PM: IMF loan must support Egypt's poor

PM: IMF loan must support Egypt's poor

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Thu, 08/11/2012 - 20:57

Egypt will not accept a US$4.8 billion International Monetary Fund loan unless it is consistent with economic reform policies that support Egypt’s poor, Prime Minister Hesham Qandil said Thursday on his Twitter account.

Egypt is negotiating with the IMF for a much-needed loan to reduce its budget deficit, provided the government secures popular consensus on the loan and develops an overall economic reform plan.

Cabinet spokesperson Alaa al-Hadidy said Thursday the two sides had made progress in the negotiations by agreeing on increasing resources for social development, boosting foreign and domestic investment and supporting foreign reserves.

“We might reach a tentative agreement soon,” he said.

An IMF technical team has been in Cairo since 31 October to negotiate the loan and the talks are expected to last two weeks, according to Reuters.

Edited translation from Al-Masry Al-Youm