IMF approves release of USD1.67 billion in aid to Egypt

WASHINGTON (AFP) – The board of the International Monetary Fund (IMF) on Friday approved the release of a second tranche of aid valued at USD1.67 billion for Egypt, saying public debt and COVID-19 threatened its economic recovery.

In June, the board approved a one-year, USD5.2 billion financing package for Egypt. With the latest disbursement, more than USD3.6 billion will have been released.

“The Egyptian authorities have managed well the COVID-19 pandemic and the related disruption to economic activity,” IMF Deputy Managing Director Antoinette Sayeh said.

“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.”