## Arab Republic of Egypt: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt

_IMF Staff Country Reports, September 1, 2020_

## Source details

**Canonical URL:** [Arab Republic of Egypt: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt](https://www.imf.org/en/publications/cr/issues/2020/09/01/arab-republic-of-egypt-request-for-purchase-under-the-rapid-financing-instrument-press-49724)

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## Bibliographic details
- Published: September 1, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513556093.002

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### Summary
- The COVID-19 pandemic has drastically disrupted people’s lives, livelihoods, and economic conditions.
- Growth is expected to slow considerably in both 2019/20 and 2020/21 as tourism is at a standstill and domestic activity is expected to significantly slow.
- The external accounts are expected to deteriorate from portfolio outflows and the shock to tourism and remittances, resulting in an urgent balance of payments need.

### Macroeconomic impact and channels
- Tourism: tourism is at a standstill, contributing materially to the expected slowdown in growth in 2019/20 and 2020/21.
- Domestic activity: domestic activity is expected to significantly slow, reinforcing the growth contraction.
- Portfolio flows: portfolio outflows are expected to worsen the external position.
- Remittances: shocks to remittances are cited as a key channel for external deterioration.

### Balance of payments and financing need
- The report highlights an urgent balance of payments need driven by:
  - portfolio outflows,
  - the shock to tourism,
  - the shock to remittances.

### Subjects and keywords
- Subject: COVID-19, Credit, Currencies, Debt service, External debt, Health, Money, Public debt, Revenue administration
- Keywords: balance of payments gap, COVID-19, CR, Credit, debt, Debt service, debt sustainability assessment, Egypt, executive board discussion, fund GRA credit, Global, hard-won macroeconomic stability, investor confidence, ISCR, support

*International Monetary Fund. Middle East and Central Asia Dept. "Arab Republic of Egypt: Request for Purchase Under the Rapid Financing Instrument-Press Release; Staff Report; and Statement by the Executive Director for the Arab Republic of Egypt", IMF Staff Country Reports 2020, 271 (2020).*

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_Source: https://www.imf.org/en/publications/cr/issues/2020/09/01/arab-republic-of-egypt-request-for-purchase-under-the-rapid-financing-instrument-press-49724_