IMF delegation to visit Egypt over future borrowing

International Monetary Fund (IMF) officials proposed to amend the conditions tied to Egypt’s request to borrow US$3 billion in June on the sidelines of annual IMF and World Bank meetings in Washington, DC, but Finance Minister Hazem al-Beblawy rejected the new terms.

Beblawy told Al-Masry Al-Youm that if the Egyptian government agrees to take out a loan from the IMF, it will do so under previously agreed-upon conditions.

According to the new proposal, Egypt would take a loan of US$3 billion with a 1.5 percent interest rate. The loan would then be paid off over a span of 39 months.

The ruling Supreme Council of the Armed Forces (SCAF) previously refused to borrow from the IMF, with the government saying it will finance its budget deficit - which currently stands at LE134 billion for the fiscal year 2011/2012 - with local Arab funds.