Egypt and the International Monetary Fund have reached a staff-level agreement on a $5.2 billion confirmation agreement to mitigate the economic benefits of Covid-19, the Washington-based lender said in a statement on Friday. Finance Minister Marco Midence stressed that the agreement was an exceptional achievement and would allow Honduras access to the funds granted in the midst of the country`s economic and economic reactivation. The agreement “is important at this stage to continue to support market and investor confidence in the Egyptian economy`s ability to cope with the effects of coronavirus and the resumption of these effects, in addition to preserving the benefits of the economic reform programme that has been welcomed by all international institutions,” Egypt`s finance ministry said in a separate statement on Friday. Credit rate. The loan rate includes (1) the Merchant Special Draw Interest Rate (SDR), which has a minimum floor of 5 basis points, and a margin (currently 100 basis points), known as base interest rates, and (2) mark-ups that depend on level and time pending. An increase of 200 basis points out of 187.5% of the quota is paid on the amount of the outstanding. If the credit remains above 187.5 per cent of the quota after three years, this increase will increase to 300 basis points. These increases are intended to prevent significant and prolonged use of IMF resources. The one-year confirmation agreement, submitted for approval by the IMF`s Executive Board, follows the $2.8 billion in emergency aid the North African nation secured last month as part of the Fund`s rapid financial instrument as part of the country`s plan to close its funding gap.

The funding gap is “fully covered” by IMF funding, other multilateral institutions or bilateral agreements, said Deputy Governor of the Central Bank, Rami Abulnaga, in an interview last month with the Saudi television channel Al-Arabiya: “Despite the challenges posed by the pandemic, the authorities have made significant progress in implementing the structural reforms needed to promote strong and inclusive growth. , including to improve governance and improve the business environment.”