Last Update 1:36
Saturday, 21 September 2019

Egypt to sign LE3.2 billion IMF loan deal in March

Finance minister says IMF delegation will visit Egypt in March to sign a $3.2 billion loan accord with Egypt receiving $1 billion upon signature

Reuters and Ahram Online, Sunday 19 Feb 2012
Minister of Finance Momtaz El-Saied (Photo: Al-Ahram)
Views: 1680
Views: 1680

Egypt expects to sign a $3.2 billion loan agreement with the International Monetary Fund (IMF) next month and will receive one-third of the funds immediately upon signing, Finance Minister Mumtaz El-Saeed was quoted as saying on Sunday.

The loan accord would be signed during a visit to Egypt in March by IMF regional director Masood Ahmed, Al-Ahram daily newspaper quoted him as saying. Egypt would receive another one-third of the loan in three months and the final one-third in six months.

The loan, which has an interest rate of 1.2 per cent, would be used to support the 2012/13 budget and to compensate for the depletion of Egypt's foreign reserves, Al-Ahram quoted Saeed as saying.

Egypt's foreign reserves dropped to $16 billion at the end of January; hence the country's dire need for foreign currency. The sharp drop in reserves was quoted by the S&P rating agency as the main reason behind its latest downgrade of Egypt's long-term credit rating.

Egypt last month began negotiating the $3.2 billion package to plug widening budget and balance of payments deficits caused by the economic and political turmoil of the past year. Egypt said it wanted to seal an accord within weeks.

The IMF has said Egypt would have to line up substantial commitments from international donors before it would agree to any financial package. Economists estimate that Egypt needs about $10-12 billion in external funding over the next year and a half.

Al-Ahram quoted Saeed as saying that Egypt was negotiating with the World Bank for another $1 billion, but the fate of economic aid promised by several Gulf states was still not clear.

Any loan agreement would have to be subsequently approved by the IMF's board of directors, the IMF has said.

Egypt rejected a similar IMF loan in June 2011, citing the military rulers' reluctance to increase the country's foreign exposure. Mounting pressures on the country's finances, however, forced officials to rethink the IMF offer.

Short link:


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 1000 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.

Free Lady
20-02-2012 08:39am
Save country from IMF
IMF never indent to help any poor country without hidden agenda. They are like financial plague. Who ever touch them his disease gets worse. Try to tight egyptian spending but avoid IMF(International Monetary Fraud).
Comment's Title

© 2010 Ahram Online.