Bloomberg: IMF to Approve $2.7 Bln Loan for Egypt

Egypt is expected to secure final approval for a $2.7 billion loan from the International Monetary Fund (IMF) within the framework of the lender’s rapid financing facility next week, Bloomberg revealed, according to an informed source.

Last month, Egypt requested a new loan from the IMF via both a stand-by agreement and the so-called Rapid Financing Instrument (RFI), saying it was needed to maintain its fastest-growing economy from the repercussions of the coronavirus pandemic.

“The IMF staff is in discussions with the authorities and expects to present the RFI request to the board on May 11th”, IMF Mission Chief for Egypt Uma Ramakrishnan, told Bloomberg, without giving an estimate for the expected funding.

The virus outbreak is putting pressure on some of Egypt’s main sources of foreign currency such as tourism, remittances, and Suez Canal receipts.

It is worth mentioning that, Egypt has so far registered 7588 COVID-19 cases, including 469 deaths.

The Egyptian health ministry has stepped up precautionary measures in the affected governorates and intensified campaigns to spread awareness about infectious diseases.

The World Health Organization (WHO) declared coronavirus a global pandemic as the new virus has rapidly spread to more than 121,000 people from Asia to the Middle East, Europe, and the United States.