Egyptian Political Groups Demand Halt of IMF Loan Talks

Several Egyptian political groups sent a letter to Egyptian Prime Minister Hisham Qandil and International Monetary Fund (IMF) head Christine Lagarde rejecting ongoing negotiations for a proposed $4.5 billion loan. The letter, released by 18 mostly left-leaning groups, condemned the "lack of transparency" that they say has characterised the government's ongoing loan talks with the global financial institution. The letter's signatories go on to demand that Cairo immediately halt all negotiations with the IMF. In mid-October, an IMF delegation visited Cairo to work out the details of the proposed $4.5 billion loan agreement. Last week, Egyptian Finance Minister Momtaz El-Said said he expected the deal to be signed by January of next year. Few details about the negotiations have been made public, however. Nor has the economic programme prepared by the government and presented to the IMF delegation.

Since negotiations began, the government has pledged to engage in a national discussion regarding the loan, its terms and its potential consequences. The letter's signatories, however, say that such discussions are insufficient. Currently, President Mohamed Morsi, Egypt's first-ever democratically-elected head of state, holds all executive and legislative powers. Ambiguity over the conditions of the proposed loan has led to considerable speculation. Critics say that, by dealing with the IMF, Egypt's new government is "continuing the old regime's economic policies, particularly as they relate to the incursion of debt." The letter's signatories include the Strong Egypt Party, the April 6 Youth Movement, the Egyptian Centre for Economic and Social Rights, the National Independent Federation of Workers' Syndicates and the Egyptian Popular Current, among others. Signatory groups intend to stage a demonstration on Monday afternoon outside the Egyptian Stock Exchange in downtown Cairo to protest the ongoing loan talks.