Egypt to receive $368 mln loan from AMF to boost country’s financial position amid COVID-19

Doaa A.Moneim , Saturday 29 Jan 2022

The Arab Monetary Fund (AMF) will provide Egypt with $368 million loan to strengthen the country’s financial position and meet emergency needs amid challenges caused by COVID-19, the fund announced on Saturday.

File Photo: The Arab Monetary Fund (AMF) building. Ahram

An agreement on the loan was inked on 26 January between Governor of Central Bank of Egypt Tarek Amer and Director General Chairman of the Board of Executive Directors of the AMF Abdulrahman A. Al Hamidy.

In this respect, the AMF said that it follows closely the developments in Egypt’s economy and the challenges it faces due to the current circumstances, and works through a fruitful partnership with the Egyptian government to help the country contain the different challenges in the most effective way.

The fund noted that it is keen to support the efforts of its member countries to implement economic, financial and structural reforms, in the face of the ongoing challenges caused by COVID-19, through a number of means, including financing the needs of the balance of payments and public budgets, as well as financing trade through its affiliate the Arab Trade Financing Program.

Additionally, promoting policy dialogue and consultation on economic, financial and development issues via various forums and activities is one of the Fund’s roles besides providing technical advice to member countries in the field of economic, fiscal and financial policies, and providing training for government officials in member countries through its Institute for Training and Capacity Building.

The AMF is currently studying financing requests from other member countries, and is processing the requests through expedited procedures, through which the borrowing member countries can meet financing needs and enhance their financial positions to face various challenges.

In August 2021, the AMF handed Egypt the second tranche of the Fund’s loan agreed in July 2020 as part of a structural adjustment facility in the public finance sector.

The $282 million tranche of the $639 million loan is meant to avail resources to help Egypt implement economic and financial reforms and strengthen its resilience to various challenges amid the COVID-19 pandemic.

In November 2012, the AMF’ Arab Economic Prospects report projected Egypt’s real GDP growth to reach 5.4 percent in 2022 on condition of the global economy’s recovery, which would strengthen tourism and the external demand in the country.

The report expects Egypt’s economic growth to continue its robust pace despite the COVID-19 crisis.

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