IMF approves immediate disbursement of $2bn under Egypt’s $5.2bn SBA loan

IMF approves immediate disbursement of $2bn under Egypt’s $5.2bn SBA loan

The International Monetary Fund's (IMF) Executive Board approved on Saturday immediate disbursement of the equivalent of Special Drawing Right (SDR) 1.4bn (about $2bn), under a 12-month Stand-by Arrangement (SBA) for Egypt, worth SDR 3.76bn (about $5.2bn or 184.8% of quota).

The remainder of the SBA loan will be phased over two reviews.

The new arrangement aims to help Egypt cope with the challenges posed by the novel coronavirus (COVID-19) pandemic. It provides IMF resources to meet the country's balance of payments needs and to finance the budget deficit.

The IMF-supported programme would also help the Egyptian authorities preserve the achievements made since 2016, and go towards supporting health and social spending to protect vulnerable groups. The finance package will help advance a set of key structural reforms to put Egypt on a strong footing, ensuring its sustained recovery with expanded and more inclusive growth and job creation over the medium term.

In a press statement, the IMF said that Egypt has proven to be one of the fastest growing emerging markets prior to the coronavirus outbreak. The country has a strong track record of successfully completing a home-grown economic reform programme between 2016 and 2019, supported by the IMF's Extended Fund Facility.

The IMF statement