Talks With IMF Won’t Be Affected By El-Okdah’s Resignation: Experts

By Administrator On Dec 17, 2012

A number of bankers affirmed that if Farouk El-Okdah leaves his position as Governor of the Central Bank of Egypt (CBE), the country’s negotiations with the International Monetary Fund (IMF) to receive US$ 4.8 billion loan will not be affected as the IMF considers many other key factors.

Over the last nine months, El-Okdah has contributed to achieving many accomplishments such as keeping exchange rates stable, strengthening the CBE’s supervision over banks, dealing effectively with the global financial crisis and achieving foreign cash reserves of US$ 35 billion before they dropped sharply to US$ 15 billion after last year’s revolution.

The Governor insists to leave his position because of personal reasons as he refuses to remain in his post till the end of his term, although the Egyptian president Mohamed Morsi has attempted several times to make him continue his term.

Abdel Megid Mohy El-Din, deputy chairman of Egyptian Arab Land Bank, said that El-Okdah was expected to quit as he demanded to resign several times, but he decided to stay during the government’s talks with IMF.

Mohy El-Din said that El-Okdah may leave due to health issues, adding that the talks with IMF will not be affected after the Governor’s resignation as the international financial institutions consider economic standards and the country’s orientations.

All the candidates for the position of CBE’s Governor are competent and have great banking experience, he affirmed, expecting that the country’s monetary policy will not change if one of these candidates holds the position.

Sherif Othman, head of treasury at Arab Bank Corporation (ABC), said that naming a new Governor in the current period will not affect the talks being conducted between the government and IMF to receive US$ 4.8 billion loan as international institutions deal with entities not persons.

Othman affirmed that El-Okdah has long contributed to achieving many accomplishments over a period of nine years, noting that there are many other banking cadres in Egypt who are competent to hold the position of the Governor.