The International Monetary Fund revealed the stability of the Egyptian banking and financial sector despite the shocks that shook the global economy during the pandemic crisis of the outbreak of the Coronavirus.
According to the report issued by the fund, the banking system in Egypt has maintained levels of liquidity and profitability despite the emergence of concerns about loan portfolios and their costs due to the global economic slowdown. Noting that the banking system is in a good position to deal with pressure, with strong profitability and quality of assets, indicating that the flexibility of the exchange rate is a successful tool to absorb shocks.
According to the IMF, the Central Bank of Egypt is working with severely affected borrowers to reduce pressures in the near term through targeted loan adjustments, which could limit the immediate impact of the "Covid-19" outbreak.
The Fund expected the growth rates of the Egyptian economy to rise to about 6.4% during the fiscal year 2021-2022, indicating that Egypt is implementing important reforms to achieve more comprehensive growth led by the private sector. It also disclosed Egypt's ability and power to fulfill its external obligations, indicating that improving and developing the social safety net remains an important priority for the Egyptian government, as it examines opportunities to expand social support to include more groups.
Source (Al-Arabiya.net, Edited)
