Absent Political Consensus May Delay IMF Loan Agreement – Former Official

The International Monetary Fund (IMF) meets with political opposition powers in Egypt including Al-Nour Party and the Egyptian Popular Current to know their opinion on the US$ 4.8 billion loan sought by the Egyptian government, said Dr. Fakhry El-Feky, former assistant to the executive director of IMF and Al-Wafd Party’s Shadow Minister of Finance.

IMF team is not satisfied with the societal dialogue conducted by the government on the economic reform plan; therefore, the team currently holds a number of meetings with various political powers to discuss their opinions on the long-delayed loan, he added.

If Egypt’s political powers refuse the steps that will be taken by the government in order to secure the loan, the agreement will probably be delayed until reaching a complete consensus on the government’s borrowing approach and the economic reform plan, he noted.

He further added that IMF has imposed a number of conditions on Egypt to secure the loan including political consensus on economic reform plan and raising the country’s foreign reserves. Qatar and Libya have given Egypt loans worth US$ 5 billion to shore up its foreign reserves.