Egypt in talks with IMF for second tranche of financial support - official

Egypt is in talks with the International Monetary Fund for a second bundle of financial support after receiving nearly $2.8 billion in emergency financing, the central bank deputy governor said on Wednesday.

Asked about a Bloomberg News report that Egypt would seek a further $5 billion from the IMF and $4 billion from other sources for a total of $9 billion, Rami Aboul Naga told Al Arabiya news channel that the number was close to that figure. Egypt said on Tuesday that it had received $2.77 billion through an IMF Rapid Financing Instrument designed to help close a gap in its balance of payments as the new coronavirus outbreak takes its toll on the economy.

It is seeking a further tranche of loans under an IMF Stand-By Arrangement. The pandemic has brought tourism in Egypt to a standstill, triggered major capital flight, and threatened remittances from Egyptian workers based abroad.

Egypt's foreign reserves dropped to $37 billion at the end of April from more than $45.5 billion two months earlier. According to Aboul Naga, the country currently has enough reserves to cover seven months' worth of imports.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)