Archive for IMF mission

We rejected an IMF request to devalue the pound by 20%, says official

by admin
March 28th, 2012

A senior government official said Monday that the government rejected a request by the International Monetary Fund to devalue the pound by 20 percent to stand at its real value, as the Central Bank continues to support the local currency by pumping liquidity from foreign reserves.

The official, who spoke to Al-Masry Al-Youm on condition of anonymity, explained that the IMF request would push the dollar up from its current rate of LE6.3 to LE7.5. 

The official explained that submission to this request could lead to a wave of buying dollars in Egypt, which may push the dollar to a rate of LE10.

He still stressed the need for the US$3.2 billion loan from the fund to offset the budget deficit, in addition to a loan of US$1 billion from the World Bank, and yet another loan of $500 million from the African Development Bank.

The official said that the Muslim Brotherhood obstructs borrowing from international financial institutions, although it is aware of the urgent need for funds after the economy lost more than $20 billion from the foreign reserves.

Meanwhile, Minister of Planning and International Cooperation Fayza Abouelnaga said an IMF mission is arriving in Cairo on Tuesday for a third round of negotiations over the loan.

The International Monetary Fund said on Thursday an IMF team had fruitful talks with authorities in Egypt last week that could lead to an IMF loan. IMF spokesperson David Hawley rejected on Thursday some media reports that the IMF mission and Egypt had failed to agree on a program.

Egypt's economy has suffered dramatically after a popular uprising a year ago toppled President Hosni Mubarak. Egypt had spurned an IMF loan last year but has since changed its mind amid a stalling economy.

The Muslim Brotherhood, the country's largest political force, on Tuesday held off from backing a request for an IMF loan, urging more government transparency.

Translated from Al-Masry Al-Youm

Tags: , , , , , ,
Categories Egypt Economy
Comments (0)

IMF says talks in Egypt were ‘productive’

by admin
March 22nd, 2012

The International Monetary Fund said Thursday an IMF team had fruitful talks with authorities in Egypt this week that could lead to an IMF loan.

"The mission had productive talks with the authorities and key political parties in parliament," IMF spokesman David Hawley said at a regularly scheduled news briefing.

"They've been there for the past three days to lay the groundwork for the return of the technical team that can continue work on Egypt's economic program which, in turn, could be supported by the Fund," he said.

Egypt's economy has suffered dramatically after a popular uprising a year ago toppled longtime strongman Hosni Mubarak.

Egypt had spurned an IMF loan last year but has since changed its mind amid a stalling economy.

Hawley, the IMF spokesman, rejected some media reports that the IMF mission and Egypt had failed to agree on a program.

The IMF mission "was intended to meet with key stakeholders in the country … it included political and parliamentary leaders," he said.

"This is to make sure that if and when a program is agreed that there is a clear understanding on both sides about the support needed for implementing policies."

The Muslim Brotherhood, the country's largest political force, on Tuesday held off from backing a request for an IMF loan, urging more government transparency.

The Islamist party said in a statement that the military-controlled government "has not yet submitted a plan of economic measures relating to the loan" and did not say "how this loan will be used, or how it will be paid off."

In late February, the official Egyptian newspaper, Al-Ahram, reported that Finance Minister Mumtaz al-Said said his government would sign a memorandum of understanding with the IMF in March for a previously spurned $3.2 billion loan.

Negotiations for any IMF loan would come in a context of political uncertainty in Egypt.

On Saturday, Egypt's parliament and senate voted for a 100-strong panel tasked with drafting the country's new constitution to include 50 lawmakers from the Islamist-dominated parliament.

The new constitution will replace the one suspended by the ruling generals when they assumed power following the overthrow of president Mubarak in February 2011.

The first presidential election since Mubarak's ouster is scheduled on May 23 and 24.

Tags: , , , , , ,
Categories Egypt Economy
Comments (0)

IMF mission to visit Egypt Monday

by admin
March 16th, 2012

An International Monetary Fund mission will begin a four-day visit to Egypt on Monday to meet with government leaders, after the fund recently agreed on a US$3.2 billion loan with Egypt's transitional government.

An IMF source, who requested not to be identified, told Al-Masry Al-Youm that the fund has received documents from the Egyptian government describing a reform program that will confront the country's economic challenges.

The IMF is ready to support reform programs that are passed by the People's Assembly and enjoy broad support across Egypt's political spectrum, the source said.

The mission, headed by Masood Ahmed, the fund's regional director, is scheduled to meet with Prime Minister Kamal al-Ganzouri, People's Assembly Speaker Saad al-Katatny, Freedom and Justice Party Chairman Mohamed Morsy, Muslim Brotherhood Deputy Supreme Guide Khairat al-Shater and a number of other political figures. 

The source added that the IMF conditioned its loan on Egyptian authorities passing an economic reform program that enjoys broad political support.

These are the fund's preliminary conditions, and it will continue to follow up on the Egyptian government's implementation of the reform program, the source said.

The source added that IMF workers have been in contact with Egyptian officials since they returned from their first visit to Egypt last January. On that trip, they discussed what should be included in any potential reform program, which would protect macroeconomic stability during Egypt's transitional period and create favorable conditions for growth.

Translated from Al-Masry Al-Youm

Tags: , , , ,
Categories Egypt Economy
Comments (0)