Egypt to receive $5.2 bln under new IMF standby loan, $3.2 bln of which phased over two reviews

Egypt to receive $5.2 bln under new IMF standby loan, $3.2 bln of which phased over two reviews

Policies supported by the SBA loan to Egypt will focus on addressing the immediate COVID-19 crisis needs, including critical spending on health, social programmes to protect the most vulnerable, and assist directly affected sectors while safeguarding medium-term fiscal sustainability, Deputy Managing Director and Acting Chair of the IMF Antoinette Sayeh said in a statement on Saturday.

The International Monetary Fund (IMF) Executive Board approved on Friday Egypt's request to acquire a $5.2 billion loan under a standby agreement (SBA) to address the repercussions of the COVID-19 pandemic.

The fund's approval allows Egypt to obtain $2 billion immediately, while the remainder will be phased over two reviews.

The loan also aims at anchoring inflation expectations and preserving exchange rate flexibility, Sayeh added.

"Egypt was looking to broaden and deepen structural reforms begun under the Extended Fund Facility (EFF), but the COVID-19 pandemic has temporarily refocused government priorities to address the economic and health crisis. The government has responded decisively to the crisis with a comprehensive package that supports healthcare needs, the economy, and the most affected individuals and sectors. The Central Bank of Egypt has also taken several actions to support economic activity and borrowers,“ said Sayeh.

She added that the