IMF approves $5.2 billion standby loan to Egypt

IMF approves $5.2 billion standby loan to Egypt

The International Monetary Fund (IMF) said on Friday its executive board has approved a $5.2 billion standby loan to Egypt to help it cope with the coronavirus pandemic implications.

The 12-month Stand-By Arrangement (SBA) "aims to help Egypt cope with challenges posed by the COVID-19 pandemic by providing fund resources to meet Egypt's balance of payments needs and to finance the budget deficit," the IMF said.

"The program would also help the authorities maintain the achievements made over the past four years, support health and social spending to protect vulnerable groups, and advance a set of key structural reforms to put Egypt on a strong footing for sustained recovery with higher and more inclusive growth and job creation over the medium term."

Last month, the IMF approved another financing package for Egypt -- a $2.77 billion Rapid Financing Instrument, as the country grapples with the economic fallout from the highly-contagious coronavirus.

Egypt recently said the new staff-level agreement reflects the confidence of international institutions in the country's monetary and financial policies and the way it's dealing with the COVID-19 crisis.

The finance ministry added that the agreement will also "maintain the gains that have been reached in recent years thanks