Subject to the approval of the IMF executive board, nearly $1.6 billion (EGP 24.96 billion) that is equivalent to an additional 1.16 billion of Egypt’s quota will be available to the North African state.
Last June, Egypt reached a staff-level agreement with the IMF on a loan worth $5.2 billion (EGP 81.11 billion).
The IMF ensured that the country’s fiscal policy during fiscal year 2020/2021 remains “appropriately focused on supporting the immediate priorities in health, protecting the most vulnerable, and supporting sectors affected by the pandemic,” according to the statement.
The fiscal policy is also seen on track to achieve a primary surplus of 0.5% of the gross domestic product (GDP).
“The government’s commitment to returning to a primary surplus of 2% of GDP as the economic recovery becomes entrenched will be essential to reduce public debt and support fiscal sustainability,” the IMF remarked.
Arab Finance has recently interviewed IMF Director of the ME and Central Asia Regions Jihad Azour to talk about the Middle East’s recovery process amid the COVID-19.
*At press time, the conversion rate is $1 = EGP 15.60