IMF to Discuss New Loan Program With Egypt, Says Lagarde

Egypt says formally asks for $4.8 billion loan from IMF

Egypt faces "considerable challenges", including the need to restart growth and reduce deficits

IMF technical team to arrive in Cairo in early September to begin work on possible arrangement

“The authorities have indicated that Egypt would like the IMF to support Egypt’s economic program financially to help the country recover and to lay the foundation for strong growth that benefits all,” Lagarde told reporters August 22 after meetings with President Mohamad Morsi, Prime Minister Hesham Kandil, Finance Minister Mumtaz El-Saieed, and other senior Egyptian officials. Egypt has said it is seeking a loan of $4.8 billion.

“We are responding quickly to this request. A technical team will be arriving in Cairo in early September to work with the authorities on their program and discuss possible forms of financial support from the IMF.”

She said that Egypt faced considerable challenges, including the need to restart growth and reduce budget and balance of payments deficits. She also emphasized the importance of creating jobs and supporting small and medium-sized enterprises.

“Getting the country’s economy back on track and raising the living standards for all will not be an easy task. The Egyptian people have legitimate expectations for a better life and greater social justice. We at the IMF stand ready to help,” she said.

Managing the transition

Lagarde said she was pleased to meet with Egypt’s new economic team and to see firsthand how the country is managing its political and economic transition.

“The IMF will accompany Egypt as it undertakes this challenging journey,” she stressed. “It's an Egyptian journey and the IMF is a partner in that journey."

“We are impressed by the strategy that President Morsi and Prime...