São Paulo – The International Monetary Fund (IMF) should provide financial support for the recovery of Egypt. The announcement was made on Wednesday (22) by the managing director at the organisation, Christine Lagarde, while visiting the country. She met with the president of Egypt, Mohamad Morsi, and with prime minister Hesham Kandil, with the Finance Minister, Mumtaz Said, and with other members of the economic team of the local government.
"The authorities have indicated that Egypt would like the IMF to support Egypt’s economic program financially to help the country recover and to lay the foundation for strong growth that benefits all. We are responding quickly to this request. A technical team will be arriving in Cairo in the early September to work with the authorities on their program and discuss possible forms of financial support from the IMF," said Lagarde, according to a press statement issued by the fund.
The IMF statement does not bring the volume of aid called for by Egypt, though news agency Reuters informs that the call was for US$ 4.8 billion, according to information provided to the agency by Yasser Ali, a spokesperson for the Egyptian president.
During the visit, Lagarde congratulated Morsi for his election and said that the fund is engaged with supporting Egypt and its people “during this historic period of transition”. “The IMF has maintained a close dialogue on economic policy with the Egyptian authorities since the start of the transition and provided considerable technical assistance upon request from the government,” she says.
Lagarde stated that Egypt is facing “considerable challenges”, like the need to return to growth and reduce the deficit between the budget and the balance of payments. “Getting the country’s economy back on track and raising the living standards for all will not be an easy task. The Egyptian people have legitimate expectations for a better life and greater social justice. We at the IMF, stand ready to help,” she finished off.
*Translated by Mark Ament
