U.S. welcomes IMF emergency financial assistance approval for Egypt

CAIRO – 13 May 2020: U.S. Ambassador to Cairo Jonathan Cohen on Wednesday welcomed the International Monetary Fund (IMF)'s approval of almost $2.8 billion Rapid Financing Instrument to support Egypt’s balance of payment needs during this worldwide period of economic uncertainty.

"We welcome the International Monetary Fund (IMF)'s approval of almost $2.8 billion Rapid Financing Instrument to support Egypt’s balance of payment needs during this worldwide period of economic uncertainty. The United States supported Egypt's request and will continue to partner with Egypt to support the country's economic development.” - Ambassador Jonathan Cohen said in a statement.

On May 11, The Executive Board of the International Monetary Fund (IMF) approved Egypt's financial package request to enhance the state’s capabilities to face the new COVID-19 virus crisis.

“The Executive Board of the International Monetary Fund (IMF) approved Egypt’s request for emergency financial assistance of SDR 2,037.1 million (US$ 2.772 billion, 100 percent of quota) under the Rapid Financing Instrument (RFI) to meet the urgent balance of payments needs stemming from the outbreak of the COVID-19 pandemic. Purchase under the RFI entails exceptional access due to outstanding credit under the previous extended arrangement under the Extended Fund Facility.” IMF stated in the statement.

It added that: ”Egypt achieved a remarkable turnaround prior to the COVID-19 shock, carrying out a successful economic reform program supported by the IMF’s Extended Fund Facility (EFF) to correct large external and domestic imbalances. The pandemic and global shock pose an immediate and severe economic disruption that could negatively impact Egypt’s hard-won macroeconomic stability if not addressed. The authorities have launched a comprehensive package to contain the economic impact of the COVID-19 shock. The RFI will help alleviate some of the most pressing financing needs, including for spending on health, social protection, and supporting the most impacted sectors and vulnerable groups.”

IMF statement on Egypt's emergency financial assistance approval

Washington/CAIRO - 11 May 2020: The Executive Board of the International Monetary Fund (IMF) approved Monday Egypt's financial package request to enhance the state's capabilities to face the new COVID-19 virus crisis.