The Ministry of Finance has confirmed possible reductions in the acceptable quantities of bids on bills and bonds offered in the local currency until the end of the current fiscal year (FY) 2019/2020.

The ministry indicated its keenness to diversify funding sources to reduce the cost of borrowing.

Egypt has received $2.7bn from the International Monetary Fund (IMF), which represents the value of rapid credit financing granted to the Egyptian government.

The funding reflects the confidence international financial institutions have in Egypt’s economy, its credit rating, outlook, and ability to deal with shocks despite the negative repercussions of the coronavirus (COVID-19) pandemic.

Last week, the IMF’s Executive Board announced that it had agreed to lend Egypt $2.772bn through the Rapid Funding Instrument (RFI), to contain the economic and financial impacts of the coronavirus pandemic.

The new agreement is a quick financing tool that allows countries to obtain a financing package from the IMF, which is made available without conditions. It comes in addition to the credit standby agreement, which is a one-year programme that includes tranches disbursed over that period.