The International Monetary Fund (IMF) reached a staff-level agreement on Egypt’s application to take out a loan under the Standby Agreement (SBA) after the Fund granted Egypt a loan of – 2.77 billion under the Rapid Financing Facility (RFI). 19 effects.
In an exclusive interview with Ahram Online, Said Bakhache, Senior Resident Representative of the IMF in Egypt, revealed the measures to disburse the two loans and said the fate of the SBA loan would be decided in the coming weeks.
Bakhache noted that Egypt had made significant progress on the first wave of reforms needed to achieve macroeconomic stability, which has helped put the country on a solid footing for the ongoing crisis, and stressed the need for a second wave of reforms is needed to maintain a strong and inclusive private sector-led growth to further reduce poverty and accommodate the large numbers of newcomers to the workforce expected over the next decade.
What are the RFI loan repayment terms?
The Rapid Finance Facility is part of the IMF’s emergency funding to help its 189 member countries cope with the effects of COVID-19. As you know, this emergency funding is helping countries meet the immediate balance of payments needs arising from the health and economic crisis without having to have a full program in place. In response to the large and urgent funding needs of members related to COVID-19, access restrictions have been increased from 50 to 100 percent of the quota per year and from 100 to 150 percent of the quota on a cumulative basis.
The repayment terms for the emergency funding are quite flexible. For the RFI, payment is due within 3¼ to 5 years of disbursement. https: //www.imf.