The International Monetary Fund (IMF) has announced the approval of the release of the second tranche of emergency aid valued at $1.67 billion for Egypt to help in supporting its economy badly hit by the outbreak of coronavirus pandemic.
It explained that spread of the deadly respiratory disease and the country’s debt burden which was threatening Egypt’s economic recovery necessitated the release of the emergency fund.
The IMF Deputy Managing Director, Antoinette Sayeh, said that the approval by the IMF board of directors followed a virtual mission to Egypt last month.
He noted that after the meeting, the board announced an agreement in principle for the release of the second tranche as special aid for the country.
“The Egyptian authorities have managed well the Covid-19 pandemic and the related disruption to economic activity,” Antoinette Sayeh, the IMF deputy managing director, said.
“There are still risks to the outlook particularly as a second wave of the pandemic increases uncertainty about the pace of the domestic and global recovery.
“The high level of public debt and gross financing needs also leave Egypt vulnerable to volatility in global financial conditions,” Sayeh said.
In June, the board approved a one-year, $5.2 billion financing package for Egypt. With the latest disbursement, more than $3.6 billion will have been released.