Report: IMF says no conditions on $3.2B Egypt loan

AP News
Posted: Jan 18, 2012 2:20 PM
Report: IMF says no conditions on $3.2B Egypt loan

Egyptian newspapers on Wednesday quoted the regional head of the International Monetary Fund as saying that the body will not impose conditions on Egypt as the country seeks a $3.2 billion support package to shore up a burgeoning budget deficit.

An IMF statement from Washington did not mention conditions.

IMF Mideast and Asia head Massoud Ahmed was quoted by the state-run Al-Ahram newspaper and the independent Al-Masry Al-Youm on Wednesday as saying that Egypt should draft its own economic program, and that the IMF should not impose conditions.

He said issues like energy subsidies and tax irregularities could not be resolved immediately.

An IMF delegation arrived on Monday to discuss the proposed loan.

The IMF statement called the meetings "productive." It noted that Egypt's economy, "despite its solid and sound fundamentals, is facing a number of difficult challenges," requiring an economic recovery program that creates stability.

The statement gave no indication of the views of the IMF delegation about the desired content of the economic plan.