The Freedom and Justice Party still rejects a proposed US$3.2 billion loan from the International Monetary Fund, since the government has continued not to answer its questions on the loan’s conditions and how it will be repaid, the party’s economic committee head told Al-Masry Al-Youm.
Abdel Hafez al-Sawy, the head of the FJP’s economic committee, laid out four information requirements of the government in order to gain his party's approval: what are the loans conditions, how it will be repaid, the country’s current financial status and if the cabinet had any alternative domestic solutions for the budget deficit.
In March, Finance Minister Momtaz al-Saeed said the budget deficit was not expected to exceed LE144 billion, or around $24 billion.
On Saturday, Planning and International Cooperation Minister Fayza Abouelnaga said the IMF supports a cabinet-formulated economic reform program, another condition for the loan. She said the program will help the Egyptian economy recovery over the next two years and the country’s main political forces in the country must agree on the loan.
The cabinet’s handling of the issue has been bad enough to make the party reject its policies, Sawy said.
“The Freedom and Justice Party, the one with the parliamentary majority, has never approved the loan. How could the government issue statements about a consensus over the loan?” he asked.
Sawy also denied that the FJP has any ideological biases against international financial institutions, such as the IMF. The party will not approve any loan if it does not participate in its negotiations, he added.
The government has been in ongoing talks with the IMF over the loan since last year. The international lending institution has stipulated that Egypt must reach a political consensus, particularly including the Parliament’s Islamist majority, over the loan before it is approved.
Cairo has sought the loan to fill a deep budget deficit and economy that has deteriorated since the 25 January uprising that broke out early last year.
Translated from Al-Masry Al-Youm
