CAIRO: In what experts and NGOs are saying is a strange development, Egypt has reportedly asked the International Monetary Fund (IMF) to increase the previous demand of $4.8 billion for a loan, the planning minister was reported to have said in comments published by three local newspapers on Sunday. It comes as NGOs and activists continue to call for the loan agreement to be scrapped, telling Bikyanews.com that it would put unnecessary pressure on the middle and lower classes in the country economically. “Egypt will intensify its efforts in the spring meetings of the IMF in the period from April 16-21 to receive additional funding to cover the financing deficit until mid-2015,” Ashraf El-Araby said in remarks carried by Al Masry Al Youm newspaper. An IMF delegation is in Cairo for loan talks and Araby is one of the ministers involved in the negotiations. “There are ongoing discussions to increase the loan, estimated at $4.8 billion but it may rise, especially with the increase in the budget deficit to $20 billion,” he was quoted as saying. He gave no new figure and said the talks were not easy. The minister was also quoted by Al-Mal financial daily that if a deal is not reached before May, talks will be postponed until October when parliamentary elections are expected to start. Egypt had initially agreed with the IMF on the loan in November to contain a budget deficit. The agreement was frozen at Cairo's request in the wake of an unrest triggered by a decree issued by President Mohamed Morsi that gave him sweeping powers and shielding his decisions from the judiciary. Egypt's budget had been affected by two years of political unrest and economic turmoil since the ouster of former president Hosni Mubarak. The country's foreign currency reserves fell to critically low levels, threatening its ability to import essential supplies such as fuel and wheat. There is much discontent over the loan agreement, but Cairo appears ready to continue to move forward on inking the deal that it says will shore up spending pitfalls. BN
