The Arab Monetary Fund (AMF) has extended a new loan to Egypt, with the amount of AAD153.475m, the equivalent of approximately $615.8m, within the framework of the Structural Adjustment Facility in the Financial and Banking Sector.
The agreement was signed by Hassan Abdalla, Governor of the Central Bank of Egypt, on behalf of Egypt, and Abdulrahman A. Al Hamidy, Director General of the AMF, on behalf of the AMF. The loan supports a reform program aiming at enhancing the efficiency of the financial and banking sector in Egypt.
On this occasion, the Governor of the Central Bank of Egypt expressed his appreciation for the AMF’s continued support and the important role it plays in strengthening the ability of Arab countries to maintain economic and financial stability and face different challenges.
The Director General of the AMF valued the efforts pursued by the Egyptian government to implement economic and structural reforms, which contribute significantly to the development of the Egyptian economy and sustaining an enabling environment for the domestic and foreign business sectors, stressing the AMF keenness to continue the fruitful partnership with the Egyptian government to help the country address the different challenges in the most effective way.
The programme supported by the aforementioned loan includes a number of pillars enhancing the soundness and raising the efficiency of the payment systems infrastructure, enhancing financial inclusion and sustainability, strengthening the supervisory and regulatory framework in the financial and banking sector, expanding the scope of financial technologies and strengthening the protection of financial services consumers.
The AMF is currently studying financing requests from other member countries, and is processing the requests through expeditious procedures, in order to provide support as quickly as possible, so that the borrowing member countries can meet financing needs and enhance their financial positions to face various challenges, especially in such times.
The AMF supports the efforts of its member countries to implement economic and structural reforms, in face of various challenges, through a number of means, including financing the needs of the balance of payments and public budgets, and financing trade through its affiliate the Arab Trade Financing Program, in addition to its role in promoting policy dialogue and consultation on economic, financial and development issues via its various forums and activities, providing technical advice to member countries in the field of economic, fiscal and financial policies, and providing training for government officials in member countries through its Institute for Training and Capacity Building.
Moreover, within the framework of its endeavours to support regional financial integration, encourage inter-Arab trade and investments and link with the main trading partners of Arab countries, the AMF completed the establishment of the Arab Regional Payments Clearing and Settlement Organization “Buna” Platform with the aim of encouraging the use of Arab currencies in inter-financial and investment transactions, and contributing to strengthening compliance in clearing and settling these transactions. It is worth noting that the “Buna” Platform is in line with relevant international standards and has international acceptance, as it is seen as a model for alignment with the G20 directions to enhance cross-border payments.
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