International Monetary Fund (IMF) Managing Director Kristalina Georgiev said Wednesday that the anticipated loan program for Egypt is to support the country’s social protection system amid rising food and energy prices in the wake of Russia’s war in Ukraine.
During her opening remarks at the annual meetings of the IMF and the World Bank Group, Georgieva said that economic conditions in Egypt were getting worse amid ongoing overlapping crises, including the war in Ukraine.
Georgieve also said that existing impacts of COVID-10 pandemic had already led to the rise of commodity prices.
“We had a very successful experience with Egypt in previous programs. The new program will focus to protect the country’s economy against the ongoing setbacks caused by the war in Ukraine and to ensure vital social protection in the country,” aharmonline news agency quoted Georgieva as saying.
On a global level, Georgieva said that the Ukraine war coming on the heels of the pandemic “is like being hit by another storm before we have recovered from the last one.”
“The result is a massive setback for the global recovery. Yesterday (Tuesday), we reduced our global growth forecast to 3.6 percent for both this year and 2023 — with downgrades for 143 countries. This is caused largely by Russia’s invasion of Ukraine and the shock waves it has sent around the world,” Georgieva added.
Georgieva further went on saying that the war has accelerated inflation and increased food and fuel prices, which represent a clear and present danger for many countries.
Georgieva hoped that war would end immediately as it would directly put a positive impact on the global recovery from fragile economy situations.
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