EGYPT'S CENTRAL BANK GOVERNOR CRITICIZES IMF

Cairo, 18 Dhulhijja 1434/23 October 2013 (MINA) – Egypt’s central bank governor has criticized the International Monetary Fund for acting in a “totally unacceptable way” during negotiations over a critical $4.8 billion euro loan earlier this year, a state newspaper reported.

Central Bank governor Hisham Ramez, who was involved in the IMF-Egypt talks before, said that “some figures” in the IMF had dealt inappropriately with Egypt, without giving details, according to Al-Ahram newspaper as quoted by Mi’raj News Agency (MINA).

Months of talks between Mohamed Morsi’s government and the IMF failed to produce an agreement before the army ousted the first freely elected president on July 3.

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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, Reuters reported.

Al-Ahram released Ramez’s comments in advance of an interview expected to air on Wednesday night on an Egyptian television station.

Ramez could not be reached for comment on Wednesday.

Earlier this month IMF chief Christine Lagarde said the Fund was ready to work with Egypt to ‘help stabilize’ the country’s economy, citing discussions that have been ongoing for the past year and a half.

The IMF had been negotiating the critically needed loan with Egypt before the military removed Morsi from office, and the economy after Morsi remains unstable, the media added.

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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.

Ramez said foreign reserves stand at $18.9 billion, up $190 million from last month’s figures announced on October 3.

The country has run through more than $20 billion in reserves, borrowed billions from abroad and delayed payments to oil companies to support its currency since its revolution in 2011 that resulted in the overthrow of former President Hosni Mubarak.(T/P03/P04)

Mi’raj News Agency (MINA)