Finance minister: Negotiations with IMF resumed for $3.2 billion loan

The government is in contact with the International Money Fund to resume negotiations on a US$3.2 billion loan to Egypt, Finance Minister Momtaz al-Saeed said Sunday.

In a joint press conference with Local Development Minister Osama Saleh after a Cabinet meeting of economic officials, Saeed stressed that the goal is not the loan itself, but a certificate allowing international institutions to give Egypt grants and loans, thereby reflecting confidence in the Egyptian economy.

The minister expected that the IMF managing director Christine Lagarde will visit Egypt soon to resume negotiations with Egyptian officials for the loan. Negotiations were put on hold in May due to lack of political consensus on the loan within Egypt.

Cabinet members also discussed other ways to ensure stability, attract investment and provide employment opportunities.

Saeed said that the meeting discussed a range of measures to reduce the unemployment rate, which is currently 12 percent.

Saleh stressed that attracting investment is the biggest challenge. He described investment as a national — not a ministerial — plan, since it is the only way out for Egypt.

Saleh added that a number of procedures to facilitate investment will be discussed this week before being adopted next week.

Additionally, the meeting addressed the government plan aiming to push the development process forward.  The growth rate during the current fiscal year is expected to reach about 1.8 percent, and 3.5 percent in the new fiscal year.

The finance minister said that the Cabinet also discussed recovering funds smuggled out by former Mubarak regime officials, noting that efforts are being made in coordination with the Justice Ministry to recover these funds quickly.

Edited translation from MENA

Related Articles

Back to top button