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Wednesday, August 15, 2012

IMF’s Christine Lagarde will visit Egypt on 22 August

Momtaz Al-Saeed, Egypt's Finance Minister

Christine Lagarde, the Managing Director of the International Monetary Fund (IMF) will visit Egypt on 22 August, according to the statement of IMF.
Egyptian authorities invited Christine Lagarde to Cairo for the ongoing negotiations over the financial loan which Egypt is seeking for restoring its economic situation. Lagarde is expected to meet the new Egyptian government and Egypt’s Minister of Finance Momtaz Al-Saeed.
The negotiations over the need of the international financial help for Egyptian economy have been held almost during the year. The authorities defined the emergency funding as $ 3.2 million, nut the talks didn’t bring any result and the authority didn’t reach the consensus as some political powers were calling for refusal of the IMF financial support.
The ongoing negotiations over the financial loan for Egypt are expected to be addressed during Christine Lagarde’s second visit to Egypt since she was appointed as a Managing Director of Washington based IMF in July 2011. Egypt’s Minister of Finance Momtaz Al-Saeed also said that Egypt will discuss the possibility of a bigger than it was expected before loan. It is expected that the financial loan for Egypt will be increased to $ 4.8 million.
Christine Lagarde, Managing Director of IMF
In addition to that, Egypt’s Finance Ministry also asked United Stated for $ 500 million grant to support the Egyptian budget.
Egypt’s economic situation remains difficult and critical and the financial situation significantly worsened after 18-day uprising in 2011 that toppled Hosni Mubarak. The country needs the outside financial assistance for recovery of the economy, and the visit of IMF’s Lagarde and negotiations over the loan will be of great importance for Egypt.