Egypt, IMF reach primary agreement on 4.8-bln-USD grant

Egyptian Minister of Planning and International Cooperation Ashraf el-Arabi announced Tuesday that they have reached a primary agreement with the International Monetary Fund (IMF) to grant Egypt 4.8 billion U.S. dollars to overcome economic problems. "The deal will be referred to the IMF Directorate in Washington in December as a preamble for the final agreement," el-Arabi said at a press conference. El-Arabi added the deal will also be tackled during the Egyptian cabinet meeting on Wednesday. "The agreement with the IMF reflects a complete vision of Egypt to deal with the general budget deficit, to support the foreign exchange reserves, and to reach social justice," he said. Meanwhile, head of the IMF mission in Egypt, Andreas Bauer, said the program will help the Egyptian government get rid of the current economic and social challenges, address the balance of payments and increase the employment rate. A talk between the IMF delegation and the Egyptian government was held earlier in the day. After massive unrest last year, Egypt urgently needs this loan to cover the budget deficits after its foreign reserves fell to about half of the level at the end of former President Hosni Mubarak's era. The government is also facing a crisis in the balance of payments and high borrowing costs. The IMF loan is expected to help avoid the currency devaluation.