ArabFinance: The International Monetary Fund’s (IMF) executive board approved on August 11th a 12-month stand-by arrangement for Egypt at a total value of $5.2 billion (EGP 83.11 billion), according to an official announcement.
This will grant Egypt access equivalent to a special drawing right of 3.76 billion or 184.8% of quota.
The loan aims to help Egypt cope with challenges posed by the COVID-19 pandemic, the IMF said.
It noted that this will be carried out by providing fund resources to meet the country’s balance of payments needs while financing the budget deficit.
The Arab republic submitted its request last June to obtain the loan, which is expected to "safeguard the gains achieved by Egypt over the past three years and put the country on a strong footing for sustained recovery,” as described by the IMF's Mission Chief for Egypt Uma Ramakrishnan.
Egypt’s central bank recently announced that net international reserves reached $38.31 billion at the end of July.
*At press time, the conversion rate is $1 = EGP 15.98
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