The IMF Board of Directors agreed to grant Egypt an emergency loan of $2.77 billion to help it dealing with the effects of the Covid-19 epidemic.
In this regard, First Deputy CEO Jeffrey Okamoto saw that "Egypt witnessed a remarkable change before the shock of Covid-19 in the framework of an economic reform program supported by the Fund, but this progress is now threatened," saying that "the loan will help finance the targeted and temporary spending with the aim of containing the epidemic and mitigate its economic impact."
He also warned that Egypt would need additional rapid support from bilateral and multilateral creditors in order to bridge the remaining balance of payments gap, reduce the burden of settlements and maintain the macroeconomic stability that Egypt has endeavored to achieve.
The emergency loan comes from the Fund's Rapid Funding Tool, which has been strengthened to quickly obtain assistance for developing countries most vulnerable to the economic impacts of the epidemic. Egypt began to gradually reopen its activities after the government eased a strict curfew during the month of Ramadan in an attempt to advance the largest economy in North Africa.
Source (Al-Arabiya.net website, Edited)
