The global financial institutions await the signing of the International Monetary Fund (IMF)’s loan agreement with Egypt so as to submit their aids to the cash-strapped country, the minister of planning told Amwal Al Ghad on Thursday.
Dr. Amr Darrag, Egyptian Minister of Planning and International Cooperation, stated that the global financial institutions’ aids to Egypt are subject to the signing of the IMF’s US$4.8 billion loan agreement.
The minister explained that the global financial institutions are willing to ensure that Egypt would manage to pay back the funds. Therefore, they are waiting for Egypt’s signing of the IMF loan accord.
The global financial institutions’ aids to Egypt are designated to finance the country’s budget deficit, Dr. Darrag noted.
The loan, needed to help stabilize Egypt’s balance of payments and state finances, has been under discussion for two years but agreement has repeatedly been postponed by political unrest in the country and the government’s reluctance to commit to austerity measures.