IMF calls on Egypt to unify loan interest rates

IMF calls on Egypt to unify loan interest rates

The International Monetary Fund (IMF) called on the Central Bank of Egypt (CBE) to cancel all low-interest initiatives — such as loans to small and medium enterprises, the tourism sector, and real estate financing — stressing the need for unified interest rates in the banking market, according to three government sources that spoke toBloomberg Asharq.

Egypt is currently in negotiations with the IMF on a new loan in order to keep the gains of the first wave of the country’s economic reforms and meet the country’s financial needs in response to the global economic challenges amid the ongoing Russian-UkrainianWar.

Egypt submitted the request for the loan in March. This is the first time that negotiations have dragged on to this extent without announcing a final agreement.

Meanwhile, Prime Minister Mostafa Madbouly said on Monday that the government is in the final stage of the negotiations. This came during the PM’s participation in the third edition of Logos Coptic Youths Forum.

Daily News Egypt (DNE) dug further to find out the reasons behind the IMF’s demands, whether these measures would negatively hit all economic sectors, and whether the government would really cancel these initiatives.

Economist, and American University in Cairo adjunct professor, Hany Genena explained to