Egypt has requested assistance from the International Monetary Fund (IMF) to implement a comprehensive economic program amid the crisis around Ukraine, Egyptian government spokesman Nader Saad said on Wednesday.
"In light of current events, Egypt has sent a request to the IMF to begin consultations on a new lending program aimed at supporting the state in implementing a comprehensive national economic reform plan," he explained. - "This program may include additional financing for Egypt." At the same time, the official did not specify how much financial assistance could be discussed.
As noted in the released statement of Celine Allard, head of the IMF mission in Egypt, the measures proposed by the IMF will mitigate the impact of the global situation and the consequences associated with the Russian special operation in Ukraine on the Egyptian economy, "protect the vulnerable populations, maintain the sustainability of Egypt and medium-term growth prospects.
On March 21, Egypt's central bank raised its discount rate by 1pc for the first time since 2017 - from 8.75% to 9.75% - in an attempt to overcome inflationary pressures. Amid the regulator's decision, the exchange rate of the Egyptian pound against the dollar fell by 18%, reaching its lowest value in five years.
Cairo received a loan of about $12 billion from the IMF for economic reforms in 2016-2019. The Arab republic is currently implementing the second phase of structural reforms in the public sectors of the economy.
Last year, two more loans totaling $8 billion were provided to Egypt through different financing mechanisms to eliminate the negative consequences of the coronavirus pandemic.
GSV "Russia - Islamic World"
Photo: Creative Commons
Based on materials from TASS