Egypt’s ongoing Extended Fund Facility (EFF) program will face its fourth review by the International Monetary Fund (IMF) Executive Board on Monday, alongside the Article IV consultation, according to an IMF official.
An EFF provides financial assistance to countries facing serious medium-term balance of payments problems because of structural weaknesses that require time to address. To help countries implement medium-term structural reforms, the EFF offers longer program engagement and a longer repayment period.
“It will also be discussing at the same time Egypt’s request for an RSF, the Resilience and Sustainability Facility. Subject to completion by the Executive Board, the authorities, would have access to $1.2 billion under the EFF. So, under the EFF programme,”Julie Kozack, the Fund’s Communications Department Director said yesterday.
An RSF provides affordable long-term financing to countries undertaking reforms to reduce risks to prospective balance of payments stability, including those related to climate change and pandemic preparedness.
Speaking at a press briefing, Kozack said the size of the RSF would be about $1.3 billion, noting that it will be subject to the IMF Executive Board’s approval .
“Regarding the RSF, like all of the IMF programs, the RSF is also delivered in tranches. So, it is not one lump sum up front. It is a phased program where tranches are dispersed on the basis of conditions being met,” she said.
Earlier, Kozack said the Fund would continue its support for Egypt’s resilience and reform efforts to maintain economic stability.
