IMF Mission to Visit Egypt Today for Assessment

A mission from the International Monetary Fund will arrive in Egypt on Wednesday to begin “article IV” consultations, the first of their kind in three years, senior advisor to the US secretary of state David Thorne said on Tuesday, in front of the biggest US trade delegation ever to visit Egypt.

In September, Egypt’s government asked the IMF to conduct an assessment of its economy, the first “article IV” consultations in three years ahead of the Egypt Economic Summit next year aiming to enhance investors’ confidence.

Egypt’s relations with the international institution stumbled last year, as Egypt pared down its representation to the fund’s annual meetings to just diplomatic staff in protest of what several Egyptian officials said was the fund’s reluctance to recognise the new government.

Finance Minister Hani Qadry Demian is working on improving connections between Egypt and the controversial lending institution.

Demian was a key Egyptian negotiator with the International Monetary Fund (IMF) before being appointed minister.

In 2008, he was appointed as the Chairman of Deputies for the IMF’s International Monetary and Financial Committee (IMFC). He was the IMFC’s deputy at a G20 summit and chaired the IMFC communiqué drafting sessions.

After the January 2011 uprising, two years of negotiations over a $4.8 billion loan from IMF to Egypt have passed without an agreement between the two sides as public opinion opposed the loan. In addition, successive Egyptian governments have been reluctant to impose economic reforms required by the IMF.

Source: Ahram Online