COVID-19: IMF Reaches $5.2bn Stand-by Arrangement With Egypt

• Egypt-IMF Reached Stand by Arrangement of $5.2 billion to Support Egypt’s Economy

The International Monetary Fund (IMF) on Monday said it has reached a Stand-by Arrangement (SBA) with the Egyptian authorities to ease the economic downturn brought about by the COVID-19 pandemic.

The virtual meetings held between May 19 to June 5, 2020 and presided over by Ms. Uma Rmakrishnan, IMF Mission, Egyptian authorities discussed how the fund can support authorities’ policy plans to speed up economic recovery and stabilise macroeconomic factors.

This was coming a month after the Nigerian authorities secured a $3.4 billion facility support from the IMF under the Rapid Financing Initiative (RFI), Egypt’s $5.2 billion SBA, according to IMF, is under the RFI programme of the Fund.

In a statement published by the International Monetary Fund on Monday, Remakrishnan, said: “I am pleased to announce that the Egyptian authorities and the IMF team have reached staff-level agreement on economic policies that could be supported by a 12-month Stand-By Arrangement (SBA). The SBA, with requested access of SDR 3.8 billion (equivalent to around US$5.2 billion), supports the authorities’ efforts to maintain macroeconomic stability amid the COVID-19 shock while continuing to advance key structural reforms. This will safeguard the gains achieved by Egypt over the past three years and put the country on strong footing for sustained recovery as well as higher and more inclusive growth and job creation over the medium term. The SBA will also aim to support health and social spending, improve fiscal transparency, and advance further reforms to spur private-sector-led growth and job creation. The arrangement is also expected to catalyze additional bilateral and multilateral financial support.

“This agreement is subject to approval by the IMF’s Executive Board, which is expected to consider Egypt’s request in the coming weeks.”