Breaking – IMF Chief Says To Reach Loan Agreement With Egypt Next Week

The International Monetary Fund will be reaching a deal with Egypt regarding a US$ 4.8 billion loan program, next week, the international lender’s chief said on Saturday, according to the state news agency MENA.

During a press conference held on the sidelines of 2013 Spring Annual Meeting of the IMF and World Bank, the IMF’s Managing Director Christine Lagarde, said in a reply to a question, about the schedule for reaching a final agreement with Egypt, similar to a recently signed deal with Tunisia.

Lagarde declared the IMF “would not give up, would not leave the table” until it had struck a loan deal with Egypt.

“I hope we continue the progress that we have made. It is a task and we will not give up, we will not leave the table, we have to continue the work and have to be of support to the Egyptian population,” Lagarde told a news conference at the end of a meeting of the IMF’s steering committee.

The Tunisian authorities and IMF staff have reached on Friday a staff-level agreement on a 24-month Stand-By Arrangement (SBA) in the amount of US$1.75 billion (equivalent to about SDR 1.14 billion, or 400 percent of Tunisia’s quota in the IMF). This agreement will be subject to approval by the IMF’s Executive Board, which is expected to consider Tunisia’s request next month.

“The SBA, once approved by the Executive Board, would support the authorities’ economic agenda aimed at preserving fiscal and external stability, fostering higher and more inclusive growth, and addressing critical vulnerabilities of the banking sector.” Lagarde said

“These reforms are expected to help address many of Tunisia’s pressing economic and social challenges, and contribute to reducing risks that could arise from a worsening of the international economic environment or from protracted political uncertainty. These reforms deserve the support of the IMF and the international community through financial assistance, policy advice, and technical assistance.”