IMF Head: $14.5 bn Financial Package to Egypt

Head of the International Monetary Fund (IMF) team Andreas Bauer who reached a tentative agreement with Egypt on the $4.8 billion loan said the loan will be used to support the economic program of the government till the fiscal year 2013/2014. He added the request by Egypt to receive the loan will be referred to the executive council of the fund for endorsement during the coming few weeks. He added in a statement of the IMF at the end of the IMF mission in Cairo, the Egyptian government has complete a national program for economic recovery, dealing with state budget and balance of payment deficit as well as creating new work opportunities and socially balanced growth rate.

Bauer added the financial reform is one of the main pillars for the economic reform program as the government would lower financial waste and cut on expenditure including that on energy and to guarantee that subsidy would reach those who deserve it. The government intends to broaden the taxation sales base and would resort to progressive tax for income. Bauer added that the $4.8 billion loan to Egypt is part of $14.5 billion financial package in the form of loans and deposits with preferential terms for supporting Egypt's economy.