VENTURES AFRICA – The International Monetary Fund (IMF) on Tuesday admitted that it remained loyal to assisting Egypt deal with its economic challenges.
Egypt’s economic problems have been exacerbated by the country’s turbulent political environment since the toppling of Hosni Mubarak’s regime in 2011.
Masood Ahmed, Director of the Middle East and Central Asia Department of IMF, said the Washington-based body wanted to support Egypt in addressing its increasing economic challenges.
“We remain committed to help the country even move to a more inclusive model of economic growth through a socially-balanced homegrown program,” Ahmed said.
He made these comments after meeting Egyptian officials in Cairo yesterday including President Mohamed Morsi.
“I am encouraged by the authorities’ commitment to take steps necessary to achieve fiscal and external sustainability,” he said.
“Following our discussions today, and based on the work that is to be carried out, we agreed that an IMF technical team would visit Cairo in the coming weeks to resume discussions on possible IMF financial support.”
Masood was visiting Egypt for talks with officials from the North African country regarding negotiations over a $4.8bn loan agreement with the IMF that was frozen in December.
Egypt had requested the loan to help it bridge gaps in its fiscal deficit this year.
Meanwhile, Associated Press (AP) reports that doubts are emerging about the Egyptian government’s ability to implement painful austerity measures linked to the IMF’s critical $4.8 billion loan that could stop an economic collapse.