- Title: UAE: Egypt to conclude multi-billion dollar IMF loan amid wheat crisis
- Date: 2nd April 2013
- Summary: DUBAI, UNITED ARAB EMIRATES (APRIL 2, 2013) (REUTERS) SENIOR DELEGATES SITTING AT HEAD TABLE IN CONFERENCE HALL / LARGE BANNER BEHIND READING (IN ARABIC): "UNDER THE PATRONAGE OF HIS HIGHNESS SHEIKH MOHAMMED BIN RASHID AL MAKTOUM, VICE PRESIDENT AND PRIME MINISTER AND RULE OF DUBAI - ANNUAL MEETINGS OF ARAB FINANCIAL INSTITUTIONS AND THE FOURTH MEETING OF THE COUNCIL OF AR
- Embargoed: 17th April 2013 13:00
- Keywords:
- Location: United Arab Emirates
- Country: United Arab Emirates
- Topics: International Relations,Economy
- Reuters ID: LVAD5QT2I9FCO6C14BA6XZS84AOE
- Story Text: An International Monetary Fund (IMF) delegation will arrive in Egypt on Wednesday for talks on a multi-billion dollar loan for the beleaguered country, an IMF official said on Tuesday (April 2).
"We have been working with the Egyptian authorities for some time to help them develop a programme that is Egyptian owned, that responds to the economic and financial challenges that Egypt faces and that has broad support. We have had some good discussions over the last few weeks and the team will be arriving there starting tomorrow," said Masood Ahmed during a meeting of Arab finance ministers and central bank governors in Dubai.
Cairo has been seeking to conclude a deal for some months now.
But Ahmed indicated that the final loan amount could vary, according to the country's economic circumstances, which are worsening by the day amid food shortages and price rises.
"We have been discussing previously a figure of 4.8 billion dollars. As to what the amount will be now will be discussed and determined in light of the financing needs Egypt has, and the contribution that the IMF and other sources can make, to fulfill these needs," said Ahmed Reserves of foreign currency in Egypt have fallen to critically low levels, threatening the country's ability to buy in supplies of wheat and fuel.
Egypt buys about 10 million tonnes of wheat a year, around half of its consumption. But officials said the country was planning on boosting its own home-grown production
"We are expecting, God willing, to produce around 9-10 million tonnes this year from a 3.5 million feddan area. We need nine million tonnes of wheat for the national subsidised bread programme, but we can't (store and) utilise it. Last year the total amount that we could store from our own local wheat was 3.8 million tonnes. This year, with the addition of more storage and the improvement of those already in existence, we are expecting to reach 4.5 million tonnes," said Egyptian Minister of Agriculture, Salah Mohamed Abdel-Momen.
Abdel-Momen said Egypt could lessen its reliance on imports if it had more and improved storage facilities.
"The way in which we can solve the wheat crisis is storage. If storage is made more readily available, then we will not have such a big problem (with the supply of wheat) as we do now," he said.
The Egyptian government needs a financial boost to help it pay for food and fuel imports after becoming paralysed by political and economic instability following the ousting of former President Hosni Mubarak over two years ago.
However, any deal with foreign lenders, such as the IMF, is likely to require Egypt to commit to austerity measures, fuelling already heightened tensions in the country.
On Monday (April 1) Egypt raised the price of state-subsidised cooking gas for the first time in two decades, risking renewed protests in the country. - Copyright Holder: REUTERS
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