São Paulo – The Egyptian economy is faced with difficult challenges, despite its solid and sound foundations. The assessment was given by the director of the Middle East and Central Asia Department of the International Monetary Fund (IMF), Masood Ahmed, who has just completed a mission to Egypt.
“[These challenges] have to be addressed through an economic program that safeguards macroeconomic stability and creates conditions for a strong recovery,” said Ahmed according to a press statement issued this Wednesday (18th).
According to the executive, the Fund and the Egyptian government are in talks to devise a support program aiming to restore confidence in the local economy, enable job creation and guarantee that the more vulnerable families are protected during this transitional period.
Egypt is under a provisional government backed by a military council, which ascended to power after the ousting of dictator Hosni Mubarak, in February. Since late November, elections are being held for the parliament, on different days for each region and for each of the different houses of Parliament. Still, elections for the Executive power have no set date yet. The voting is expected to take place before the first half of the year is over.
According to Ahmed, local authorities have laid out an economic plan which is now being discussed with the new political parties which arose in the country to garner “broad political support.” The technical discussions with the IMF will continue throughout the following weeks.
A US$ 3.2 billion loan is being negotiated. Halfway through last year, the country turned down a US$ 3 billion offer from the Fund. Yesterday, the World Bank signed an agreement granting US$ 200 million to the country for water and sanitation investment.
*Translated by Gabriel Pomerancblum
