Egypt’s Economy Will Meet Challenges – Presidential Spokesman

Presidential Spokesman, Yasser Ali, said on Tuesday that President Mohammed Morsi told the International Monetary Fund (IMF)’s delegation that Egypt’s economy will meet its challenges.

Ali said in a press conference that Morsi met with the IMF’s delegation on Monday in Cairo and told them that Egypt is working to overcome its economic crisis.

Ali said that Egypt is determined to implement policies that promote social justice and support low-income groups.

The Islamist-led government has signed an initial agreement of a $4.8 billion loan in November in efforts to revive the economy, which collapsed during the transitional phase that followed ousting the former president Hosni Mubarak.

Yet the final ratification had been postponed after Morsi had cancelled tax increases, which were believed to be part of a package of austerity measures that Egypt has proposed to the IMF in order to be eligible for the loan.

The loan talks were also adjourned after Morsi’s constitutional declaration which gave him sweeping powers that triggered protests causing political turmoil.

Ali confirmed that the IMF will send a technical committee to Egypt in the two or three weeks to resume the loan negotiations from where they stopped.

Aswat Masriya