São Paulo – The Executive Board of the International Monetary Fund (IMF) approved Egypt’s request for USD 2.7 billion in financial aid, designed to address urgent balance of payment needs stemming from the Covid-19 outbreak. A country’s balance of payments consists of its transaction with the rest of the world, including imports. As reported by ANBA last April, IMF director Kristalina Georgieva lauded Egypt’s response to coronavirus, and spoke in favor of the emergency support.
In approving the request, the IMF Executive Board said the country carried out a successful economic reform program supported by the IMF’s Extended Fund Facility (EFF) to correct large external and domestic imbalances. It also said that the pandemic and global shock pose an immediate and severe economic disruption that “could negatively impact Egypt’s hard-won macroeconomic stability if not addressed.” According to the IMF, Covid-19 has brought the tourism industry to a halt, as well as prompting capital flight and a slowdown in remittances.
Pictured is Egypt’s president Abdul Fatah Khalil Al-Sisi.
Translated by Gabriel Pomerancblum
