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Egypt secures $339m from Arab Monetary Fund

Loan aims to support structural reform in the financial and banking sectors

Egypt has secured a $339 million loan from a pan-Arab lending institution to facilitate structural reform of the financial and banking sector.

Egypt’s central bank released a statement in which it said its governor Governor Hisham Ramez signed the loan agreement on Sunday with the Arab Monetary Fund (AMF).

According to the statement, the loan aims to support structural reform in the financial and banking sectors in order to enhance their soundness and strength, and boost comprehensive and sustainable economic growth.

It also seeks to develop control and governance systems in the banking sector to help it withstand financial and economic shocks, the statement published by Al-Eqtisadi indicates.

The program aims to achieve three main targets: developing the government financial securities depository system, enhancing the banking sector’s efficiency and cementing the role of the credit guarantee company to support the financing of small and medium enterprises.

It’s noteworthy that this loan brings the total value of credit facilities the AMF extended to Egypt to $1.6 billion and the number of loans to 13.

($1 = AED3.67, at the time of publishing)