IMF assures Rapid Financing Instrument, RFI, supports for Egypt

Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), after a satisfactory timely implemented measures by the Central Bank of Egypt to support the domestic economy,  has assured IMF’s supports for   Egypt to address  immediate balance of payments needs and support the most affected sectors and vulnerable groups of people in the COVID-19 outbreak through Rapid Financing Instrument. Kristalina Georgieva’s statement, made available to OpenLife by IMF media office, explains details of the financial arrangement as reproduced below

“Like many countries around the world, Egypt’s  economy has been impacted by the COVID-19 outbreak, the related global recession, and financial markets turmoil. President El Sisi and his Government have responded quickly and decisively with measures to limit its spread and provide support to affected people and businesses. The Central Bank of Egypt has also implemented timely measures to support the domestic economy. 

“To support these efforts and contain the economic and financial impact of the pandemic, the Central Bank and the Government of Egypt have requested financial assistance from the IMF under the Fund’s Rapid Financing Instrument (RFI) and a Stand-By Arrangement (SBA). The emergency financing under the RFI will allow the government to address any immediate balance of payments needs and support the most affected sectors and vulnerable groups of people. I expect the request for the RFI to be presented to the IMF’s Executive Board within the next few weeks.” 

“My staff is also working with the Egyptian government to support its strong set of macroeconomic policies through an SBA. We fully support the government’s aim to safeguard the significant gains made under the successfully completed three-year Extended Fund Facility last year. This comprehensive package of financial support, if approved, would help strengthen confidence in the Egyptian economy, make further progress to protect the most vulnerable and provide the basis for a strong economic recovery. It would also help accelerate Egypt’s reform efforts aimed to support broad-based, job-rich and sustainable growth.”