Arab Today, arab today egypt refuses emergency imf loan
Last Updated : GMT 22:26:23
Arab Today, arab today
Arab Today, arab today

Egypt refuses emergency IMF loan

Arab Today, arab today

Arab Today, arab today Egypt refuses emergency IMF loan

Cairo - Arabstoday

Egypt will not accept an emergency loan from the International Monetary Fund (IMF), Minister of Finance El-Morsi El-Sayed Hegazy announced during a press conference on Tuesday.  The global lender recently offered Egypt emergency funds through the Rapid Financing Instrument (RFI) facility to help it overcome its urgent balance of payments crisis, in parallel with negotiations over a $4.8 billion long-term stand-by-arrangement (SBA). Egypt\'s cabinet spokesperson Alaa El-Hadidi told Reuters that any loan agreement would only be agreed within the framework of the country\'s economic programme. Under the RFI programme Egypt could have accessed almost $700 million in emergency funds. According to IMF regulations, emergency loans are limited to 50 per cent of the country\'s quota per year and 100 per cent of its quota in total. Egypt\'s quota, which is determined by its relative position in the world economy, amounts to approximately $1.4 billion. The RFI does not require a full-fledged economic plan but IMF officials have said that although Egypt can apply for an emergency short-term loan it must still make serious macroeconomic and fiscal reforms. \"This instrument [the short-term loan] is a gesture of goodwill from the IMF. It does not want to appear like it is abandoning Egypt, especially as the $4.8 billion facility is being delayed,\" former finance minister Hazem El-Beblawi told Ahram Online, Tuesday. In late February, the Egyptian government unveiled a modified economic recovery programme that aimed to meet the IMF\'s pre-conditions for a proposed $4.8 billion loan, which included tax and budget reforms. However, anonymous IMF sources have expressed scepticism about the effectiveness of the government\'s proposed reforms. Both the IMF and Egypt agreed that the RFI would not be a substitute for Egypt\'s economic reform programme. On Monday, IMF spokeswoman Wafa Amr told Reuters that the RFI could have been \"an option if there was a need for interim financing while a strong medium-term policy programme is being put in place.\" A team from the IMF was expected to visit Egypt in the next few days to resume negotiations over the $4.8 billion loan, however the cabinet\'s spokesperson announced Tuesday that \"no timing had yet been set\" for the visit. Negotiations over the $4.8 billion loan have stirred controversy in Egypt, with both ultra-conservative Islamists and leftists criticising the goverment\'s position. The main concern is that Egypt will implement austerity measures burdening low-income segments of the population in order to secure the loan. The announcement of reforms in December 2012 was met with widespread discontent. President Morsi was obliged to reverse a decision to increase taxes and reduce government subsidies on butane gas and electricity. Some observers said the amended economic recovery programme, which was announced in February, did not include enough fundamental macroeconomic reforms to help Egypt overcome its economic difficulties. This could be making the fund\'s executive board wary about Egypt\'s economic outlook, the observers added. \"It seems the fund is unconvinced about Egypt\'s economic reform programme. It is also wary of the unstable political situation in the country,\" Beblawi explained. \"So they can\'t make a large loan, but they can still help.\" Egypt\'s net foreign reserves fell by $105 million in February to a critical $13.508 billion, the Central Bank of Egypt (CBE) said. The country\'s budget deficit increased by 35.8 per cent to LE119.8 billion ($17.7 billion) from July to January of the 2012/13 fiscal year compared to the same period the previous fiscal year. Albawaba Business

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt refuses emergency imf loan Arab Today, arab today egypt refuses emergency imf loan

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt refuses emergency imf loan Arab Today, arab today egypt refuses emergency imf loan

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday