MP: $3.2bn IMF loan to Egypt shall be approved first by Parliament

Freedom and Justice Party approves foreign borrowing but only when necessary, Ashraf Badr El-Din, Party’s Member of Parliament and the vice head of budget committee, stated. He added that the Egypt’s agreement with International Monetary Fund on the $3.2 loan will not come into effect unless the Parliament approves it.

The parliament has not discussed yet the loan or the reform program set by the government, Badr added.

However, Momtaz El-Saeed, Minister of Finance, said earlier that the reform program was submitted to the parliament’s speaker and some of committees’ heads.

Badr demanded to know all details and information related to IMF loan; such as the real economic and fiscal status of Egypt, loan penalties, and the loan disbursement’s plan (used in current expenditure or investment expenditure).

There are many alternatives for IMF loan but the Egyptian government did not take any decision about it such as, raising the prices of natural gas exports and adding specialized funds to the general budget, Badr added.

Egypt shall not consider IMF as an opponent; especially that Egypt is a member in its board and is capable of withdrawing its $ 9 billion credit with IMF, an official at Ministry of finance said.