No to IMF – Yes to Gulf investment says Egyptian government


Egypt’s Finance Minister Ahmed Galal has rejected overtures by the International Monetary Fund (IMF) to start negotiations for an IMF loan. The minister said that the Fund wants the government to instigate austerity measures whereas the government was moving towards stimulating the economy.

Meanwhile Egypt is organising a Gulf-Egyptian Investment Forum which will take place on 4th December.

Three press releases from the State Information Service (SIS) are provided in full as follows:

“Finance Minister: We do not need IMF loan

Wednesday, 13 November 2013

Minister of Finance Ahmed Galal said that Egypt does not need The International Monetary Fund (IMF)’s loan, as Egypt has enough money to achieve the government’s goals over the coming period.

Galal added that the policies adopted by the Egyptian government are different from the policies that the IMF said that Egypt should abide by so that it would give Egypt the loan.

He pointed out that the IMF urged Egypt to adopt austerity policies while the current government adopts policies aiming at stimulating economy and achieving the revolution’s goals.”

The response by the IMF on Thursday according to the State Information Service was as follows:

’IMF’: We are still ready to aid Egypt when needed

Wednesday, 13 November 2013

The International Monetary Fund (IMF) remains ready to provide aid to Egypt when Cairo requests it, a senior IMF official said on Tuesday 12/11/2013 without elaborating on when that might happen.

“We have some technical work already underway and we will be very ready and keen to support them when they think the time is right in terms of financing,” IMF’s Director for the Middle East and North Africa Masood Ahmed said in a news conference in Dubai.

Egypt and the IMF have had a sometimes tense relationship because of national pride and the international lender’s efforts to persuade Cairo to undertake politically sensitive economic reforms such as subsidy cuts.

For over two years the two sides have sporadically discussed the possibility of an IMF loan to Egypt that could be worth $4.8 billion, but no final agreement has been reached.”

Meanwhile Egypt is looking increasingly towards the Gulf States for fiscal and investment support as demonstrated in this SIS press release as follows:

“Cairo hosts Gulf-Egyptian Investment Forum on December 4

Wednesday, 13 November 2013

The Investment Ministry will host the “Gulf-Egyptian Investment Forum” on December 4 under the auspices of Prime Minister Hazem el-Beblawi.

“The forum is a great opportunity to further boost joint cooperation between Egypt and the Gulf countries,” said Investment Minister Osama Saleh in a joint press conference held Tuesday 12/11/2013 with the UAE State Minister Sultan Ahmed el-Jaber.

“It will enhance cooperation in the fields of electricity, renewable energy, housing, agriculture, communication, tourism and transportation,” added the minister

Saleh praised the role of the UAE, which called for organizing the event that he believed “is a new step forward to achieve strategic partnership and economic integration.”

He also explained the efforts exerted by the Egyptian government to create an environment conducive to investments including legislative and institutional reform.

For his part, the UAE minister said that his country has confidence in Egypt and its people to overcome crises to build a better future.

He also called on all the participants in the forum to prepare their ideas and initiatives to be discussed and to contribute in formulating a clear vision which would encourage more investments.”

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