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Egypt, IMF Reach Staff-Level Agreement Upon 1st Review of $5.2b Financing

Egypt, IMF Reach Staff-Level Agreement Upon 1st Review of $5.2b Financing

Saturday, 21 November, 2020 - 05:00

The International Monetary Fund (IMF) said on Thursday it had reached a staff-level agreement with Egypt after the first review of a $5.2 billion financing.

Upon the approval of the executive board, a $1.6 billion tranche will be disbursed, the statement said.

“The Egyptian economy performed better than expected despite the pandemic,” the IMF statement said.

"Containment measures, supported by the authorities’ effective crisis management, and strong implementation of their policy program helped mitigate the effects of the crisis."

According to IMF, Egypt's commitment and strong performance helped meet all program targets for end-September 2020.

It also welcomed measures taken by the country's central bank.

“The Central Bank of Egypt’s (CBE) monetary policy remains appropriately accommodative. In this regard, we welcome the CBE’s recent interest rate cuts to further support economic recovery amid muted inflation."

IMF said the current agreement with Egypt is subject to approval by the IMF’s Executive Board, which will take place in the coming weeks.

"Upon approval, an additional SDR 1.16 billion (about US$1.6 billion) will be made available to Egypt," it added.

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