IMF approves $ 2.77 billion in emergency aid to Egypt through Reuters

By Andrea Shalal and Aidan Lewis

WASHINGTON / CAIRO (Reuters) – The International Monetary Fund said on Monday that its board of directors had approved $ 2.77 billion in emergency funding to help Egypt cope the new coronavirus pandemic that has halted tourism and caused a major capital flight.

The IMF said it remains closely tied to the Egyptian government and the Central Bank of Egypt, and is ready to provide additional support when needed.

The first deputy managing director of the IMF, Geoffrey Okamoto, said that Egypt would need "additional accelerated support" from multilateral and bilateral creditors to close its balance of payments deficit, alleviate the burden of adjustment and preserving the macroeconomic stability gained by Egypt. with so much effort.

The Egyptian Ministry of Health reported on Monday 346 new cases of new coronavirus, bringing to 9,746 the total number of confirmed cases, including 533 deaths.

The epidemic has led to the closure of the Egyptian tourism sector, a key source of foreign income, and threatens revenues from the Suez Canal and remittances from Egyptian workers based abroad. The foreign exchange reserves of Egypt fell to 37 billion dollars, against more than 45.5 billion at the end of February.

The government has taken steps to contain the epidemic, including the introduction of a night curfew and the closure of cafes and mosques, but it has not imposed a complete closure while seeking to maintain economy.

The IMF said that Egypt had carried out an economic program before the epidemic of COVID-19, the respiratory disease caused by the coronavirus, achieving a "notable change" in its main external and internal imbalances.

The new funds will help the Egyptian authorities continue to spend on health, social protection and support for the most affected sectors and vulnerable groups, while limiting the decline in international reserves, said Okamoto.

He said that the Egyptian authorities were committed to ensuring full transparency and accountability for the expenses related to the crisis, and had agreed to publish information and conduct audits of procurement plans and contracts awarded expenses.