The International Monetary Fund has received a document outlining Egypt's proposed economic program to be supported by IMF financing and will schedule a mission to Cairo later in March, a fund spokesman said on Thursday.
"We have now received a document that describes in broad terms their economic program," IMF spokesman Gerry Rice told reporters. "In coming days our staff will be studying that document to assess the policies, and … we expect to schedule a mission to Cairo in the second half of March," he added.
Egypt has requested a US$3.2 billion lending program from the IMF to help plug a widening budget and balance of payments deficit. Egypt's economy and government coffers have suffered deeply since the 25 January revolution broke out last year.
Last month, Finance Minister Momtaz al-Saeed said his country expects to sign a $3.2 billion loan agreement with the International Monetary Fund in March, and would receive one-third of the funds immediately upon signing.
Rice explained that Egypt's reform program should be based on an internal vision for priorities, enjoy popular support, drive growth while protecting the poor at the same time, and restore confidence in the Egyptian economy.
He declined to give more details or comment on the need for the various political forces to approve the program, but he did say that the tension between Egypt and the United States over the NGO funding issue would not affect the IMF decision.
“We are a global organization that is not affected by bilateral relations between countries,” he said.
The Egyptian government has committed itself to devising policies of economic reform as a basis for any agreement with the fund, while observers expect that the fund would require the consent of all political forces before granting the loan.
The government of Prime Minister Kamal al-Ganzouri will have to commit to an austerity program and reduce government spending despite demands for more wages and subsidies.
