Egypt receives $282mn loan from Arab Monetary Fund to support economy

By Shilpa Annie Joseph, Desk Reporter
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Arab Monetary Fund (AMF) has provided the second tranche of the loan of $282 million to Egypt within the framework of the Structural Adjustment Facility in the Public Finance Sector.

The AMF is eager to support its member countries’ efforts to implement economic, financial, and structural reforms in the face of a variety of challenges, using a variety of tools, including financing balance of payments and public budget needs, as well as financing trade through its affiliate, the Arab Trade Financing Program.

It also facilitates policy dialogue and consultation on economic, financial, and developmental issues through its various forums and activities, as well as providing technical assistance to member countries on economic, fiscal, and financial policies and training for government officials in member countries through its Institute for Training and Capacity Building.

In light of the developments occurring as a result of the COVID-19, and the accompanying economic and financial ramifications in several aspects, the AMF is also keen to provide financial and technical assistance to its member countries during this period. Furthermore, the AMF’s assistance in this sector is intended to support member countries’ reform efforts and the actions they are taking to stimulate the economy and supply liquidity to mitigate the virus’s harmful impacts.

The purpose of this tranche is to provide resources to assist the government in implementing economic and financial reforms while also bolstering its resilience to various challenges.

According to the reports, “The AMF follows closely the developments of the Egyptian economy and the challenges it faces due to the current circumstances and works through a fruitful partnership with the Egyptian government to help the country contain different challenges in the most effective way. In this respect, the AMF is studying another loan for the Arab Republic of Egypt to support the country’s financial position. The procedures for granting the loan will be completed shortly.”

The AMF is currently reviewing financing requests from other member countries and processing them through expedited procedures to offer support as quickly as possible, so that borrowing member countries can meet their financing needs and strengthen their financial positions to face various challenges, particularly in these difficult times.

Related: Arab Trade Finance Program offers $57mn financial aid to Tunisia

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