Egypt and the IMF: together again?

As predicted, Egypt is reconsidering its earlier rebuff of the International Monetary Fund’s offer to help the country close its budget gap. Via Reuters: "Everyone knows that the IMF has proposed a package of aid of $3.2 billion. At the time we were hesitant. Now we won’t change our stand but we are changing our ...

By , a professor at Indiana University’s Hamilton Lugar School of Global and International Studies.

As predicted, Egypt is reconsidering its earlier rebuff of the International Monetary Fund's offer to help the country close its budget gap. Via Reuters:

"Everyone knows that the IMF has proposed a package of aid of $3.2 billion. At the time we were hesitant. Now we won't change our stand but we are changing our attitude," [Finance Minister Hazem el-]Beblawi, who took over the portfolio in July, said at a gathering of reporters, officials and executives.

"In the beginning we said we don't like (it). Now we don't take any stand, we are discussing and everything is taken into consideration," he said when asked about what foreign sources of financing Egypt was looking for.

As predicted, Egypt is reconsidering its earlier rebuff of the International Monetary Fund’s offer to help the country close its budget gap. Via Reuters:

"Everyone knows that the IMF has proposed a package of aid of $3.2 billion. At the time we were hesitant. Now we won’t change our stand but we are changing our attitude," [Finance Minister Hazem el-]Beblawi, who took over the portfolio in July, said at a gathering of reporters, officials and executives.

"In the beginning we said we don’t like (it). Now we don’t take any stand, we are discussing and everything is taken into consideration," he said when asked about what foreign sources of financing Egypt was looking for.

Egypt’s foreign reserves dropped $1 billion to $24.01 billion at the end of September from $25 billion at the end of August, a sign of further capital outflows according to analysts. 

Update: A Fund spokesperson reports that an "IMF staff team [will] travel to Cairo in the next few weeks to take stock of developments in the economy."

David Bosco is a professor at Indiana University’s Hamilton Lugar School of Global and International Studies. He is the author of The Poseidon Project: The Struggle to Govern the World’s Oceans. Twitter: @multilateralist

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