Within the Egyptian Center\u2019s framework and concern for the right to knowledge and\u00a0free flow of information which will enable the people to practice their right to monitor\u00a0the governments performance, Khalid Ali and lawyers from the ECESR filed lawsuit number 56810 for the 66th year against the\u00a0president [of Egypt], the prime minister, the president of the Shura Council, and the\u00a0finance minister to obligate them to bring forward the conditions, information, and\u00a0documents requested by the International Monetary Fund in preparation for the USD\u00a04.8 billion loan.<\/p>\n
Recently official newspapers and presidency spokesman, Yasser Ali, and Prime\u00a0Minister, Hesham Qandil, came out and said that the Egyptian government had\u00a0requested a USD 4.8 billion loan from the IMF. The Egyptian government justified\u00a0this request as being assistance from the IMF to begin the economic reform program\u00a0in light of deteriorating economic conditions because of the increased deficit in the\u00a0state budget which reached EGP 150 billion (USD 25 billion), as well as the decline\u00a0in exports and increase in global commodity prices which increases decline in cash\u00a0reserves, leading to further reduction in Egypt\u2019s credit rating.<\/p>\n
The Egyptian side did not provide any details on the loan, but the IMF\u2019s objectives\u00a0indicate that the agreement will focus on increasing revenues by decreasing fuel\u00a0subsidies (gas, gasoline, diesel), and decreasing the sums allocated to hiring\u00a0government employees, increase taxes, and raising the prices of government goods\u00a0and commodities. One of the [IMF] loan conditions is that Egypt is also required to\u00a0provide \u201cfunding\u201d from financial institution as a guarantee to repay its loans.<\/p>\n
The Fund explicitly says \u201cThe Fund provides its financial assistance to member\u00a0countries allowing them the sufficient opportunity to correct the problems related to\u00a0their balance of payments. In this context, national authorities cooperate closely with\u00a0the IMF to develop a policies program, with financial support from the IMF, provided\u00a0that the continuation of financial support is on condition of the effectiveness of the\u00a0implementation of the program, and this clarifies three important points: First: The\u00a0loan will be given in stages, in the case that Egypt does not implement the conditions,\u00a0then subsequent payments will stop. Second: close cooperation will allow the IMF\u00a0administration to monitor the Egyptian currency closely. Third: There is a particular\u00a0program with specific features to cut spending and increase resources- spending\u00a0cuts means that subsidies- especially fuel subsidies- will be reduced as well as sums\u00a0allocated for employment into government. Increasing resources will be by increasing\u00a0taxes and raising government commodity prices. \u2013 Which will be agreed upon, but the\u00a0Egyptian government has decided not to disclose.<\/p>\n","protected":false},"excerpt":{"rendered":"
ECESR Files a Lawsuit to Disclose the\u00a0Terms of the \u00a04.8 Billion USD\u00a0IMF Loan to Egypt Within the Egyptian Center\u2019s framework and concern for the right to knowledge and\u00a0free flow of information which will enable the people to practice their right to monitor\u00a0the governments performance, Khalid Ali and lawyers from the ECESR filed lawsuit number 56810 …<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[876,357,877,871,872,354],"tags":[],"coauthors":[],"class_list":["post-771191","post","type-post","status-publish","format-standard","hentry","category-ifis-en","category-ecesrpressreleases","category-economicpolicies","category-legalwork","category-litigation","category-pressreleases"],"acf":[],"yoast_head":"\n