Last Update 14:32
Egypt, IMF resume talks over $4.8bn loan
Fund delegation has begun discussions with authorities in Cairo over long-awaited, controversial borrowing
Reuters, Wednesday 31 Oct 2012
Share/Bookmark
Views: 422
IMF meeting
A previous meeting held in IMF offices (Photo: Reuters)

The Egyptian government resumed negotiations on Wednesday with the International Monetary Fund on a loan to help the country shore up public finances that have haemorrhaged since its popular uprising.

Many foreign investors are waiting for an IMF agreement before venturing back to Egypt. Cairo has asked for a $4.8 billion loan, but officials have said it might seek more.
 
An IMF team, which held an initial round of talks with the new government of President Mohamed Mursi in late August, returned to Cairo on Tuesday. Various Egyptian governments have been negotiating for an IMF loan for the last year and a half.
 
"The talks started with the Egyptian authorities," IMF spokeswoman Wafa Amr told Reuters, without giving details.
 
Presidential spokesman Yasser Ali said Egypt had presented its programme of economic reforms to the IMF, also giving no details. His comments were carried on a website of the Muslim Brotherhood, the group that propelled Mursi to power.
 
The government says the reforms, which it has yet to publish, will be open to public debate.
 
Egypt formally asked the IMF for a loan in August to help it plug budget and balance of payments deficits that have mushroomed since long-time leader Hosni Mubarak was ousted in February 2011.
 
The IMF has in return asked Egypt to present it with a programme and line up additional financing from other agencies and countries. It has asked the government to demonstrate that any programme has broad political support within Egypt.
 
The IMF wants Egypt to take long-term steps to narrow a budget deficit that has grown to 11 per cent of gross domestic product since the uprising, and measures to reduce costly state fuel subsidies will be key to any deal.
 
Energy subsidies now eat up around a quarter of total government spending. A minister said this month that the scale of subsidy cuts planned for fiscal 2012/13 would not be realised because of delays in implementing restructuring.
 
Officials have said the government also wants to expand sales tax into a full-blown value-added tax (VAT), a move that was part of a programme discussed by the government under Mubarak.




Short link:

 

Email
 
Name
 
Comment's Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 4000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
1



Modern_Humaniora
31-10-2012 09:29pm
0-
0+
The most devastating Prize of all time
The most devastating Prize of all time, the Arab Spring has now happily corrected that decision, in terms of materialistic ignorance, was when The Royal Swedish Academy of Sciences decided to award the 1976 Prize in Economic Sciences in Memory of Alfred Nobel to Milton Friedman. So keep the eyes open - for the sake of the future ...
Email
 
Name
 
Comment's Title
 
Comment

© 2010 Ahram Online. Advertising