#Other countries : The board of directors of the International Monetary Fund (IMF) approved, Friday, a new confirmation agreement (SBA) of 5.2 billion dollars over 12 months. It aims to help the country cope with the Covid-19 pandemic and to close the budget deficit and the balance of payments.
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After strong successes of a local economic reform program supported by the IMF’s Extended Facility Fund in 2016-2019, Egypt was one of the fastest growing emerging markets before the Covid-19 epidemic . However, the major national and global disruptions by the pandemic have worsened economic prospects and altered political priorities, the IMF stresses.
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The authorities’ economic policy framework, supported by the SBA, aims to maintain Egypt’s macroeconomic stability with the priorities: 1) to protect the necessary social and health spending while avoiding excessive accumulation of public debt; 2) anchor inflation expectations and preserve financial stability while maintaining a flexible exchange rate; and 3) implement key structural reforms to strengthen transparency, governance and competition, concludes the same source.
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