The International Monetary Fund (IMF) will impose more stringent conditions on loans to Egypt, a senior Egyptian government official told Al-Masry Al-Youm.
The official said Egypt had previously applied for loans on firmer economic ground, unlike the present situation.
The same official expected that the IMF will now change the terms and interest rates of loans to Egypt. He slammed the current government for its hesitance in applying for the IMF loan, as former Finance Minister Samir Radwan had agreed with the fund on loan terms. The official said the current government’s decision to renegotiate the loan will prompt the IMF to raise the cost of borrowing and impose tougher measures.
The more the government acts belatedly, the government official went on, the more the situation will worsen, citing souring economic conditions, receding foreign reserves and declining foreign investments in Egypt.
Finance Minister Hazem al-Beblawy said the country’s economic indicators are improving, thanks to rising expatriate remittances, surging Suez Canal revenues and increasing tourism.
In an exclusive statement to Al-Masry Al-Youm, the minister attributed the present economic crisis to a lack of liquidity and limited resources.
Earlier this year, the Egyptian government agreed with the IMF on a US$3.2 billion loan, but the ruling Supreme Council of the Armed Forces rejected the move to avoid increasing public debt.
Translated from the Arabic Edition
