IMF working with Egypt on Stand-By agreement to support a strong economic recovery

The International Monetary Fund is working with Egyptian authorities on a Stand-By agreement (SBA) to design strong policies to support a strong economic recovery, IMF spokesman said on Thursday.

“We are working with the Egyptian authorities on this request, so, this is on the standby request, to design a strong set of policies to support a strong economic recovery.” Gerry Rice, director of the communications department at the IMF, said in a press briefing.

“The modalities of the SBA, its length, its size, the policy package, et cetera, et cetera, will be considered in the context of a discussion with the authorities, and then, as always, a discussion with our Executive Board and final approval, as always, by our Executive Board.”

On Tuesday, Egypt’s planning minister Hala al-Saeed said the SBA would focus on structural reforms to remove constraints on private businesses, a step aimed to help the country through the coronavirus pandemic.

The one-year IMF programme would help with any payment gaps businesses face as a result of the pandemic, al-Saeed added.

Repayment of the Stand-By facility would be spread out over the medium term, she said.

The minister further said that it would include financing from bilateral and multilateral resources.