In a report released on Tuesday, the IMF said that the Egyptian banking system is liquid and well capitalized, with strong profitability and asset quality.
The IMF issued a report on Tuesday on the files related to Egypt's obtaining of an emergency financial assistance of dlrs 2.77 billion to meet the urgent balance of payments needs stemming from the outbreak of the COVID-19 pandemic.
This came after holding a number of online meetings between the members of the IMF mission and representatives of CBE from June 15 until June 29.
The system was liquid, profitable, and well capitalized heading into the crisis, but risks around banks’ loan portfolios, capital costs, and profitability have increased due to the economic slowdown.
IMF clarified that this percentage came as the global recovery is now expected to be more gradual and domestic activity is projected to remain weak for longer.
This expectation is also implied on large net tourism exporters, such as Costa Rica, Greece, Morocco, New Zealand, Portugal, Spain, Sri Lanka, Thailand, and Turkey.
Dame Minouche Shafik is the director of London School of Economics (LSE).
Georgieva said the Egyptian state acted “very swiftly” once the coronavirus pandemic started to protect people and therefore protect the economy.
The US department stated that Beblawi is immune against federal lawsuits due to his position at the IMF.
The latest projection is 2 percentage points lower than the fund's April estimate, the IMF said in its latest Middle East and Central Asia Economic Outlook.
Ramakrishnan added that the IMF supports Egypt in its efforts to mitigate the coronavirus economic fallout on the most affected sectors.
Abu El Naga clarified that the first tranche worth $2 billion.
IMF said it expected the global economy to shrink 4.9 percent this year — a sharper contraction than the 3 percent it predicted in April.
In its World Economic Outlook for June, the fund expected Egypt and China to achieve a positive growth in 2020 despite economic challenges posed by the novel coronavirus pandemic.
This decline in growth in 2020 is expected to be followed by a partial recovery, with the growth seen at 5.4 percent in 2021.
IMF financing will provide some support for Egypt's foreign reserves and portfolio flows may be stabilizing.
On the $6 billion financing package expected from the IMF, Deputy Governor of the Central Bank of Egypt (CBE) said that negotiations haven’t ended yet.
The loan, which will be paid back over a period of five years, comes as part of the the Rapid Financing Instrument (RFI) program.
The Executive Board of the International Monetary Fund (IMF) approved Egypt’s request for emergency financial assistance of SDR 2,037.1 million ($2.772 billion)
The International Monetary Fund on Monday said its executive board approved $2.77 billion in emergency financing to help Egypt.