Egypt To Sign $3.2 Bln IMF Loan By June: Momtaz El-Saeed

Egypt expects to sign a $3.2 billion loan with the International Monetary Fund around the beginning of June, said Finance Minister Momtaz El-Saeed.

El-Saeed said the first part of the loan could be released around July 1, the start of fiscal year 2012-2013. He said the central bank’s governor is currently in Washington discussing technical details related to the signing and transfer of the funds with IMF officials.

The IMF has requested broad political support for a loan- related economic plan to ensure it is implemented beyond the transitional period. The military council says it will transfer power to civilians by the end of June.

The government’s proposed loan-tied measures include reducing the budget deficit through speeding up the implementation of a value-added tax and “rationing” fuel subsidies without harming low-income people, according to a statement by parliament’s economic committee last month, Bloomberg reported.