Egypt requests new financial package from IMF amid coronavirus

The Egyptian government and the Central Bank have requested a new financial package from the International Monetary Fund (IMF), according to the Rapid Funding Tool program (RFI) and the SBA program, Prime Minister Mostafa Madbouli announced.

This package is to enhance the state’s capabilities to face the new coronavirus crisis.

In a proactive step based on the successful implementation of the economic reform program.to

The new package will be used to  maintain the continuing gains and positive results achieved by the Egyptian economy, in light of the exceptional circumstances experienced by all countries of the world amid coronavirus pandemic.

Madbouli added in a press conference that the government started discussions with IMF to secure financial aid package besides the technical one, noting that his government works in parallel to maintain the Egyptian economy with measures to face coronavirus.

“We target to avoid any negative repercussions that affect the Egyptian economy,” he clarified.

The PM added that the economic reform program helped the government in facing COVID-19 (coronavirus).

For his part, Governor of Egypt’s Central Bank Tarek Amer stated that Egypt’s new financial program with IMF lasts for a year.

Amer said that Egypt’s economy is flexible in terms of obtaining international funding to compensate loss occurred in some sectors due to COVID-19.

“IMF’s board is very excited with the new package due to the success of the previous program Egypt obtained,” Amer revealed.

As per banking sector, he said that the sector has been prepared well over the past years, and it was able to withstand the current crisis.

Amer noted that Egypt has foreign reserves that exceed its people needs, pointing out that the volume of foreign reserves will help in meeting the Egyptian economic needs during the coming years without disturbances.

‘We have capital of more than 450 billion Egyptian pounds  in banks” he said.

“The deal with IMF has technical and financial parts with the aim to maintain the confidence of the market and positives and gains of economic reform program,” Minister of Finance Mohamed Ma’it said.