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IMF Approves $2.7 Billion in Emergency Support to Egypt

IMF Approves $2.7 Billion in Emergency Support to Egypt
© Photograph: IMF

On 11 may 2020, the International Monetary Fund (IMF) Executive Board approved Egypt’s request for emergency financial assistance of US $ 2.772 billion under the Rapid Financing Instrument (RFI) to address economic disruption stemming from the outbreak of the Covid-19 pandemic.

The IMF reported that the RFI would help Egypt to “alleviate pressing financing needs, including for health, social protection, and supporting the most impacted sectors and vulnerable groups.

According to the IMF, “Egypt achieved a remarkable turnaround prior to the COVID-19 shock, carrying out a successful economic reform program supported by the IMF’s Extended Fund Facility (EFF) to correct large external and domestic imbalances.”

Following the Executive Board decision, First Deputy Managing Director and acting Chair, Geoffrey Okamoto, said: “As the crisis abates, measures to lower the debt level would need to resume along with continued implementation of structural reforms to increase the role of the private sector to achieve higher and inclusive private sector-led growth and job creation, unlocking Egypt’s growth potential and entrenching resilience.”