Egypt’s economist Dr. Mostafa Badra said that the IMF team agreed to some basic rules and steps that the government must follow in the first agreement, which was six months ago.
In order for the government to receive final clearance for an IMF loan, Badra stated that it is necessary for the government to adhere to the norms and procedures that are supported by the IMF mission. It is possible to make the private sector better and give the exchange rate more freedom.
Badra said on TV on Saturday night that the IMF loan decision shows that the Egyptian economy is stable and confident, which makes investors want to come back and put money into Egypt. Besides that, he said that the Arab country had been turned down for loans before because its own country was unstable.
It was supposed to be a $750 million loan, but Egypt only got $347 million. They also got an extra $14 billion in cash instead of $9 billion.
The expert said about foreign exchange savings, “They will not be used to back the pound against other currencies.”
There is a clear foreign exchange deficit on the market, according to Badra, and Egypt’s economy has hit a point of economic stagnation. He talked about changes in the gold market and the real estate market. A lot of people think the Central Bank Policy Committee will lower interest rates next Thursday, he said.
Cairo 24 is the source.
