São Paulo – The International Monetary Fund (IMF) ended one more mission to Egypt on Tuesday (10) with the objective of discussing the organisation’s financial support to the local government’s economic plan. In a press statement disclosed by the institution, the delegation had meetings with members of the government and of the People’s Assembly, the Egyptian parliament. What is in play is a possible US$ 3.2 billion loan by the Fund to the country.
“The mission made good progress in its assessment of the policies embodied in the authorities’ economic program, which appropriately aims at maintaining macroeconomic stability during the on-going transition, while promoting economic growth and protecting vulnerable households," says the press statement.
It informs that "in the discussions with a wide spectrum of political parties in the People’s Assembly" a consensus was reached regarding the need to face short-term economic challenges and promote reforms to help the country reach greater and more inclusive growth.
"The mission reaffirms that broad-based support for a national economic program is essential to bolster confidence and ensure its successful implementation in the period following the current political transition,” says the statement. After the fall of dictator Hosni Mubarak, last year, Egypt had parliamentary elections, but the presidential election has not yet taken place and the government remains under the influence of the military.
According to the statement, Egyptian authorities are yet to conclude the details of the economic plan, including the 2012/2013 budget, and "mobilize the required political support for this program". "A financial arrangement to support Egypt’s economic program will be presented to the IMF Executive Board once this work is completed,” informs the press statement. "External financing from bilateral donors and other international institutions is confirmed," it finishes off.
In January, the World Bank announced a US$ 200 million loan for the development of water distribution and basic sanitation projects in the country. In February, the government called for another US$ 1 billion from the bank to support its economic programme.
Other sources of funds are transfer from donor countries, like Saudi Arabia, Qatar and the European, and other international fostering institutions, like the African Development Bank.
*Translated by Mark Ament
