Mohamed Gouda: IMF Procrastinates by Negotiating Over Loan

By Administrator On May 16, 2012

The Experts’ opinions varied around the inevitability of borrowing from abroad and also their views for the available alternatives in case of not getting the planned $ 3.2 billion loan from IMF.

Some experts see that borrowing from IMF is normal as it contributes to the fund’s capital, while others see that the priority comes for the local alternatives .

Tarek Al Desouky, head of Economical Affairs Committee in PA, said it is expected that Dr. Farouk Al Okdah, central bank governor, to get the IMF’s decision during his visit the US.

He affirmed that the People’s Assembly is working on a number of economic reforms; irrespective of the commitments imposed by the fund. He explained that these reforms don’t hinder the loan’s approval.

Mohamed Gouda, the head of economic education committee in FJP, said the party has provided a number of suggestions and alternatives for supporting Egypt draft budget 2012-2013, which its deficit estimated by EGP 140 billion.

Gouda added that the alternative that the party offered to the government is to include special funds and re-price the exported-abroad gas. The party also called on the government to elaborate all the information that concerns the country’s economic state during the current period.

He mentioned that the dollar liquidity will increase during the coming period due to the stability and regaining the affected resources to good rates; like tourism and direct investments.

For his side, Al Sayed Al Kaseer, chairman of Industrial Development & Workers Bank, said the IMF seeks to guarantee all the different political powers’ consent to grant the loan. The transitional period and its interim government raise the international institutions’ doubts, regarding the long-term decisions.

Egypt’s finance minister, Momtaz Al Said, in former statements, said the government keens on coordinating with the PA and all the political powers around the planned deal with IMF. He elaborated that the loan proves the whole world that Egyptian economy is able to recover and attract investments.