IMF finishes 1st review approving $1.67bn for Egypt

The International Monetary Fund completed the first review of Egypt’s reform programme paving the way for the North African country to draw $1.67 billion under a stand by arrangement (SBA).

The total disbursement under the 12-month arrangement is now to $3.6bn, the Washington-based lender said.

“Egyptian authorities have managed well the Covid-19 pandemic and the related disruption to economic activity,” Antoinette Sayeh, deputy managing director and acting chair of the IMF’s executive board, said. “The proactive measures taken to address health and social needs and to support the sectors most directly affected by the crisis have helped mitigate the economic and human impact.”

In June, the fund had approved a 12-month $5.2bn loan for Egypt to help it cope with challenges posed by the Covid-19 pandemic and finance its budget deficit and balance of payments shortfalls.

The approval came with the immediate disbursement of about $2bn to help Egyptian authorities preserve the macroeconomic achievements made over the past four year