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Egypt: IMF to grant $2.77bn to limit coronavirus impact

The International Monetary Fund (IMF) said it would grant 2.77 billion dollars to Egypt to limit coronavirus impact on the economy.

“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,” the Washington-based institution said.

The grant will help Egypt limit the decline in its foreign currency reserves and provide financing to the budget for “targeted and temporary spending.”

Egypt has so far reported a total of 9,746 infections of coronavirus, including 533 deaths.

Prime Minister Mostafa Madbouly said at the time the IMF loan would be a “proactive step” against potential repercussions on Egypt’s economy due to the virus and was aimed at preserving the gains made during economic reforms in recent years.

Egypt’s foreign reserves fell to 37 billion dollar at the end of April from about 40 billion dollars at the end of March after having fallen by 5.4 billion dollars in March.

Egypt in 2016 secured a 12-billion-dollar, three-year IMF loan to help the Egyptian government implement economic reforms that saw tough austerity measures imposed in order to help the country stabilize its finances.

In 2019, Egypt received the last tranche of the IMF loan.

The IMF has stepped up its assistance to help nations struggling as the global economy enters a downturn amid lockdowns in countries around the world to stem the virus’ spread.

Source: Voice of Nigeria