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Tuesday, 28 June 2016

Minister says Egypt in talks to borrow USD 5 bn from IMF, CBE and IMF deny

Egypt is in talks with the IMF to borrow USD 5 bn, anonymous minister says: Egypt has begun negotiations with the International Monetary Fund to borrow USD 5 bn, a “minister in Egypt’s economic group” told Reuters’ Arabic service on condition of anonymity. Talks began last week and a delegation from the IMF is expected to visit Egypt to complete the negotiations next month. No information was provided on what kind of loan Egypt is seeking. The newswire also provided coverage in English.

In response, Central Bank of Egypt Governor Tarek Amer issued a statement denying Egypt is “asking for assistance” from the IMF, adding that the government has its “own economic reform programme.” Amer added that if Egypt seeks IMF funding, it is entitled to a much larger amount than the rumoured USD 5 bn, securing about USD 10 bn if it chose to do so, according to Reuters. The IMF has also denied the news. “We have not received any program and financing request,” IMF Mission Chief for Egypt Chris Jarvis told Reuters.
The size of any financial arrangement would depend on Egypt’s financing needs and on the strength of its economic programme,” he added.

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