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Egypt Likely Not To Receive IMF Loan; Says Former Official

by Yomna Yasser

Dr. Fakhry El-Feky, former assistant to the executive director of the International Monetary Fund (IMF), has ruled out the possibility of receiving the long-awaited US$ 4.8 billion loan by Egypt within the current phase.

El-Feky has explained that Egypt is likely not to receive the loan due to the decline in the country’s foreign reserves which are currently enough to cover only one month and a half. However, the IMF requires that the country shall have foreign reserves not less than US$ 19 billion; an amount that Egypt would not be able to pursue in the meantime.

Moreover, El-Feky stated that the economic situation in Egypt is witnessing multiple challenges, notably the fall of its foreign reserves to US$ 13.6 billion, the budget deficit, balance of payment shortage, increasing inflation and unemployment and the national currency’s decline against the US Dollar in which the latter has managed to exceed EGP 6.70 level.

The values of net international reserves held by the Central bank of Egypt since 2000 are as follows:

Date

Value in US Dollar Billion

June 2000

15.130

June 2001

14.244

June 2002

14.147

June 2003

14.809

June 2004

14.781

June 2005

19.302

June 2006

22.931

June 2007

28.559

June 2008

34.571

June 2009

31.310

June 2010

35.221

June 2011

26.564

June 2012

15.534

December 2012

13.613

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