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IMF concludes visit to Egypt, no word on aid

Hazem el-Beblawi has said Egypt was open to IMF funding but had not made any formal request for aid since turning down a financing package in June.
05.11.11 | Source: Reuters Africa

The International Monetary Fund wrapped up a mission to Egypt saying the country faced economic challenges but gave no word on whether the interim government had made a fresh request for IMF funds, it said in a statement on Thursday.

Egypt's Finance Minister Hazem el-Beblawi has said Egypt was open to IMF funding but had not made any formal request for aid since turning down a financing package in June.

Egypt turned down more than $3 billion from the IMF in June, a decision widely believed to be due to opposition from the army, which is currently in charge of the interim government and which has been wary of building up debts.

The IMF mission, which visited Cairo from Oct. 26 to Nov. 3 to take stock of recent economic developments and assess financing needs, said there were challenges.

"Egypt's medium-term economic potential is promising. However, maintaining macroeconomic stability and social cohesion amidst modest short-term growth prospects and a weakening external environment remains challenging," the mission said in a statement.

It said it welcomed the authorities' efforts to implement a home-grown strategy for growth and job creation, adding the IMF "looked forward to continuing to engage" with the Egyptian authorities.

Egypt's economy suffered after an uprising that unseated Hosni Mubarak in February as tourism and investment were hit and it continues to be affected by uncertainty about the shape of a future government.

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