IMF Oblige Govt To Amend Tax Policies: Hazem al-Beblawi

Hazem al-Beblawi, the ex-finance minister of Egypt, said the International Monetary Fund (IMF) will oblige the government to amend the tax policies and provide incentives to the investors, as well restructure the subsidy to power as a main condition to approve borrowing Egypt $4.8 billion in 2012.

He referred that the conditions of IMF loan considered as interference in the state’s policies, but accepting them is inevitable as the loan is a good method to decrease the budget deficit and to face the slump of the state’s reserves of foreign currency. It also will help Egypt to get out of the hard economic state.

The minister added that the IMF has several exceptions to approve increasing the loan; particularly the interest on the loan is lower than the interest on the interior borrowing.