IVORY COAST: Egypt must sell IMF deal to its own people, says IMF chief Lagarde

Record ID: 182268

  • Title: IVORY COAST: Egypt must sell IMF deal to its own people, says IMF chief Lagarde
  • Date: 8th January 2013
  • Summary: ABIDJAN, IVORY COAST (JANUARY 8, 2013) (REUTERS) VARIOUS OF INTERNATIONAL MONETARY FUND CHIEF CHRISTINE LAGARDE WALKING INSIDE FACTORY PRODUCING COCOA SACKS FACTORY TECHNICIAN TALKING TO LAGARDE ABOUT THE PRODUCTION LINE (SOUNDBITE) (English) CHRISTINE LAGARDE, IMF CHIEF, SAYING: "The economic recovery and economic and monetary stabilities are two important steps in the overall stabilisation process. Equally, the IMF needs to have the commitment of the political authorities that can actually endorse the programme, own it, and propose it to the population as theirs. So we need the two sets of conditions." LAGARDE INSIDE THE FACTORY WITH ANOTHER TECHNICIAN EXPLAINING PRODUCTION LINE WORKERS MAKING PLASTIC BAGS (SOUNDBITE) (English) CHRISTINE LAGARDE, IMF CHIEF, SAYING: "We had a growth forecast of 2.1 percent for the U.S. in 2013. With what has been agreed, properly implemented of course, we will be within the parameters that we had set."
  • Embargoed: 23rd January 2013 12:00
  • Keywords:
  • Location: Cote d'Ivoire
  • Country: Ivory Coast
  • Topics: International Relations,Economy,Politics
  • Reuters ID: LVABU68WFE2QD7477J1NFH5BP713
  • Story Text: Lagarde wants Egypt to get IMF deal endorsed by its people in order to further economic recovery.

    Speaking in Abidjan during a tour of Africa on Tuesday (January 8), the head of the world's lender IMF said Egypt's government must endorse a $4.8 billion IMF loan agreement and propose it to the Egyptian people as its own as a step toward stabilising their economy.
    Egypt concluded an initial agreement with the International Monetary Fund in November but postponed conclusion of the deal last month due to political unrest triggered by President Mohamed Mursi's attempt to fast-track a new constitution.
    The political strife sparked a rush to sell Egyptian pounds in recent weeks, sending the currency to a record low against the U.S. dollar and draining foreign reserves. The IMF loan is crucial to plugging balance of payments and budget deficits.
    "The IMF needs to have the commitment of the political authorities that can actually endorse the programme, own it, and propose it to the population as theirs," Christine Lagarde told journalists during a visit to Ivory Coast.
    Analysts view completion of the deal as vital to give the Islamist government credibility with the markets.
    The IMF's Middle East and Central Asia director, Masood Ahmed, travelled to Cairo and met with Mursi on Monday.
    Speaking in Ivory Coast's economic capital Abidjan during her tour of the African continent, Lagarde also commented on last week's "fiscal cliff" deal in the United States, saying that the compromise permitted the IMF to maintain its growth outlook for the world's largest economy.
    "We had a growth forecast of 2.1 percent for the United States in 2013. With what has been agreed - properly implemented of course - we will be within the parameters that we had set," she said.
    However, she added that pending negotiations to raise the country's borrowing limits - the so-called "debt ceiling" - and sequestration posed looming risks.
    "We certainly hope that these matters will be resolved promptly and adequately in order to remove that Damocles sword that is hanging over the U.S. economy," she said.
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