What Is An Imf Standby Agreement

The funding gap is « fully covered » by imf funding, other multilateral institutions or bilateral agreements, Deputy Central Bank Governor Rami Abulnaga said last month in an interview with Saudi television channel Al-Arabiya. These criticisms have been less pronounced in recent years, particularly since 2009, when the IMF`s SBA policy was modified to better meet the needs of recipient countries. Greece, which came close to a sovereign debt crisis in 2010 and 2011, may be an exception. The resulting significant reductions in public spending led to mass protests and riots. In this case, there is growing criticism of the requirements for euro membership, as significant financial aid also comes from other euro area countries, not from an IMF confirmation regime. [2] [3] [4] Egypt and the International Monetary Fund have reached a staff-level agreement on a $5.2 billion confirmation agreement to mitigate the economic impact of Covid-19, the Washington-based lender said in a statement Friday. « This agreement is subject to the approval of the IMF`s Executive Board, which is expected to consider Egypt`s request in the coming weeks. » 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. « I am pleased to announce that the Egyptian authorities and the IMF team have reached a staff-level agreement on economic policy, which could be supported by a 12-month standby agreement (SBA). The SBA, which has access requested SDR 3.8 billion (approximately $5.2 billion), supports the authorities` efforts to maintain macroeconomic stability in the midst of the Covid-19 shock, while pursuing major structural reforms. This will ensure Egypt`s progress over the past three years and provide a solid medium-term basis for sustainable recovery, stronger and more inclusive growth and job creation.