S\u00e3o Paulo \u2013 A committee from the International Monetary Fund (IMF) has negotiated a US$ 4.8 billion loan to Egypt for backing government programs in the next two years, aiming to recover the country\u2019s economy over the next two years. The financial aid is pending approval from the IMF executive committee, due in the next few weeks. The information was released in a press statement last Tuesday (20th).<\/p>\n
The agreement was negotiated between the Egyptian government and a mission led by Andreas Bauer, head of the IMF Middle East and Central Asia Department. \u201cThe Egyptian authorities have developed a national programme that seeks to promote economic recovery, address the country’s fiscal and balance of payments deficits, and lay the foundation for rapid job creation and socially balanced growth in the medium term,\u201d said Bauer in a press statement.<\/p>\n
The IMF mission head also said Egypt will receive backing from other international organizations. \u201cThe authorities’ program will be supported by a financing package of $14.5 billion in loans and deposits on favourable terms from a range of bilateral and multilateral partners, including the IMF. The availability of external financing will allow for a gradual adjustment of the economy and substantially reduce Egypt’s cost of borrowing, given the much higher interest rates on domestic loans.\u201d<\/p>\n
In the IMF statement, Bauer announced some of the measures that the Egyptian government should take, including spending cuts and a reassessment of energy subsidies, which will be directed to vulnerable groups. \u201cAt the same time, the authorities intend to raise revenues through tax reforms, including by increasing the progressivity of income taxation and by broadening the general sales tax to become a full-fledged value added tax,\u201d he said.<\/p>\n
\u201cThe resources generated will be used to boost social spending and infrastructure investment, and to gradually reduce the large budget sector deficit from almost 11% in 2011\/12 to 8.5% of GDP in 2013\/14, while the budget sector primary deficit will decline from 4% in 2011\/12 to 0.6% in 2013\/14 and is projected to turn positive in the following fiscal year,\u201d said Bauer.<\/p>\n
*Translated by Gabriel Pomerancblum<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
The amount will back government programs in the next two years to help recover the Egyptian economy. The loan agreement has been signed.<\/p>\n","protected":false},"author":2316,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-43182","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy"},"wps_subtitle":"The amount will back government programs in the next two years to help recover the Egyptian economy. The loan agreement has been signed.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/43182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2316"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=43182"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/43182\/revisions"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=43182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=43182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=43182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}