CAIRO, April 29 (Xinhua) -- Egypt's Prime Minister Mostafa Madbouly said on Wednesday that the government's request to the International Monetary Fund (IMF) for a new financial package will not affect the citizens' daily lives.
"Egypt has asked the IMF for financial support on Sunday to help it deal with the coronavirus crisis and will begin talks with it within days," Madbouly said, according to a cabinet statement.
He reiterated that comprehensive package of financial support "would help strengthen confidence in the Egyptian economy, make further progress to protect the most vulnerable and provide the basis for a strong economic recovery."
He stressed that "the request is only related to structural reforms to maintain gains and achievements made by the national economy."
The financial support request raised people's worries since a previous IMF loan necessitated the government to take some measures such as subsidy cut and float of currency.
The COVID-19 crisis has shut down Egypt's tourism industry, which accounts for 12 to 15 percent of the GDP, after the country closed its airports in March.
"The one-year financial support request is part of the country's precautionary measures to promote its capabilities to challenge the COVID-19 deteriorations," Waleed Gaballah, professor of financial and economic jurisdictions at Cairo University told Xinhua.
He said the move will contribute to reviving the economy faster and preserve the economic reform's gains that were affected by the virus outbreak.
The expert explained Egypt has benefited from the economic reforms, started in 2016, and enjoys enough financial management experience that qualified the North African country to stand against further economic shocks.
Gaballah expected that Egypt would seek around 3 to 4 billion U.S. dollars from the IMF. Enditem
