Egypt has received on Tuesday $2.77 billion in emergency financing from the International Monetary Fund (IMF), the country's state news agency MENA reported, citing a senior central bank source. On Monday, the IMF's executive board had approved the financial assistance under the Fund's Rapid Financing Instrument (RFI) in an effort to help Egypt to contend with the coronavirus pandemic that has brought tourism to a standstill and triggered capital flight. The RFI aims to meet Egypt's urgent balance of payments needs stemming from the outbreak of the pandemic. It will help alleviate the country's pressing financing needs, including for health, social protection, and supporting the most impacted sectors and vulnerable groups. "The Executive Board of the International Monetary Fund (IMF) approved Egypt's request for emergency financial assistance of SDR 2,037.1 million (US$ 2.772 billion, 100 percent of quota) under the Rapid Financing Instrument (RFI) to meet the urgent balance of payments needs stemming from the outbreak of the COVID-19 pandemic." IMF said in its Monday statement. The pandemic and global shock pose an immediate and severe economic disruption that could negatively impact Egypt's hard-won macroeconomic stability if not addressed, the Fund added. "Egypt achieved a remarkable turnaround prior to the COVID-19 shock, carrying out a successful economic reform programme supported by the IMF's Extended Fund Facility (EFF) to correct large external and domestic imbalances." IMF added. However, the Fund said the pandemic and global shock pose an immediate and severe economic disruption that could negatively impact "Egypt's hard-won macroeconomic stability if not addressed." "The authorities have launched a comprehensive package to contain the economic impact of the COVID-19 shock. The RFI will help alleviate some of the most pressing financing needs, including for spending on health, social protection, and supporting the most impacted sectors and vulnerable groups."
