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IMF approves release of $1.67 billion in aid to Egypt

December 20, 2020 at 12:33 pm

Egyptian President Abdel Fattah el-Sisi (R) meets with Managing Director of the International Monetary Fund (IMF) Christine Lagarde (2nd L) during their meeting as part of the G20 Leaders’ Summit in Hangzhou, China on 3 September, 2016 [Egyptian Presidency Press Office/Anadolu Agency]

The International Monetary Fund (IMF) approved the release of $1.67bn in financial aid to Egypt on Friday over fears COVID-19 is threatening its economic recovery, The New Arab reported.

The IMF board approved a one year package for Egypt worth $5.2bn back in June, and after this second tranche of cash, $3.6bn will have been released.

“The Egyptian authorities have managed well the Covid-19 pandemic and the related disruption to economic activity,” Antoinette Sayeh, the IMF deputy managing director, said.

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“There are still risks to the outlook particularly as a second wave of the pandemic increases uncertainty about the pace of the domestic and global recovery.

“The high level of public debt and gross financing needs also leave Egypt vulnerable to volatility in global financial conditions.”

Last month, the IMF carried out a virtual mission to Egypt, and agreed in principle to release the second load of cash.