IMF Approves $2.8 Billion Loan For Egypt

Kristalina Georgieva, Managing Director of the International Monetary Fund.

Photo credit: IMF/Joshua Roberts, under Creative Commons license

The executive board of the International Monetary Fund (IMF) has approved a $2.8 billion loan to Egypt to help the country avert the harsh economic effects of a coronavirus pandemic, as confirmed by a recent official announcement. Egypt, a country whose economy has been significantly affected by the effects of the coronavirus pandemic, requested for a loan from the IMF to help curtail such effects. The IMF happens to have answered, stating that the "pandemic and global shock pose an immediate and severe economic disruption that could negatively impact Egypt’s hard-won macroeconomic stability if not addressed."

Before the coronavirus pandemic, Egypt's economy had been on the rise, bolstered by an economic reform program also supported by the IMF. With the IMF's loan, one can hope Egypt's resulting economic blow from the coronavirus pandemic will be softened.

In the middle of a coronavirus pandemic, the IMF has provided emergency funding for many countries, including Nigeria, Djibouti, Seychelles, Peru, Kyrgyzstan, Nepal, Kenya, Cameroon and Uganda. The highest amount so far, a $3.4 billion loan, seems to have gone to Nigeria, Africa's largest economy although still a country with a significant poverty rate and economic disparity. Nigeria's economy has been affected by the coronavirus pandemic and also a crash in oil prices globally. Such is the case that the country has resorted to scrapping fuel subsidies to help save cash.

The IMF's recent disbursements to countries have collectively amounted to well over $10 billion. Most of the disbursements went to developing and underdeveloped countries across the globe, a significant number of such countries hailing from the African and South American continents.