FINANCIAL NEWS

Egypt to restart loan talks with IMF next month: Investment Minister

26 Feb 2013

(MENAFN) Egypt’s investment minister, Osama Saleh, announced that in early March, his country and the International Monetary Fund (IMF) will carry on negotiations over the USD4.8 billion financial aid, reported Arabian Business.

Saleh said that in December, the two parties had almost placed an agreement, however, the change in public opinion affected the agreement and postponed talks.

He added that Egyptian authorities planned to raise money, in part by imposing a 10-percent capital gains tax on initial public offers (IPOs) of shares.

The minister noted that firms established as part of major projects around the Suez Canal and the Upper Egypt Development Corridor will be required to sell shares to the public as a condition of being set up.

According to Saleh, the IMF loan is expected to lower the government’s budget gap, which at the current time stands at between 10.8 and 10.9 percent of gross domestic product (GDP).

It is worth noting that during the current fiscal year through June 30, Egypt’s GDP is projected to expand between 3 and 3.5 percent.

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