Why does Egypt insist on an IMF loan despite the billions from the Ras al-Hikma deal? The government explains

Ibrahim Hassan

Wednesday, March 6, 2024 08:30 PM

Counselor Mohamed Al-Homsani, spokesman for the Council of Ministers, commented on reaching an agreement between Egypt And the International Monetary Fund To obtain a loan, he said: “After signing the agreement, the agreement will be presented to the Fund Board and approved finally, and then the disbursement of the loan tranches will begin.”

Al-Homsani added, in a phone call to the “Al-Hayat Al-Youm” program presented by journalist Muhammad Mustafa Shardi, via Al-Hayat channel, that the fund’s loan has been increased to 8 billion dollars, in addition to an additional 1.2 billion dollars that will be obtained from the Environmental Sustainability Fund, thus the total of the fund’s loan. $9.2 billion, and with regard to the tranches and all arrangements related to the review with the Fund in the coming period, they will be announced as soon as the agreement is finally approved.”

When asked about the government’s insistence on obtaining a loan from the International Monetary Fund, despite the availability of cash liquidity in the recent period, especially from the Ras al-Hikma deal, the Cabinet spokesman indicated that the IMF loan aims to support the state’s efforts in the reform process, and said: “The loan is not in its value, but in its meaning and the message it sends to the world, and signing with the IMF is a very important testimony for the Egyptian economy before the world, international financial institutions and all international partners, that the Egyptian state is capable of overcoming the current challenges, and that the International Monetary Fund supports the Egyptian reform measures.”

He continued: “Dealing with the International Monetary Fund is an important message to the foreign investor, and the investor will not be encouraged to invest and come to Egypt in the absence of this important certificate, and everyone is waiting for the signing of such an agreement in order to be reassured that the Egyptian state and the economic conditions will be overcome, hence the basic value of signing the agreement.” “With the International Monetary Fund in obtaining this important message that supports Egyptian reform efforts.”

He concluded: “Tomorrow, the Prime Minister will witness the release of many trucks from the ports loaded with goods, and based on presidential directives, he directed the concerned authorities to work on the release of food commodities, medicines, production requirements, and fodder, and starting tomorrow we will witness the release of many goods whose value has reached the Egyptian customs has the equivalent of $2 billion on Egyptian territory, so releasing these goods will contribute to lowering prices and reducing inflation.”

Regarding the Cabinet’s approval to import one million tons of sugar, he said: “It is tantamount to sending a strong message that the Egyptian state is keen to provide basic commodities in the Egyptian market, and as we know that sugar is one of the most important basic commodities for citizens, therefore the state is keen to provide quantities by importing more.” of sugar, to put it on the market, thus increasing the supply and reducing the current price, and that is a message to all concerned parties to all dealers in the market that the state is providing more sugar to reduce prices.”

ظهرت في الأصل على m.youm7.com

Leave a Comment