BankingFinance

Arab Monetary Fund to Extend $615.8 Mn Loan Support for Banking Sector Reforms in Egypt

Arab Monetary Fund extends $615.8 million loan to support reforms in the financial and banking sector in Egypt. The sum extended within the framework of the structural adjustment facility in the financial and banking sector is equivalent to the amount of Arab accounting Dinar 153.475 million. The loan supports a reform program aiming at enhancing the efficiency of the financial and banking sector in Egypt.

The program supported by the loan will include enhancing the soundness and raising the efficiency of the payment systems infrastructure, enhancing financial inclusion and sustainability, strengthening the supervisory and regulatory framework in the financial and banking sector, expanding the scope of financial technologies and strengthening the protection of financial services consumers.

The agreement was signed on Tuesday, July 25, 2023, by H.E. Hassan Abdalla, Governor of the Central Bank of Egypt, on behalf of the Arab Republic of Egypt, and H.E. Dr. Abdulrahman A. Al Hamidy, Director General Chairman of the Board of Executive Directors of the AMF, on behalf of the AMF.

On this occasion, H.E. Hassan Abdalla, the Governor of the Central Bank of Egypt expressed his appreciation for the AMF’s continued support and the important role it plays in strengthening the ability of Arab countries to maintain economic and financial stability and face different challenges. 

In turn, H.E. The Director General of the AMF valued the efforts pursued by the Egyptian government to implement economic and structural reforms, which contribute significantly to the development of the Egyptian economy and sustaining an enabling environment for the domestic and foreign business sectors. He further stressed on the AMF’s keenness to continue the fruitful partnership with the Egyptian government to help the country address different challenges in the most effective way.

The AMF is currently studying financing requests from other member countries, and is processing the requests through expeditious procedures, in order to provide support as quickly as possible, so that the borrowing member countries can meet financing needs and enhance their financial positions to face various challenges, especially in such times.

The AMF supports the efforts of its member countries to implement economic and structural reforms, in face of various challenges, through a number of means, including financing the needs of the balance of payments and public budgets, and financing trade through its affiliate the Arab Trade Financing Program. Additionally, it supports policy dialogue and consultation on economic, financial and development issues via its various forums and activities, whilst providing technical advice to member countries in the field of economic, fiscal and financial policies. It also provides training for government officials in member countries through its Institute for Training and Capacity Building. 

Moreover, within the framework of its endeavours to support regional financial integration, encourage inter-Arab trade and investments, and link with the main trading partners of Arab countries, the AMF completed the establishment of the Arab Regional Payments Clearing and Settlement Organization “Buna” Platform with the aim of encouraging the use of Arab currencies in inter-financial and investment transactions, and contributing to strengthening compliance in clearing and settling these transactions. It is worth noting that the “Buna” Platform is in line with relevant international standards and has international acceptance, as it is seen as a model for alignment with the G20 directions to enhance cross-border payments.

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Savita V Jayaram

A senior journalist, writer and now an Editor-in-Chief at Business Tabloid publications. Having worked with Network18, IBTimes, WAN-IFRA and many other international publications of repute in her career, she possesses more than a decade experience in business journalism. She has been reporting on various industries namely pharma, chemicals, retail, technology, HR & management across APAC, the Middle East, UK and the US markets. She is passionate about reading and traveling on weekends.

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