IMF approves $2.7bn aid for Egypt

The International Monetary Fund (IMF) said it would give Egypt 2.7 billion dollars in aid to help it “meet the urgent balance of payments”.

Egypt is currently facing an economic crisis as a result of the coronavirus pandemic.

According to the IMF statement, the aid will help Egypt limit the decline in its foreign currency reserves. The aid will also provide financing to the budget for “targeted and temporary spending.”

“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 Washington-based institution said.

On April 26, Egypt’s government said it had applied for an IMF financial package to boost its ability to counter the novel coronavirus crisis.

Egypt has so far reported a total of 9,746 infections of coronavirus, including 533 deaths.

Prime Minister Mostafa Madbouly said at the time the IMF loan would be a “proactive step” against potential repercussions on Egypt’s economy due to the virus.