São Paulo – Like many other countries, Egypt experienced the economic impact of Covid-19, the ensuing global recession and stock market turmoil. President Abdul Fatah Khalil Al-Sisi and his cabinet were quick and assertive in their response to curb the spread of the novel coronavirus and support people and businesses.
So argued Kristalina Georgieva of Bulgaria, the International Monetary Fund (IMF) managing director since the end of last year, in a press release. Besides praising Egypt’s government, she said the Central Bank of Egypt implemented timely measures to support the domestic economy.
Georgieva said the administration and the Central Bank “requested financial assistance from the IMF under the Fund’s Rapid Financing Instrument (RFI) and a Stand-By Arrangement (SBA)” to support its “efforts and contain the economic and financial impact of the pandemic.”
The managing director said the RFI “will allow the government to address any immediate balance of payments needs and support the most affected sectors and vulnerable groups of people.” She expects the request to be presented to the IMF Executive Board “within the next few weeks.” The balance of payments relates to a country’s international trade – inward and outward cash flows from imports, exports, transfers and other operations.
Georgieva also said her team is working with the Egyptian government “to support its strong set of macroeconomic policies through an SBA.” She said the Fund fully supports “the government’s aim to safeguard the significant gains” made under the successfully completed reforms program, and “a comprehensive package of financial support, if approved, would help strengthen confidence in the Egyptian economy.”
Translated by Gabriel Pomerancblum