The International Monetary Fund (IMF) cancelled a planned January visit in Cairo to negotiate a loan of US$3.2 billion, an official at the International Cooperation Ministry has said.
The IMF attributed the decision to Egypt’s credit rating, negative economic projections, instability, political unrest, and the central bank’s reluctance to devalue the Egyptian pound.
Meanwhile, Prime Minister Kamal al-Ganzouri on Monday met with ambassadors of the G8 countries. “They promised to lend Egypt and Tunisia $35 billion, but we have not yet seen it,” Ganzouri said.
Foreign Minister Mohamed Kamel Amr said the meeting addressed Egypt’s urgent economic needs, adding that the $35 billion would be a loan and not a grant.
International Cooperation Minister Fayza Abouelnaga hoped for faster economic aid from Arab countries in order to help Egypt overcome its budget deficit.
The Arab Monetary Fund has lent Egypt a new loan of $270 million at an interest rate of 1.69 percent to be paid over 4.5 years, with a grace period of two years.
Also, the Egyptian government said the Abu Dhabi Sovereign Fund on Sunday agreed to grant Egypt $750 million.
Translated from Al-Masry Al-Youm
