Deal between IMF & Egypt Soon

Governor of the Central Bank of Egypt (CBE) Hisham Ramez said on 22/4/2013 that a deal between the Egyptian government and the International Monetary Fund (IMF) billion is expected to be finalized soon.

He added that the Egyptian delegation detailed developments and steps being taken by the Egyptian government to achieve economic reforms necessary for securing the proposed IMF loan, pointing out that IMF Managing Director Christine Lagarde’s response to such measures was “positive”.

Ramez said that he had clarified during the meeting that Egypt’s reform program sought to help “restructure the country’s economy at a time when the country suffered through a series of tough conditions not currently being faced by any other nation”.

He noted that it would be necessary to take into account all factors when undertaking reforms, including social factors and the ease with which such a program could be implemented.

He added: “The delegation clarified that the goal of Egypt’s economic reform program would be to decrease the country’s budget deficit using two primary means: first, by efficiently restructuring the country’s spending program; and, secondly, by making sure that subsidies make their way to those who truly need them.”

He added that by the end of 2013 the country’s budget deficit would total between LE 190 billion and LE 200billion, acknowledging that such deficits inevitably lead to increased inflation “which will affect Egypt’s poor more than anyone else”.

Ramez went on to say that inflation should be a top priority that the government should work to overcome. He said that recent statistics released in March placed Egypt’s foreign currency reserves at LE 13.5 billion, adding that this number was expected to steadily increase with the implementation of the country’s economic reform program.