Egypt Likely Not To Receive IMF Loan; Says Former Official

Dr. Fakhry El-Feky, former assistant to the executive director of the International Monetary Fund (IMF), has ruled out the possibility of receiving the long-awaited US$ 4.8 billion loan by Egypt within the current phase.

El-Feky has explained that Egypt is likely not to receive the loan due to the decline in the country’s foreign reserves which are currently enough to cover only one month and a half. However, the IMF requires that the country shall have foreign reserves not less than US$ 19 billion; an amount that Egypt would not be able to pursue in the meantime.

Moreover, El-Feky stated that the economic situation in Egypt is witnessing multiple challenges, notably the fall of its foreign reserves to US$ 13.6 billion, the budget deficit, balance of payment shortage, increasing inflation and unemployment and the national currency’s decline against the US Dollar in which the latter has managed to exceed EGP 6.70 level.

The values of net international reserves held by the Central bank of Egypt since 2000 are as follows: