The International Monetary Fund has reiterated its support for Egypt in face of increasing economic challenges.
Masood Ahmed, Director of the IMF’s Middle East and Central Asia Department, said his talks on Monday with Egyptian President Mohamed Morsy, Prime Minister Hesham Qandil and other officials have been fruitful.
Ahmed said Egyptian officials “expressed their firm commitment to articulate and implement a homegrown macroeconomic program that enjoys broad support and addresses these [economic] challenges. The authorities also reiterated their request for financial support from the IMF for such a program.”
“The IMF remains committed to support Egypt in addressing its increasing economic challenges and moving to a more inclusive model of economic growth through a socially-balanced homegrown program. I am encouraged by the authorities' commitment to take steps necessary to achieve fiscal and external sustainability,” the statement said.
He said in the statement that an IMF technical team would visit the country within the next few weeks to resume discussions over the IMF’s financial support to Egypt.
Morsy had received Ahmed at his presidential office on Monday for talks over a US$4.8 billion loan Egypt had requested from the fund to nourish its flailing economy and bridge a widening budget gap expected to reach LE200 billion. The approval of the loan would encourage other donors to proceed with intended financial packages to Egypt.
Morsy, in an interview with CNN on Monday, said procedures for the implementation of the loan would be completed soon, and stressed that Egypt rejects any conditions related to the loan.
Meanwhile, Minister of Planning and International Cooperation Ashraf al-Araby told the privately owned satellite channel Al-Hayat that negotiations on reducing Egypt's debt by $1 billion are still ongoing.
Araby added that the IMF still has reservations about the government's plan to increase sales taxes on some goods.
