The Egyptian government is considering an International Monetary Fund (IMF) loan package that was rejected in the past, said Deputy Prime Minister Hazem al-Beblawy on Wednesday.
Egypt reached an agreement with the IMF over a US$3.2 billion loan in June. However, former Finance Minister Samir Radwan rejected the agreement, following the objections of the Supreme Council of the Armed Forces (SCAF).
Beblawy, who is also Egypt’s Finance Minister, visited Washington last month to attend a number of meetings held by the IMF and World Bank. Prior to his departure, he said he was open to any discussions with the IMF.
In a statement to Al-Masry Al-Youm on Wednesday, Beblawi said that Egypt was considering ways to reduce borrowing from local banks. However, he did not elaborate on the issue.
He said the country would not become bankrupt within a six-month period if the current situation continues, but admitted that the economy was going through a very rough patch.
He added that Egypt would be receiving a financial aid package from the UK to improve corporate performance and contribute to next year’s resumption of growth rates.
Bebelawy said the government will maintain a free-market policy, as well as the private sector’s role in development.
Meanwhile, British Ambassador in Cairo James Watt said his country intends to provide a financial assistance package to Egypt, which will be decided after the targeted projects have been identified by the Egyptian government.
He went on to say that the expected package is a “gift” rather than a loan, and that it will be directed towards financing technical assistance provided by the UK to Egypt, which ranges between 10 and 20 million GBP.
Watt pointed out that other British companies were willing to come to Egypt to set up joint ventures with the public sector in the automotive industry, infrastructure projects, and other areas when the political situation stabilizes. He added that British investments in the Egyptian market exceed US$10 billion dollars in 900 companies.
Translated from the Arabic Edition
