IMF calls on Egypt to solve economic problems that led to revolution

IMF calls on Egypt to solve economic problems that led to revolution

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Wed, 16/05/2012 - 12:15
AFP

The International Monetary Fund on Tuesday called on Egypt to “look beyond the short term” and to address the economic problems that led to the outbreak of the revolution.

Meanwhile, talks between the IMF and Egypt over its loan request have been halted with the approach of the upcoming presidential election slated for next week.

In an interview published on the IMF’s website, Masood Ahmed, director of the IMF’s Middle East and Central Asia department, said, “Obviously, there is a range of short-term problems that must be addressed on the economic level, and it is very important to deal with them quickly and reliably.”

“But the real obstacle is to look beyond the short term and address the problems that caused the outbreak of the revolution in Egypt,” he said.

Earlier this year, Egypt requested a US$3.2 billion IMF loan. But failure to reach a political consensus in Egypt had a negative impact on the negotiations.

“There is political chaos,” Ahmed said. “So the big challenge for the Egyptians and the big challenge for the IMF through its support to the Egyptians is to try to find an economic strategy with application opportunities after the government is changed, which could happen within a few weeks,” when the new president takes office.

Edited translation from AFP