IMF chief to recommend USD12bn Egypt loan approval
Lagarde praised the country's economic reforms, including floating the Egyptian pound last week, and said the loan is needed to help restore stability and growth to the economy.
The International Monetary Fund had made floating the pound - which resulted in a steep devaluation and sharp price rises - a condition of the loan.
Egyptians are looking at a period of hardship as the government unrolls austerity measures ahead of the IMF program. The country has endured months of shortages of products ranging from sugar to baby formula.
Cairo governments had avoided the measures fearing unrest, but President Abdel Fattah al-Sisi says Egypt no longer has the luxury of postponing them. The November 3 move came amid a dollar crunch that led to a thriving black market and a slump in imports, and caused the pound to plunge to about 16 to the US dollar from 8.9.
The government also announced a 7% salary increase for civil servants, who number about six million out of a total population of more than 90 million.
Lagarde said in a statement that the moves, which also include cutting fuel subsidies, "will notably improve Egypt's external competitiveness, address shortages of foreign currency, support exports and tourism and help attract foreign investment."
The program aims "to put the country's economy on a sustainable path and achieve job-rich growth," she said.
Source: AFP.
Source: I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
