The one-year agreement for approval by the IMF`s Executive Board follows the $2.8 billion in emergency financing that the North African country provided last month under the Fund`s Rapid Financing Instrument as part of the country`s plan to close its financing gap. The agreement “is important at this stage to continue to support market and investor confidence in the Egyptian economy`s ability to cope with the effects of the coronavirus and the resumption of those effects, in addition to preserving the benefits of the economic reform program, praised by all international institutions. Egypt`s finance ministry said in a separate statement on Friday. Egypt and the International Monetary Fund have reached an employee-level agreement for a $5.2 billion stand-by deal to mitigate the economic impact of Covid-19, the Washington-based lender said in a statement Friday. The financing gap is “fully filled” by funding from the IMF, other multilateral institutions or bilateral agreements, Central Bank Deputy Governor Rami Abulnaga said in an interview last month with Saudi TV channel Al-Arabiya The Arab world`s most populous nation secured a three-year IMF program in late 2016. took out a $12 billion loan and sharply devalued the currency and reduced subsidies. These measures helped revive investor interest, which was shaken after the 2011 insurgency, a recovery that was most notable in the debt market, where record interest rates made the country a favorite of emerging markets. The IMF Stand by Arrangement (SBA) is an economic program of the International Monetary Fund (IMF) that includes financial assistance to a member state normally resulting from a financial crisis. In return for the aid, the economic programme provides for the necessary reforms in the recipient country in order to put it back on the path to financial stability and economic viability. The SBA is a subgroup of IMF and World Bank structural adjustment programs. The SBA framework allows the Fund to flexibly respond to countries` external financing needs and support their adjustment policies with short-term financing. Precautionary access.
HAPAs (High Access Precautionary Arrangements) are available to countries facing potentially very large financing needs and who do not plan to use approved amounts, but retain the possibility to do so if necessary. Read more: Egypt aims for $9 billion from imf and other institutions (2) duration. . . .