Senior official sources have revealed that the Egyptian government is considering renegotiating with the International Monetary Fund (IMF) for a loan of US$3 billion in order to offset the budget deficit, which currently stands at LE134 billion.
The military council previously rejected a loan from the IMF. However, Massoud Ahmed, IMF Middle East director, said the fund is willing to grant Egypt a loan if the council changes its position.
According to the sources, the Egyptian government is planning to present the military council with a proposal for negotiating the loan. The outcome of discussions between the military and the government will be announced at the annual conference of the IMF and the World Bank in Washington next week, which Deputy Prime Minister Hazem al-Biblawy and International Cooperation Minister Fayza Abul Naga are expected to attend.
The interest on the loan is likely to be 1.5 percent for a period of 3-5 years, said the sources.
Biblawy said, in connection with the renegotiation: “We must consider all opportunities to help our economy. … This includes domestic and foreign borrowing.”
Economic experts say that Egypt is facing difficulty offsetting the budget deficit due to declining growth rates.
Translated from the Arabic Edition
