Bankers affirmed the statements of Jerry Rice, press secretary of International Monetary Fund, that IMF conditioned its US$ 3.2 billion loan on the approval of all Egyptian political powers. Bankers added that IMF loan became an urgent need amid the economic turmoil in Egypt; as growth rates declined, foreign reserves retreated to US$ 15.1 billion at the end of last March and national debt highly increased. El-Sayed El-Kaseer, chairman of Industrial Development& Workers Bank, said that IMF held meetings with different political powers to get their approval on the loan. International institutions are not fully certain when dealing with transitional governments especially in taking long-term decisions, El-Kaseer noted. El-Kaseer added IMF approved in principle granting the loan but conditioned setting a reform program in accordance with the economic repercussions Egypt has witnessed. When assured of economic and political standards guaranteeing its rights, IMF will lend Egypt, El-Kaseer expected. Saeed Zaky, member of the board of directors of Egyptian Gulf Bank, considers that IMF's statements came as some political powers expressed their disapproval of the loan. Political powers shall reach a consensus to convince IMF of Egypt's aim for the loan, Zaky noted. Zaky assured that Egypt is in an urgent need for the loan as the country's revenues and foreign reserves are falling. Egypt will receive the loan after the presidential elections, Zaky expected. The burden is increasing on the government due to national debt increase; as the return on treasury bills offered by Central Bank of Egypt reached 16% in many auctions. The government shall cut out expenditures of energy subsides for heavy industries which will reduce the burden on the country, Zaky suggested. Momtaz El-Saeed, minister of finance, said earlier that the government aims that People's Assembly (Lower House of Parliament), political powers and concerned bodies will reach a consensus over IMF's agreement. IMF loan will affirm Egypt's ability for recovery which will in turn attract investments, grants, contributions and loans. El-Saeed concluded that IMF loan will help Egypt finance its budget deficit and support foreign reserves.
