The government is not obliged to withdraw the total value of the loan requested from the International Monetary Fund (IMF), which may amount to US$4.8 billion, even if the agreement is signed, said Planning and International Cooperation Minister Ashraf al-Araby
Al-Araby told state-run news agency MENA that Egypt might dispense part of the loan if it successfully obtained financial resources from other entities or otherwise attracted local or foreign investment that offset the need for the loan.
“It has happened in the past that Egypt signed for international loans and did not withdraw them, and many countries do that,” he said.
He stressed that the main objective of the loan is to get an international certificate that supports the economy in the future and reassures foreign investors of a healthy investment climate in Egypt, resulting in an improvement in Egypt’s global credit rating and renewed confidence in its ability to meet internal and external financial obligations.
He noted that there is no agreement on the value of the loan so far. It will either be $3.2 billion, or will it be increased upon Egypt’s request to $4.8 billion.
The minister stressed that even the IMF approves an increase, there will be no additional conditions imposed on Egypt.
Al-Araby said that the government has not yet started to implement the economic reform program, as it is being negotiated with the IMF, and will continue negotiations in mid-September
Edited translation from MENA
