Minister of Finance Amr El-Garhy said that the value of the International Monetary Fund’s (IMF) first tranche of the first payment is not determined yet.
El-Garhy expected that the exact amount will be set after the IMF’s executive board approve the loan, which will be within four to six weeks.
The minister noted that after the loan agreement with the IMF, the current fiscal year’s budget will not be amended.
He pointed out that the value of the first tranche depends on internal procedures in the IMF after the technical mission concludes its report, and puts it up for voting.
From his part, deputy finance minister for fiscal policies Ahmad Kojak said that the government’s commitment to achieving the objectives of the current fiscal year budget means that the government has achieved half of the economic reform programme that was agreed on with the IMF.
Kojak added that the government aimed at improving the initial budget deficit to 5.5% by the end of three years.
Deputy governor of the Central Bank of Egypt (CBE), Lobna Helal, said that Egypt currently does not face difficulties in capital transfers of foreign direct investment, due to measures set by the CBE.
Helal noted that the current reforms taken by the government will enhance the confidence of investors in the market.
She pointed out that external debt rates currently stand at 15%, while they reach 60% in other countries. The volume of Egypt’s foreign debt had reached $53.4bn before the IMF deal.
The government agreed with the IMF on a $12bn loan over three years to overcome the budget deficit.
