This allotment represents the second installment of the 12-month financial assistance, bringing total disbursements under the SBA to approximately $3.6 billion (EGP 56.55 billion), the IMF said.
The executive board of the IMF on June 26th approved the SBA loan to support the Egyptian authorities’ economic reform program during the COVID-19 pandemic.
“The high level of public debt and gross financing needs also leave Egypt vulnerable to volatility in global financial conditions,” according to the IMF statement.
Strong policy implementation, however, is expected to boost resilience and help maintain investor confidence in the local market, the international entity noted.
“The banking system has been resilient thus far, having entered the crisis well-capitalized and with ample liquidity,” according to the statement.
Last month, the IMF staff team stated that Egypt has been on track to receive the second tranche of the SBA facility.