Details of Egypt’s request for an IMF financial package to counter Corona (official statement)

The Egyptian government and the Central Bank submitted a request for a financial package from the International Monetary Fund, in accordance with the Rapid Financing Tool (RFI) program and the SBA program, to improve their capacities to face the emerging crisis of the Corona virus, in a proactive step based on the successful implementation of the economic reform program. To maintain the continued gains and positive results achieved by the Egyptian economy, in light of the exceptional circumstances experienced by all the countries of the world and developments in global situations, discussions have come to this request at an advanced stage, according to a press release issued by the Cabinet.

The statement added: “This agreement and the financing that accompanies it at this stage is important to support market confidence and preserve the gains and positive results achieved in recent years through the economic reform program that was praised by all international institutions, and the policies of this economic program during recent events have demonstrated their security The country’s vision, such as achieving an initial surplus of 2% of GDP, provided the government with a financial space to face exceptional crises and shocks, the budget deficit, public debt was reduced and sufficient international foreign exchange reserves could be paid. Therefore, he defended the stability of monetary and financial conditions in the country by absorbing external shocks and the turmoil of the world markets through which the world passes, which was positively reflected in the evaluation of international institutions for the economy. Egyptian, where the “Standard & Poor’s Corporation” decided to maintain Egypt’s credit rating, as it is at the “B” level with a stable outlook, compared to dozens of countries worldwide whose rating was downgraded.

These monetary and financial reform policies have enabled the state to provide and finance many initiatives that guarantee the maintenance of production and the continuity of employment, especially for the private sector during the current situation.

The request for support from the International Monetary Fund is important during these current exceptional circumstances and conditions to continue to maintain the stability of the indicators of the Egyptian economy and to protect itself against any negative effect that may hinder its ability to recover and return to economic growth. The Fund has praised Egypt’s leadership, thinking, clear economic policies and its merit. With this support to continue their ability to face this global crisis. “