IMF plans to approve $ 1.6 billion in financing for Egypt
WASHINGTON – The International Monetary Fund announced on Tuesday that it plans to provide an additional $ 1.6 billion in funding to Egypt after its board of directors approves the funding in the coming weeks.
The IMF said its staff had reached an agreement with Egyptian authorities on additional financing after a second and final review of Egypt’s economic program and a standby agreement of $ 5.2 billion over 12 months.
“The Egyptian economy has shown resilience, with the impact of the COVID-19 crisis being mitigated by the authorities’ swift and balanced political response,” the IMF said in a statement.
He said Egypt’s fiscal and monetary policies should continue to support economic recovery, and called for further efforts on the country’s economic reforms.
The IMF said it forecasts economic growth of 2.8 percent in FY2020/2021 and 5.2 percent in FY2021/22.
The IMF said Egypt had met all of its structural benchmarks, including measures to reform budget transparency and governance, social protection and improve the business environment.
But more needed to be done to encourage exports by further reducing trade barriers and building a greener economy.
“Deepening and broadening structural reforms are essential to solidify the recovery, address post-COVID-19 challenges, strengthen buffers and ensure higher and more inclusive growth,” he said.