Dr. Fakhry El-Feky, former assistant to the executive director of the International Monetary Fund (IMF), expected the IMF to reject Egypt’s economic reform plan if it is submitted by the government in the current period.
The Fund wants to seal the agreement of the long-awaited US$ 4.8 billion loan after the parliamentary elections to insure political stability, he explained.
El-Feky called on the government to accept the emergency loan of IMF as a temporary solution to save the national economy. IMF mission has arrived Egypt today morning for talks with the authorities on the economic reform plan.
The mission will try to convince the government to delay signing the definitive loan agreement and accept the emergency loan which is worth US$ 750 million; 50% of Egypt’s share in the IMF, he added.
“IMF’s regulations stipulate that two-thirds of its member courtiers shall approve the loan and this will not happen because of the current political turmoil and economic deterioration,” he noted.