Political Conflict May Hinder Egypt’s Attempt To Secure IMF Loan: Investment Minister

The Egyptian Minister of Investment Osama Saleh said that the current political dispute may threaten Egypt’s opportunity to secure the long-awaited US$ 4.8 billion loan from the International Monetary Fund (IMF).

During the annual conference held at the Faculty of Economics and Political Science, Saleh affirmed that the state needs strong institutions, good governance and societal policy in order to implement the country’s plans, noting that the legal power is not enough.

The government has set a program to achieve high growth rates in order to curb the soaring budget deficit as well as create job opportunities, he added.

“The Brazilian experience is the best fitted model for Egypt as Brazil has succeeded in raising investment rates, increasing investments in infrastructure projects and granting tax exemptions. Egypt has to adopt the same strategy implemented in Brazil by reducing the birth rate and increasing the employment rate so as to boost the country’s GDP. Egypt is capable of achieving growth rate ranging from 7% t0 10% by investing its material and human resources,” Saleh noted. 

However, the former economic minister Mustafa El-Saeed confirmed that the repeated statements of Kandil’s government about targeting growth rate from 7% to 10% are irrational amid the current challenges facing the economy.