Egypt is in talks with the International Monetary Fund (IMF) seeking new funding, possibly including a new loan, to mitigate the economic shocks of the Russia-Ukraine war on its economy.
Egypt is one of the Middle East’s most indebted nations, and a major food importer. Surging prices of energy and grains as a result of the Ukraine war, along with rising interest rates in the developed world, have increased the risks to its economy.
In 2020, Egypt secured a $5.2 billion stand-by arrangement as well as $2.8 billion under the IMF’s Rapid Financing Instrument, helping authorities tackle the impact of the coronavirus.
This comes as the IMF earlier this month approved a $1.4 billion of emergency funding for Ukraine, to help meet urgent spending needs and mitigate the economic impact of Russia’s military invasion.
The Fund’s managing director Kristalina Georgieva said the funds will be disbursed under its Rapid Financing Instrument (RFI). This means it largely comes without conditions that are usually placed on borrower countries.
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