imf ready to help egypt

The loan negotiated between the International Monetary Fund (IMF) and Egypt would amount to $ 3.2 billion, Christine Lagarde, the executive director of the institution has said in Washington. “There is a loan of US$3.2 billion which is negotiated right now, “she said at a press conference, when asked about the progress of discussions.

She explained that not all conditions were met. “Some say they are not convinced about the IMF, thus it’s a bit of a problem,” she said.

The political forces in Egypt are divided on the issue. The main force in the Parliament, the Muslim Brotherhood, rejected the idea of a loan that would benefit the transitional government appointed by the army. “For us to give a loan, this requires, first of all, that we have negotiated with the country and the authorities of the country over an economic program that will actually help this country get out of the difficulties in which it is facing,” added Lagarde.

“The second condition is that there is a broad political support so that our loan program would be implemented “even after a change of government, she said. “We want to help Egypt, there is no doubt about it. But it must be done in accordance with the principles which we work, ” she said.

The IMF forecasts a growth limited to 1.5% this year in the Egyptian economy and 3.3% in 2013. The IMF is unsure of the duration of negotiations.

The IMF director for North Africa and the Middle East Masood Ahmad reiterated during a press conference in Washington that the institution was expecting a “broad political support” for the economic program that would accompany the loan. “Will this take a week, two weeks or eight weeks? It’s hard for me to estimate because much depends on what happens in the country,” he said. “For our part, we are ready to conclude (the negotiations),” said Ahmad.

The IMF expected that the Egyptian political parties would reach a consensus, among others, on a budget. This comes with the preparations for the presidential elections whose first round is scheduled for May 23 and 24.