The International Monetary Fund on Tuesday said it expects to provide an additional $1.6 billion in financing to Egypt after its executive board approves the funding in coming weeks.

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Washington:

The IMF said its staff reached agreement with Egyptian authorities about the additional funding after a second and final review of Egypt’s economic program and a $5.2 billion 12-month stand-by arrangement.

“Egypt’s economy has shown resilience, with the impact of the COVID-19 crisis mitigated by the authorities’ swift, and balanced policy response,” the IMF said in a statement.

It said Egypt’s fiscal and monetary policies should continue to support the economic recovery, and called for additional efforts on the country’s economic reforms.

The IMF said it was forecasting economic growth of 2.8% in fiscal year 2020/2021, and 5.2% in FY2021/22.

The IMF said Egypt met all its structural benchmarks, including steps to reform fiscal transparency and governance, social protection and improve the business environment.

But more efforts were needed to encourage exports by further reducing trade impediments and building a greener economy.

“Deepening and broadening structural reforms is critical to solidify the recovery, address post-COVID-19 challenges, strengthen buffers, and ensure higher and more inclusive growth,” it said.