Renewing Relations With Iran Not To Affect IMF Loan Deal: Ismail Hassan

One of that International Monetary Fund’s main aim is to assist crisis-hit economies with soft loans, said Ismail Hassan, chairman of Misr Iran Development Bank, commenting on the long-awaited US$ 4.8 billion loan that Egypt seeks from IMF, affirming that the country is one of IMF’s founding member; therefore, downgrading Egypt’s credit rating will not affect its loan deal with he international financial institution.

During an interview with Alashan Bokra TV talk show, Hassan explained that lowering the country’s credit rating affects its transactions with commercial financial institutions only because of the increasing potential risks, but IMF is not a commercial institution as its target is to assist member countries.

Hassan, who was governor of the Central Bank of Egypt, confirmed that Egypt’s attempts to renew relations with Iran will not threaten the IMF deal. IMF does not impose conditions on the borrowers; however, it shall be satisfied with the country’s economic reform plan to guarantee the payment of funds borrowed.

Egypt will not receive the total value of the loan as a lump sum, as IMF will give each payment after ensuring that the country is taking the required steps towards implementing the economic reform plan.