The board of the International Monetary Fund on Friday approved the release of the second tranche of aid valued at $1.67 billion for Egypt, saying public debt and Covid-19 threatened its economic recovery.

In June, the board approved a one-year, $5.2 billion financing package for Egypt. With the latest disbursement, more than $3.6 billion will have been released.

"The Egyptian authorities have managed well the Covid-19 pandemic and the related disruption to economic activity," Antoinette Sayeh, the IMF deputy managing director, said.

"There are still risks to the outlook particularly as a second wave of the pandemic increases uncertainty about the pace of the domestic and global recovery.

"The high level of public debt and gross financing needs also leave Egypt vulnerable to volatility in global financial conditions."

The IMF carried out a virtual mission to Egypt last month and then announced an agreement in principle for the release of the second tranche, which has now been approved by the board of directors.