IMF Board to Receive Egypt's Request for Financial Assistance in Weeks

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva expected the Egyptian government's request to get rapid financial assistance to tackle the ramifications of the coronavirus outbreak to be presented to the IMF's board within weeks.

“I expect the request for the RFI to be presented to the IMF’s Executive Board within the next few weeks,” Georgieva said in a press release on Sunday.

“To support these efforts and contain the economic and financial impact of the pandemic, the Central Bank and the Government of Egypt have requested financial assistance from the IMF under the Fund’s Rapid Financing Instrument (RFI) and a Stand-By Arrangement (SBA),” Georgieva said.

“We fully support the government’s aim to safeguard the significant gains made under the successfully completed three-year Extended Fund Facility last year,” she added.

“This comprehensive package of financial support, if approved, would help strengthen confidence in the Egyptian economy, make further progress to protect the most vulnerable and provide the basis for a strong economic recovery,” Georgieva said.

She also hailed President Abdel Fattah El Sisi and the government's decisive measures aftermath the pandemic outbreak to support the affected people and businesses.

"President El Sisi and his Government have responded quickly and decisively with measures to limit its spread and provide support to affected people and businesses. The Central Bank of Egypt has also implemented timely measures to support the domestic economy," she added.

Meanwhile, Deputy Governor of the Central Bank of Egypt (CBE) Rami Aboul Naga said the bank and IMF did not agree on the value of the new-demanded financial package.

In statements to MENA, Aboul Naga pointed out that the negotiations are still underway to reach an agreement, which will be pided into two financial packages namely; RFI and SBA.

Under RFI, Egypt, within few weeks, will get a quick fund from IMF, whose value is set to be determined according to Egypt's economic indicators and achievements in its economic reform program, Aboul Naga noted, adding the value of RFI package will be paid within an average period of up to five years.

The SBA financial package's period will be one year, he stated, underlining the government likely will receive it in three batches.