The International Monetary Fund’s (IMF) emergency financial support for Egypt will go to supporting those sectors most affected by the coronavirus (COVID-19) pandemic, according to Minister of Finance Mohamed Maait.
In a statement on Thursday, Maait said the emergency support will help the government finance those sectors that have been most impacted, including the health sector, and enhance social protection programmes.
This is especially in light of the decline in some public revenues and the increase of some expenses associated with the global pandemic.
On Monday, the IMF gave the go ahead for Egypt to receive $2.772bn under the Rapid Financing Instrument (RFI) to counter the negative economic side effects as a result of the pandemic. Maait said that this reflects the IMF’s confidence in the Egyptian government and its capabilities to deal with the virus.
Maait added that Egypt has put in much effort in recent years to achieve macroeconomic stability. He noted that the government has to create a balance between preserving the health of citizens and keeping the economy alive and production ongoing.
He also said that the government has adopted a proactive policy for manage the current crisis. This includes providing a financial package estimated at about 2% of GDP to support the Egyptian economy, whilst also working to reduce the spread of the coronavirus and mitigate its negative effects.