The $5.4 billion Stand-By Arrangement (SBA) loan from the International Monetary Fund (IMF) to support the Egyptian government in the wake of the coronavirus pandemic has achieved its main objective, the IMF said yesterday in the SBA's ex-post evaluation (EPE) report.
"The SBA achieved its primary objective of maintaining macroeconomic stability and that policy implementation was broadly in line with program objectives … [and] quantitative program targets were comfortably achieved," the report read.
The EPE report added that the focused structural reform agenda supported by the SBA was fully executed.
The report also showed that the Egyptian authorities exhibited a strong track record of implementing funding programs.
However, the IMF's executive directors noted Egypt's remaining "vulnerability from a high public debt burden," emphasizing that decisive progress on structural reforms is needed to strengthen the economy and improve governance.
Egypt has received a total of roughly $5.4 billion under the one-year loan agreement signed in June 2020.
About $2 billion was received from the IMF in July 2020, followed by nearly $1.7 billion in December 2020 and then a final tranche of $1.7 billion in June 2021.
The loan was earmarked for public spending, including health care, and also helped keep unemployment rates under control.