The Executive Board of the International Monetary Fund (IMF) announced on Friday that it would decide on Egypt's request for a loan of $ 5.2 billion under the Standby Agreement (SBA) on Friday 26 June, according to the Board's calendar published on the International Monetary Fund's website.
The Standby Agreement entails countries to have specific financial and fiscal conditions to receive the fund, which would be disbursed in tranches starting the year 2021.
The loan will be an integral program in a fast-tracking pace over one year for the transition phase that is expected to see the reopening of Egypt’s economy and the recovery from the COVID-19 crisis, in addition to maintaining Egypt’s economic reform gains and boosting the recovery efforts, according to the director of the Middle East and Central Asia Department at the IMF, Jihad Azour.
On June 5, Egypt reached with the IMF team an expert-level agreement on a 12-month credit agreement worth $5.2 billion.
The Monetary Fund stated that the recent agreement sets the stage for presentation to the Executive Board to obtain its final approval of the agreement and the required financing amount.
The Deputy Governor of the Central Bank of Egypt, Rami Abou El-Naga confirmed earlier that Egypt's foreign exchange reserves are sufficient to meet the import needs for a period of 7 months, which is a higher rate than international averages.
Abou El-Naga then referred to the $ 2.8 billion rapid financing package for Egypt from the IMF, confirming Egypt's ability to knock on the gates of financing institutions to enhance these reserves in the event of future needs arising.
On the other financing expected up to $ 6 billion from the International Monetary Fund, Abu al-Naja said, "The negotiation has not ended yet, and the amount is close to that and is subject to some negotiations, and will depend on the final form of the targeted program from this financing."
The Egyptian Minister of Finance said that the emergency financial support agreed upon by the International Monetary Fund will help the government finance some of the urgent needs of some sectors, such as the health sector, and enhance social protection programs.
Gerry Rice, Director of Communications Department and Spokesman for the International Monetary Fund, said earlier during a televised news conference that 12 countries from the Middle East and North Africa region got about $ 7 billion through the rapid support program in the wake of the emerging crisis of the Corona virus pandemic. Health and economic.
Last May, Egypt obtained 2.77 billion dollars through the rapid financing program that was made available by the International Monetary Fund in the wake of the "COVID-19" pandemic and the health and economic crisis resulting from it.
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