Contrary to expectations, Egypt rejects new IMF loan
Many observers were surprised when Egypt announced recently it has turned down negotiations for a new loan from the International Monetary Fund.
CAIRO — Does Egypt need to borrow more money? That's the billion-dollar question preoccupying citizens and economists.
At the Egypt Petroleum Show on Feb. 11 in Cairo, Tarek Amer, the Central Bank of Egypt governor, said Egypt and the International Monetary Fund are discussing possible IMF technical support for the government's structural reform program aimed at reducing bureaucracy.
News reports had indicated that Egypt had been expected to negotiate with the IMF on a new loan, but in a Jan. 29 interview on DMC TV, Amer said Egypt had turned down the IMF's offer because the country no longer needs funding.
Amer acknowledged on DMC that Egypt definitely had needed funding in 2016, when it battled a severe economic crunch amid a shortage in foreign currency reserves.
