Egypt upset over 'improper' IMF treatment
Cairo, October 24, 2013
Egypt's central bank governor, Hisham Ramez, has criticised the International Monetary Fund over the manner in which his country was invited to the institution's annual meeting in Washington.
Months of talks between Islamist President Mohamed Mursi's government and the IMF failed to produce an agreement over a $4.8 billion loan before the army toppled Mursi on July 3.
Ramez told Reuters a senior IMF official, whom he declined to name, had invited Egypt to attend the annual meeting held earlier this month in an "inappropriate" way.
"This prompted the Egyptian government to reject the invitation," said Ramez.
The IMF loan is widely viewed as necessary to convince foreign donors and investors that Egypt's economy, which has been battered by political turmoil, is on the right track.
Earlier this month, IMF chief Christine Lagarde said the fund was ready to work with Egypt to help stabilise the country's economy, citing discussions that have been going on for the past year and a half.
Ramez praised Lagarde, saying she loved Egypt like the rest of the French.
The IMF had been negotiating the critically needed loan with Egypt before the military removed Mursi from office.
The current army-backed Cabinet as a whole seems to be in little rush to resume talks with the IMF about the loan, which would require economic reform commitments that the government might find politically risky.
Egypt has received pledges of aid from several Gulf countries, including Kuwait and Saudi Arabia, expected to help the most populous Arab state avoid a balance of payments crisis and overcome fuel shortages that partly caused a wave of public anger against Mursi.
The cash injections are keeping the economy afloat, but analysts say the government still needs a long-term plan to ensure financial stability.
Foreign reserves dipped to dangerously low levels in the months before Mursi's ouster, but have begun to recover, boosted by the billions sent by Gulf allies. - Reuters
More Finance & Capital Market Stories
- BIBF signs deal with Palestinian institute
- Bahrain’s GDP set to expand 12pc
- KFH-Bahrain rebrands priority banking
- Bank Nizwa wins top Islamic bank award
- Qatar labour costs may jump: IMF
- Kuwait Q3 trade surplus hits $23bn
- Dubai trade growth up 7.6pc to $362bn
- Deloitte appoints new managing director
- Al Ramz tops UAE trading in Feb
- IFC in $150m loan deal with Bank Audi
- SME funding focus for Abu Dhabi forum
- Insurance House posts second year of profit
- ETF global assets hit record $2.44 trillion
- Bahrain firms plan IPOs
- Serbia wins $1bn Abu Dhabi loan
- Key equity banker resigns from Saudi Fransi
- DMCC to boost Islamic commodity trade with tie-ups
- IDB, KIA units to invest in Morocco
- First Gulf to set up $1bn sukuk in Malaysia
- Singapore’s UOB Bullion and Futures joins DGCX
- Infrastructure investment ‘key to growth’
- BKIC declares 30pc dividend
- StanChart profit falls 16pc in 2013
- Veteran Saudi banker to head AMF
- Dubai World prepays $284m to creditors
- EFG-Hermes sells Damas stake to Mannai
- Ultra rich number to grow 35pc in Mideast
- Saudi IPO market 'set for big year'
- RAK 'exploring' ceramics unit stake sale
- Bahrain Bourse wins key UK award