Egypt blames IMF for loan delay

10 June 2013

Sources close to Egyptian president Mohamed Morsi have claimed the International Monetary Fund (IMF) is responsible for the delay in releasing a $4.8 billion loan to the North African country.

A proposed agreement has been on the table for a while now, but the transaction has hit a few snags.

Essam al-Haddad - one of Mr Morsi's trustees - told the Financial Times that Egypt has done all it can to meet the IMF's demands and it is the international organisation that is causing proceedings to drag on.

Egypt has suffered from high-profile political problems in recent years, with previous ruler Hosni Mubarak being removed from his post in 2011 following a revolution. The violence unsurprisingly had a major impact on the nation's economy, which relies a great deal on tourism.

The IMF wants certain assurances from the country before the loan is granted, such as a phased-out subsidies plan and a sales tax law - both of which have been introduced, according to Mr Al-Haddad.

He told the news provider: "The question [of when a deal would be signed] should be addressed to the IMF. There's always something coming up."

By Gary Cooper

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