion Special Drawing Rights (SDR) equivalent to about $5.2 billion.
After a strong track record of successfully completing a home-grown economic reform program supported by the IMF’s Extended Fund Facility in 2016-2019, Egypt was one of the fastest growing emerging markets prior to the COVID-19 outbreak, the IMF said in a statement on Wednesday.
The new arrangement aims to help Egypt cope with challenges posed by the COVID-19 pandemic by providing IMF resources to meet Egypt’s balance of payments needs and to finance the budget deficit. It will be allowed to withdraw $1.7bn after its reform program has been reviewed.
“Over the past few years, Egypt saw strong growth, falling unemployment, moderate inflation, buildup of strong reserve buffers, and significant reduction in public debt,” said Deputy Managing Director and Acting Chair Antoinette Sayeh.
Sayeh emphasized Egypt’s commitment to broaden and deepen structural reforms, and refocus to address the economic health crisis during the pandemic.