The Arab Monetary Fund decided to grant Egypt a new loan of USD 615.8 million to promote its banking sector reforms, which gave the country’s financial industry a further boost.
The program, according to the AMF, aims to boost economic inclusion, increase payment system efficiency, and fortify the regulatory environment in the banking and financial industries.
It hopes to do this by broadening the application of financial technologies and enhancing consumer protection.
Hassan Abdalla, the governor of the Central Bank of Egypt, and Abdulrahman Al-Hamidy, the director general of the AMF, signed the agreement on July 25.
Abdalla emphasized that the fund helps Arab nations face sectoral problems and maintain economic and financial stability.
Al-Hamidy appreciated the efforts made by the Egyptian administration to carry out structural and economic changes. He claimed that these changes helped the economy grow while also enabling it to survive in domestic and international markets.
Additionally, he emphasized that the Arab Monetary Fund is eager to keep up their “fruitful collaboration” with the Egyptian government in order to assist that nation in efficiently addressing its various problems.
The 22-member AMF said in a press release that it is now reviewing financial requests from other member nations. It further stated that in order to give assistance as soon as possible, the fund is processing the petitions using “expeditious procedures.”
The method would assist the borrowing member countries in meeting their funding needs and strengthening their financial positions, according to the press release.
The Arab Monetary Fund also stated that it provides consultation on economic, financial, and development concerns and encourages policy debate among its member governments. Additionally, it offers the member states technical guidance on monetary, fiscal, and financial issues.
The statement also mentioned that the Arab Monetary Fund provides training for government employees in member nations through its Institute for Training and Capacity Building.
According to a Morgan Stanley analysis published in March, Egypt’s needs for external financing are impeding its economic growth and could limit its medium-term expansion.
According to the analysis, Egypt has good prospects for medium-term growth, but the significant external finance requirements will have an impact on the macroeconomic outlook.