Egypt is seeking an aid package from the
International Monetary Fund to offset the economic impact of the coronavirus
pandemic, Prime Minister Mostafa Madbouli said Sunday.
International Monetary Fund to offset the economic impact of the coronavirus
pandemic, Prime Minister Mostafa Madbouli said Sunday.
In a
televised press conference with the central bank governor and other ministers,
Madbouli did not specify the size of the one-year financial aid package the
government was seeking from the IMF alongside technical assistance.
televised press conference with the central bank governor and other ministers,
Madbouli did not specify the size of the one-year financial aid package the
government was seeking from the IMF alongside technical assistance.
He said
the loan would be negotiated “within days”.
the loan would be negotiated “within days”.
Touting
the North African economy’s strong performance before the outbreak, he said the
aid package was crucial given that flights are grounded and tourism halted.
the North African economy’s strong performance before the outbreak, he said the
aid package was crucial given that flights are grounded and tourism halted.
“No one
knows when this crisis will end so we wanted to take some measures that would
build on the economy’s gains, especially after the complete shutdown of the
aviation and tourism sectors,” Madbouli said.
knows when this crisis will end so we wanted to take some measures that would
build on the economy’s gains, especially after the complete shutdown of the
aviation and tourism sectors,” Madbouli said.
Egypt’s
tourism sector earned $12.6 billion in 2019, the highest figure in nearly a
decade.
tourism sector earned $12.6 billion in 2019, the highest figure in nearly a
decade.
But the
impact of coronavirus has been severe. Foreign reserves dropped from $45.5
billion in February to $40.1 billion at the end of the march, central bank
governor Tarek Amer said.
impact of coronavirus has been severe. Foreign reserves dropped from $45.5
billion in February to $40.1 billion at the end of the march, central bank
governor Tarek Amer said.
Planning
Minister Hala Saeed said that even though the “unprecedented crisis” prompted
by the virus had affected global markets, Egypt was still on track to achieve
4.5 percent growth this year.
Minister Hala Saeed said that even though the “unprecedented crisis” prompted
by the virus had affected global markets, Egypt was still on track to achieve
4.5 percent growth this year.
The
country loosened its lockdown restrictions with the beginning of the holy month
of Ramadan, allowing shops and malls to trade on weekends and reducing curfew
hours by an hour to 9pm until 6am.
country loosened its lockdown restrictions with the beginning of the holy month
of Ramadan, allowing shops and malls to trade on weekends and reducing curfew
hours by an hour to 9pm until 6am.
Egypt
previously signed a $12 billion aid package with the Washington-based IMF in
2016, with the last tranche paid out last year.
previously signed a $12 billion aid package with the Washington-based IMF in
2016, with the last tranche paid out last year.
Since the
2011 revolt that toppled former president Hosni Mubarak, the economy of the
Arab world’s most populous country has sustained multiple shocks caused by
political instability and security issues.
2011 revolt that toppled former president Hosni Mubarak, the economy of the
Arab world’s most populous country has sustained multiple shocks caused by
political instability and security issues.
The
government has imposed harsh austerity measures in recent years to try to
reduce its deficit, including cutting subsidies on fuel and electricity.
government has imposed harsh austerity measures in recent years to try to
reduce its deficit, including cutting subsidies on fuel and electricity.
The
impact of economic reforms has been hardest on the poor, in a country where one
in three live below the poverty line.
impact of economic reforms has been hardest on the poor, in a country where one
in three live below the poverty line.
AFP
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