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Tuesday, April 2, 2013

The size of IMF loan for Egypt could be changed

IMF's head Christine Lagarde and Egypt's President
Mohamed Morsy

The International Monetary Fund (IMF) which is currently in the ongoing process of negotiations with Egypt over the $4.8 billion financial aid could change the size of the loan, according to the statement of Masood Ahmed, who is Director of Middle East and Central Asia department of IMF. He made this statement during the annual meeting of the Arab Financial Institution and of the Council of Arab Financial Ministers held in Dubai, UAE.

Thus, the size of the IMF loan could be changed and could vary depending on the country’s economical and social needs and requirements, according to Masood Ahmed.

The official delegation of IMF is expected to arrive in Cairo on Wednesday, 3 April, while the technical team will be in Egypt in the middle of the month. The negotiations over the IMF’s financial aid have been held with Egypt since more than year and the signing of the agreement was almost finalized in December 2012, but then the talks have been suspended several times due to political instability in the country and the protests. The talks are expected to be renewed this week.

It is also expected that IMF’s team would also study the current economical situation in Egypt and the country’s needs and also the new economic program of the government. As a result of those studies and negotiations with Egyptians authorities the decision about changing the size of the loan could be also made.

The IMF’s financial aid is considered being very important measure for the restoring of Egypt’s struggling economy and is expected to help to resolve the current financial crisis and to also draw the interests of the foreign investors back to Egypt. Meanwhile the IMF loan remains very controversial issue among Egyptian and is highly criticized by many politicians, economical specialists and average citizens as well. Thus, some of Egyptian activists and groups are planning to hold the protests against the IMF loan on the day of arrival of the IMF’s official delegation.