IMF executive board due to discuss Egypt’s request for loan today

The executive board of the International Monetary Fund (IMF) is set meet on May 11 to consider Egypt’s request for a Rapid Financing Instrument (RFI) loan to help deal with the coronavirus impact.

Late April, Egyptian Prime Minister Moustafa Madbouly announced that the country asked the IMF for a new financial support under both a Stand-By Arrangement (SBA) and the Rapid Financing Instrument (RFI), to shield the country’s economy from the fallout of the pandemic.

Later in the same day of announcing the request, IMF’s managing director Kristalina Georgieva said in a statement that the RFI would enable Egypt to “address any immediate balance of payments needs and support the most affected sectors and vulnerable groups of people,”

Egypt is one of many African nations turning to the Washington-based lender as the pandemic is affecting economies worldwide.

The IMF has already agreed a total of $10.4 billion in emergency coronavirus funding across Africa in recent weeks, including Nigeria, Kenya, Tunisia, and Mozambique.

In 2019, Egypt completed an IMF-backed reform programme which included a three-year $12 billion loan and sought to revive investors’ confidence.