Riyadh, Saudi Arabia – Saudi Arabia has extended the term of $5 billion deposit for Central Bank of Egypt as part of its effort to enhance the North African country’s economic stability of Egypt and its deal with International Monetary Fund.
The package would allow Egypt to open ‘‘new financing channels with regional and international organizations” and help the completion of a preliminary $3 billion agreement the Middle East’s most populous country reached with the IMF in October, the state-run Saudi Press Agency said.
The war in Ukraine and the coronavirus pandemic have hit the Egyptian economy hard. Russia and Ukraine supplied Egypt much of its wheat requirement. Following the Ukraine war, Egypt has struggled to combat surging inflation, which rose to 16 percent in October.
Egypt’s agreement with the IMF last month aims to tackle Egypt’s inflation problem and restructure its ailing economy. The agreement saw Egypt’s government announce a series of immediate economic reforms including a hike in its key interest rates and a shift towards a flexible exchange rate.
Egypt received a $12 billion bailout from the IMF in 2016.
Saudi Arabia and the United Arab Emirates have also come to the aid of Egypt, injecting billions of dollars into the country to shore up its economy.
