IMF Approves $ 1.67 Billion Aid to Egypt

The International Monetary Fund (IMF) agreed on Friday to disburse a second tranche of aid worth $ 1.6 billion to Egypt as part of a program to support it, according to a statement by the Washington-based fund.

Earlier this month, Mohamed Maait, Minister of Finance said that Egypt will receive $1.6 billion from the International Monetary Fund by the end of this month as part of a 12-month Stand-by Arrangement (SBA), with total access of about US$5.2 billion.

During the activities of the Egypt Economic Summit 2020 (EES), Maait added that Egypt will receive the rest of the SBA, amounting to $3.2 billion over two reviews, $1.6 billion each.

The agreement will address balance of payments financing needs arising from the COVID-19 pandemic.

“The new Stand-By Arrangement supports the authorities’ ongoing efforts to mitigate the economic and social impact of the crisis while maintaining macroeconomic stability and safeguarding past achievements,” IMF wrote in its Egypt report.

“Together with the support of Egypt’s development partners, disbursements from the SBA will help address large financing needs,” International Monetary Fund added.