The President explained, during his speech at the activities of the second edition of the World Conference on Population, Health and Human Development, on Sunday, that the circumstances surrounding the region cost Egypt $6 to $7 billion in about 10 months, adding: “The state does not want to increase pressure on public opinion, and I say For the government, if the economic challenge will make us put pressure on public opinion in a way that people cannot bear, then the situation must be reviewed with the IMF.”
Egypt had previously rejected some of the IMF’s demands. In the post-2011 reforms, Farouk Al-Okda, the former governor of the Central Bank at the time, rejected the Fund’s demands to review the entire policies of the Central Bank and interfere in determining and managing the monetary reserve. Al-Okda also objected to one of the terms of the agreement regarding… Reducing the value of the pound, Dr. Farouk’s response was decisive: “Sorry, this topic is not on the table and this is a red line,” according to what was stated by Dr. Samir Radwan, the former Minister of Finance, in press statements in late 2012.
Farouk Al-Okda, one of the most prominent people who assumed the position of Governor of the Central Bank of Egypt during a period that lasted about 10 years (2003-2013).
After 2011, during the era of Dr. Samir Radwan, the former Minister of Finance, the International Monetary Fund had requested a reduction in social spending items and wages, which was rejected by it at the time. Radwan said in a previous interview: “The Fund did not refuse to grant Egypt the loan permanently, and a statement The fund exists and we can refer to it, and these people do not rely on rumours.”
He explained at the time: “The Fund delegation came to Egypt on November 20, 2012 and they agreed in principle to reduce the budget deficit from 11% to 8.5% this year, then to 6% next year. For this to happen, there must be some procedures, and Egypt signed its approval for these.” Procedures, and since that date, Egypt has subsequently entered into problems that reduced growth rates, the general budget, and reserves, which decreased to 12 billion dollars + 3 billion Qatari deposits, which means that the cash reserve is sufficient for 3 months of imports, and the result is that what the Fund agreed upon has become non-existent and does not exist. There is community consensus on the Fund’s loan.”
Before Farouk Al-Okda and Samir Radwan, the late Prime Minister Dr. Kamal Al-Ganzouri, when he assumed the premiership in the 1990s, had asked the World Bank to make amendments to a report the bank had issued on the Egyptian economy, as Al-Ganzouri saw at the time that the report was “unfair.”
During the era of the late President Mohamed Hosni Mubarak, Egypt entered into many negotiations with the International Monetary Fund for an economic reform program. Mubarak said in more than one speech at the time that he was opposed to many of the IMF’s requests, especially regarding reducing the value of the Egyptian pound and lifting subsidies.
On October 9, Prime Minister Dr. Mostafa Madbouly commented on the International Monetary Fund’s postponement of the fourth review of the economic reform program with Egypt.
He added during a press conference that the desire comes from the Fund, due to the busyness in preparing for the annual meetings scheduled for the period between October 21 and 26.
He pointed out that the Governor of the Central Bank, Hassan Abdullah, and the Minister of Finance, Ahmed Kajok, in addition to the ministers of the economic group, will attend these meetings.
The Prime Minister confirmed that all the targets set for Egypt in this regard were achieved.
Source: Al-Masry Al-Youm
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