The Egyptian government is in talks with the International Monetary Fund (IMF), through its Rapid Financing Instrument (RFI), seeking one-year financial assistance to cushion the country from the economic impacts of the coronavirus.
The aid will enable the government to meet its immediate needs in terms of balance of payments and rescue the most affected sectors, as well as the most vulnerable people in the country.
Tarek Amer, Egypt’s Central Bank governor, says the pandemic caused Cairo’s foreign exchange reserves to fall from $45.5 billion in February to $40.1 billion in March.
Africa News reports that by November 2016, Cairo had already secured a $12 billion (€10.7 billion) support package from the IMF, the last tranche of which was disbursed last year.
The organization’s RFI has already approved a $3.4 billion emergency loan for Nigeria, to help it curb the economic effects of COVID-19. Due to the pandemic, international oil prices have drastically declined.
The United Nations already announced that Africa needs a $100 billion stimulus package in order to survive the global COVID-19 pandemic, with the United Nations Economic Commission for Africa (UNECA) reducing the continent’s growth estimate from 3.2% to 1.8%.
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