Meetings on IMF’s new financial package to be held online: CBE

Mon, Apr. 27, 2020
CAIRO – 27 April 2020: Meetings and negotiations between the Egyptian part and the International Monetary Fund (IMF) will be held online during the coming period via video conference technique, Deputy Governor of the Central Bank of Egypt (CBE) Ramy Abu El-Naga said Monday.

Abu El-Naga clarified that negotiations do not require travelling to the Fund's headquarters in the American capital, Washington, due to the flight ban as a result of the consequences of the spread of COVID-19 (coronavirus).

CBE’s deputy governor noted that the Egyptian negotiation team includes members of the Central Bank and the governmental economic group.

Moreover, he stressed that the value of the financial agreement of the funding package has not been determined yet. “This will be announced within the next few weeks,” he stated.

Abu El-Naga said that the Egyptian government is in constant contact with international financial institutions, including the International Monetary Fund.

He pointed out that the new agreement is a "fast financing tool", which allows obtaining a financing package from the IMF, without conditions in addition to a credit readiness agreement. He added that it is a year-long program that come in segments spent in installments, within a year.

CBE’s deputy governor further clarified that the technical assistance from the fund is continuous.

He stated that the new loan from the IMF is one year long, and works to preserve what has been achieved with successes of the Egyptian economic reform program, which has been over a period of 3 years, according to which Egypt obtained $12 billion dollars from the Fund.

Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said that 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.

“We fully support the government’s aim to safeguard the significant gains made under the successfully completed three-year Extended Fund Facility last year,” she said.

IMF praises Egypt's measure confronting COVID-19, comments on new package request

CAIRO - 27 April 2020: "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.

Prime Minister Mostafa Madbouli announced Sunday that the Egyptian government and the Central Bank have requested a financial package from the International Monetary Fund (IMF), according to the Rapid Funding Tool program (RFI) and the SBA program.

This package is to enhance the state’s capabilities to face the new COVID-19 virus crisis, in a proactive step based on the successful implementation of the economic reform program; to maintain the continuing gains and positive results achieved by the Egyptian economy, in light of the exceptional circumstances experienced by all countries of the world and developments in global conditions.

Egypt requests new financial package from IMF for 1 year

CAIRO - 26 April 2020: The Egyptian government and the Central Bank have requested a financial package from the International Monetary Fund (IMF), according to the Rapid Funding Tool program (RFI) and the SBA program, Prime Minister Mostafa Madbouli announced Sunday.

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