IMF praises Egypt's measures confronting COVID-19, comments on new package request

CAIRO - 27 April 2020: “Like many countries around the world, Egypt’s economy has been impacted by the COVID-19 outbreak, the related global recession, and financial markets turmoil. President El Sisi and his Government have responded quickly and decisively with measures to limit its spread and provide support to affected people and businesses,” Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva commented after Egypt announced requesting new fund from the IMF.

Georgieva added that the Central Bank of Egypt has also implemented timely measures to support the domestic economy.

“To support these efforts and contain the economic and financial impact of the pandemic, the Central Bank and the Government of Egypt have requested financial assistance from the IMF under the Fund’s Rapid Financing Instrument (RFI) and a Stand-By Arrangement (SBA),” she referred, noting that the emergency financing under the RFI will allow the government to address any immediate balance of payments needs and support the most affected sectors and vulnerable groups of people. I expect the request for the RFI to be presented to the IMF’s Executive Board within the next few weeks.

Georgieva said that her staff is also working with the Egyptian government to support its strong set of macroeconomic policies through an SBA.

“We fully support the government’s aim to safeguard the significant gains made under the successfully completed three-year Extended Fund Facility last year,” she said.

She clarified that this comprehensive package of financial support, if approved, would help strengthen confidence in the Egyptian economy, make further progress to protect the most vulnerable and provide the basis for a strong economic recovery. It would also help accelerate Egypt’s reform efforts aimed to support broad-based, job-rich and sustainable growth.

Prime Minister Mostafa Madbouli announced Sunday that the Egyptian government and the Central Bank have requested a financial package from the International Monetary Fund (IMF), according to the Rapid Funding Tool program (RFI) and the SBA program.

This package is to enhance the state’s capabilities to face the new COVID-19 virus crisis, in a proactive step based on the successful implementation of the economic reform program; to maintain the continuing gains and positive results achieved by the Egyptian economy, in light of the exceptional circumstances experienced by all countries of the world and developments in global conditions.

Egypt requests new financial package from IMF for 1 year

CAIRO - 26 April 2020: The Egyptian government and the Central Bank have requested a financial package from the International Monetary Fund (IMF), according to the Rapid Funding Tool program (RFI) and the SBA program, Prime Minister Mostafa Madbouli announced Sunday.