The managing director of the International Monetary Fund (IMF) Kristalina Georgieva said that IMF supports the Egyptian government’s aim to safeguard the significant gains made by its economic reform programme under the completed three-year Extended Fund Facility.
In a statement issued on Sunday, Georgieva said that Egypt’s economy, like other countries around the world, has been impacted by the COVID-19 outbreak, the related global recession, and the turmoil in financial markets.
She highlighted Egyptian President Abdel-Fattah El-Sisi’s and the government’s efforts in responding quickly and decisively through adopting measures aimed at curtailing the outbreak while providing support to affected people and businesses.
She noted the Central Bank of Egypt’s (CBE) measures to support the domestic economy, according to the statement.
“To support these efforts and contain the economic and financial impact of the pandemic, CBE and the government have requested financial assistance from the IMF under the Fund’s Rapid Financing Instrument (RFI) and a Stand-By Arrangement (SBA),” she said.
“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.”
She added that the IMF is working with the Egyptian government to support its strong set of macroeconomic policies through an SBA.
This comprehensive package of financial support, once 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, Georgieva said in the statement.
It would also help accelerate Egypt’s reform efforts that target supporting broad-based, job-rich and sustainable growth, according to the statement.
Prime Minister Mostafa Madbouly announced on Sunday that Egypt is seeking financial assistance from the IMF in the form of a one-year programme, to help offset the impacts of the pandemic.