(Ecofin Agency) - The International Monetary Fund announced in a Dec 18 statement it has approved the disbursement of $1.6 billion in favor of Egypt. This is the second financing as part of a $5.2 billion stand-by deal concluded with the country last June 26.

The 12-month facility seeks to support the Egyptian government’s economic reform plan during the Covid-19 crisis that has hard hit the economy. “The Egyptian authorities have managed well the COVID-19 pandemic and the related disruption to economic activity. The proactive measures taken to address health and social needs and to support the sectors most directly affected by the crisis have helped mitigate the economic and human impact,” said Antoinette Sayeh (pictured), IMF deputy managing director.

“The government’s structural reform agenda is appropriately ambitious. Sustained progress on structural and governance reforms is essential to foster a higher, greener, and more inclusive private-sector-led growth,” she added.

This new disbursement brings to $3.6 billion the total amount granted by the IMF under this stand-by deal. The institution projects the country to be one of the few on the continent to maintain positive growth this year.

Moutiou Adjibi Nourou