EGYPT – The Government of Egypt has secured a US$639 million from the Arab Monetary Fund to help support its economy amid a crisis occasioned by the unrelenting COVID-19 pandemic.

A report by Egypt Today revealed that the loan agreement was signed by Minister of International Cooperation, Rania Al-Mashat, and Chairman of the Fund Abdul Rahman bin Abdullah Al-Hamidi.

The Arab Monetary Fund said that it is currently studying requests from a number of member states seeking to take advantage of its financial resources in order to ensure the provision of support as quickly as possible.

The Arab focused financial institution also notes that its working with member states to find ways in which it can meet financing needs and enhance their financial positions to meet various challenges, especially in such times.

The decision by the Arab Monetary Fund to support Egypt financial follows a recent decision by Fitch Rating to mantain Egypt’s long-term foreign and local currency issuer ratings at B+ with a stable outlook.

Finance Minister Mohamed Maait said that Fitch Ratings’ decision to keep Egypt’s ratings at B+ with a stable outlook reflects again the confidence of international institutions in the country’s economy.

He attributed the positive ratings to the country’s ability to deal with the novel coronavirus (COVID-19) crisis.

Maiit explained that Egypt was the only country in the Middle East and Africa, whose credit rating was maintained with a stable outlook by S&P Global Ratings, Moody’s and Fitch.

Fitch’s move also comes in recognition of the government’s efforts to introduce a package of structural reforms to increase growth rates and encourage the private sector’s participation in the national economy.

Fitch while releasing its results said that “We currently view the shock as a material but possibly temporary disruption to what were previously strong positive trends,”.

“The reforms in recent years have provided Egypt with a degree of flexibility to weather this shock at its current rating,” Fitch said.

 “Nonetheless, the pandemic still presents risks to Egypt’s credit metrics depending on the duration of the global health crisis,” it added.

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