Arab Monetary Fund extends new loan worth $639mln to Egypt

Loan to support financial sector reform


ABU DHABI - The Arab Monetary Fund, AMF, has extended a US$639 million new loan to the Arab Republic of Egypt, within the framework of the Structural Adjustment Facility, to support a reform programme in the public finance sector due to the current circumstances.

The loan agreement was signed on 21st July, 2020, by Dr. Rania A. Al-Mashat, Egyptian Minister of International Cooperation, and Dr. Abdulrahman A. Al Hamidy, Director-General and Chairman of the Board of Executive Directors of the AMF, said an AMF statement issued on Wednesday.

The fund is keen to support the efforts of its member countries to implement economic, financial and structural reforms, to meet 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 Programme.

The AMF also promotes policy dialogue and consultation on economic, financial and developmental issues via its various forums and activities, provides technical advice to member countries in the economic, fiscal and financial policies fields, and provides training for government officials in member countries through its Institute for Training and Capacity Building.

The fund is also keen to provide financial and technical support to its member countries during this period in particular, in light of current pandemic, and the ensuing economic and financial repercussions in different aspects. The AMF assistance in this regard comes as a support to the reform efforts of member countries and the measures they are taking to stimulate the economy and provide liquidity in order to contain the negative effects of the virus outbreak.

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, said the statement.

© Copyright Emirates News Agency (WAM) 2020.

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