The International Monetary Fund announced that its board of directors agreed yesterday, Wednesday, to grant Egypt the last installment of a loan it obtained as part of a 12-month aid program, noting that the value of this payment amounts to about $1.7 billion.
The monetary institution said – in a statement issued at its headquarters in Washington – that Egypt responded to the Covid-19 crisis with wise financial and monetary facilitation, which helped mitigate the health and social repercussions of the crisis, and at the same time helped maintain both economic stability, debt service and investor confidence. Read also What is the impact of raising the minimum wage on Egyptians? Sisi raised wages and pensions..so why the Egyptians were angry? Exorbitant customs and additional taxes.. Online purchase has become a dream for Egyptians What makes the agricultural sector in Egypt less competitive locally and internationally?
At the conclusion of a second review of the Egyptian economy on May 25, the Fund announced that it had reached a preliminary agreement with Cairo on disbursing this last tranche of the loan.
In its statement, the Fund pointed out that in light of the risks that continue to threaten the Egyptian economy stemming from global uncertainty, high public debt and Egypt’s financing needs, short-term fiscal and monetary policies should continue to support recovery and at the same time maintain macroeconomic stability.
The Fund also expressed its conviction that deepening and expanding structural reforms will be necessary to meet the post-pandemic challenges, and to unleash Egypt’s huge growth potential.
At the end of June 2020, the International Monetary Fund approved a 12-month aid plan for Egypt with a total value of about $5.2 billion (equivalent to $5.4 billion currently), including $2 billion that Cairo immediately obtained to help it face the repercussions of the pandemic. COVID-19.
Soon, the Fund’s Board of Directors agreed last December, at the conclusion of a first review of the Egyptian economy, to release $1.6 billion of this loan, after it became clear to it that the Egyptian authorities had dealt properly with the pandemic crisis.