Arab Monetary Fund extends Egypt’s US$368M loan to counter coronavirus repercussions

EGYPT – The Arab Monetary Fund has provided a new 87.7 million dinars (US$368 million) compensatory loan to Egypt for containing the effects of the Coronavirus.

The agreement was signed by the Governor of the Central Bank of Egypt (CBE), Tarek Amer, and General Director and Chairman of the Fund’s Board of Directors, Abdel Rahman bin Abdullah Al-Hamidi.

The new loan brings the total number of loans provided by the fund to Egypt to 15, with a total value of about US$2.6 billion.

Egypt’s total external debt jumped to US$137.85 billion in June, according to central bank data issued in October.

AMF said it is correctly tracking developments in the Egyptian economy and the challenges it faces due to Covid-19.

It is currently working with the Egyptian government to help the country contain the different challenges in the most effective way.

The fund noted that it is interested in providing financial and technical support to its member states during this period in particular in light of the developments taking place due to the Covid-19 virus.

This will stimulate the economy and provide liquidity with the aim of containing the negative effects of the virus outbreak.

The fund is also keen to support the efforts of its member countries to implement economic, financial, and structural reforms mainly by providing financing to meet the needs of balances of payments and public budgets.

Additionally, it promotes policy dialogue and consultation on economic, financial, and development issues via its various forums and activities.

Through its Foreign Exchange Services for Sovereigns, the Fund executes foreign exchange services for its Member States denominated in major currencies.

These services are offered to central banks and ministries of finance of member states.

It also offers deposit services to member states that mature with time depending on the needs of the country.

Currently, AMF is studying financing requests from other member countries and processing the requests through expeditious procedures for quick response.

This will enable borrowing member countries to meet financing needs and enhance their financial positions to face various challenges.

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