Talks with IMF to be Completed Before the End of Year

Talks with the International Monetary Fund (IMF) on the loans worth $4.8 billion will begin in mid-September and is expected to be completed before the end of the year, Planning and International Cooperation Minister Ashraf al-Arabi said on 25/8/2012. The Egyptian government is not committed to withdraw all the amount of the loan, worth $4.8 billion, from the International Monetary Fund (IMF), even if it succeeded in securing the loan, Arabi added.

The main aim of the loan is to obtain an international certificate to support the economy in the future and increase the investors' confidence, he added. The loans' conditions will be declared, if an agreement is reached with the IMF, he said, adding that it is not yet clear if the amount of the loan would be $3.2 billion or will be increased to $4.8 billion at Egypt's request, he added.

Egypt has not started implementing the economic reform program, he said, adding that negotiations are underway in this regard with the IMF. The economic reform program will continue whether Egypt obtained the loan or not, he said, adding that the program includes activating the ten-year plan to double the national income during 2012-2022 along with promoting local and foreign investments in Egypt. The initial budget deficit in this fiscal year stands at LE135 billion, he noted.