So, just read this morning: Last week, however, a committee formed of the central bank's governor, as well as ministers of finance, planning, industry and supply, indicated that foreign borrowing has become a necessity for the Egyptian economy to cover the deficits in budget and the balance of payment, along with the drop in international reserves. The borrowed amount will range from $10 billion to $12 billion, the committee indicated.    http://english.ahram.org.eg/News/30881.aspx

And earlier in November that "Deputy Prime Minister Hazem El Beblawi had said in a Nov. 18 interview that Egypt may ask the IMF for the $3 billion loan it rejected earlier this year as domestic borrowing costs soar."The below is FROM LAST MAY! (and just to keep track we have received $0.5B from Qatar and Saudi, each, and nothing else despite the over $20B "offered"  http://www.ft.com/cms/s/0/283fbe50-9e68-11e0-8e61-00144feabdc0.html?ftcamp=rss#axzz1QMlDUVxd 

Around October "Egypt is in talks with Saudi Arabia and the United Arab Emirates for $5 billion in loans to finance the budget deficit"  http://www.businessweek.com/news/2011-11-30/egypt-may-seek-3-billion-loan-from-imf-as-debt-costs-soar.html 

Below is from last May... (just to keep track, of which Saudi and Qatar have each given us $0.5B from the over $20B offered to us globally)... Still perplexed as to why we rejected IMF loan, it does seem to good to be true but apparently we gave up on taking advantage of that!

Problem
: $10-12 billion balance of payments gap for the fiscal year that begins on 1 July, economists say.

1.IMF: ~$3B

The International Monetary Fund agreed Sunday to lend Egypt $3 billion with few stated conditions to help the country mend its ailing economy.

Egypt's finance minister, Samir Radwan, and the deputy director of the IMF's Middle East and Central Asia Department, Ratna Sahay, at a news conference announced a 1.5% interest rate on the one-year loan, which is to be paid in full within five years.

 The loan's terms mark a departure from the more forceful conditions the IMF usually imposes in the form of austerity measures, such as increased taxes and lower subsidies.

 Ms. Sahay and Mr. Radwan said the terms of the loan were part of a "home-grown" financial plan designed for the most part by Egypt's transitional government and aimed at improving living conditions for Egypt's poor.

Imposing rigorous reform conditions would be inappropriate, they said, given that Egypt's unelected transitional government lacks a firm mandate for economic change.

"Of course the IMF in Egypt is usually linked to conditionality—this is the history of the IMF," Mr. Radwan said. "This [loan] does not require any kind of conditionality as it did in the past."
Despite the IMF's praise for the budget proposal, both Ms. Sahay and Mr. Radwan said they had reservations, particularly concerning the budget's 26% spending increase on subsidies for "essential commodities." But the goals of the loan focus on ensuring social stability in the short term, Ms. Sahay said.

"As we can see with Egypt, one of the biggest drivers of the government is social justice," Ms. Sahay said. "If that is the priority of the government and the Egyptian people, we respect that priority."

2.Qatar: $10B+ (in addition to treasury purchases)

a."I believe these projects, when implemented, will surpass $10 billion, and they will be productive products in Egypt," al-Ahram quoted Ambassdor Saleh Al-Buainein as saying.

b.Samir Radwan had earlier mentioned that Qatar's government was prepared to finance a port in the western outskirts of Alexandria at Malahat, which it said would be the world's largest, al-Ahram said.

3.Saudi: $4 billion that includes a $1 billion deposit at the Central Bank of Egypt and $500 million in bond purchases

4.USA: $2B that includes up to $1B in debt and guarantee another $1B in borrowing to finance infrastructure and job creation.

5.World Bank: $6B over 2 years ($1.2B in already existing support)

a.The support includes $1 billion for Egypt’s budget this year linked to governance and openness reforms with a further $1 billion available next year dependant on progress. The balance would be made up of investment lending for specific projects, financing for private businesses and political risk and guarantees. The Bank is already working on a $200 million support program for labor intensive public infrastructure and is disbursing another $1 billion over the next 24 months from existing loans.

6.EBRD: 2.5B Euros for the region



Some details:

http://www.ahram.org.eg/542/2011/05/23/3/79775/219.aspx
لماذا كانت الاستثمارات القطرية في مصر قبل ذلك ضعيفة؟
الاستثمارات القطرية في مصر لم تكن ضعيفة فقد جاوزت500 مليون دولار في الفترة السابقة, والأمر الآخر أنه مع احترامي للإجراءات المتبعة في مصر.. كان يوجد بطء في تعاملها مع الدول فقد كانت مصر تشجع الاستثمار بطريقة كلاسيكية بينما تحتاج المشاريع ورجال الأعمال الي جو عام واضح وتنفيذ سريع وشفافية في الطرح بين الجانبين, وهذه الفوائد تستفيد منها الأطراف كلها علي المستوي الثنائي أو علي مستوي العالم كله.. ولذلك نتمني علي مصر في المرحلة المقبلة أن تركز علي قوانين الاستثمار وتسهيل عملية الاستثمار وتخصيص الاستثمار المطلوب وتحديده لنعرف ماذا تريد مصر من العالم؟ وما هي أولويات المشاريع التي تحتاج إليها؟ أعتقد أن هناك رغبة كبيرة في الاستثمار من جانب قطر ودول عربية كثيرة

http://www.ahram.org.eg/542/2011/05/24/25/79685/219.aspx
وكان وزير المالية الدكتور سمير رضوان قد كشف عن استعداد الحكومة القطرية لتمويل إنشاء أكبر ميناء في العالم بمنطقة الملاحات بالإسكندرية.

http://www.arabia.msn.com/Business/Economy/AF/2011/April/4460568.aspx
The North African nation attracted $2.3 billion in direct foreign investment in the first half of the current fiscal year, he said. Egypt used to receive between $7 billion and $8 billion annually before the revolution that toppled President Hosni Mubarak in February.

http://www.ebrd.com/russian/pages/news/press/2011/110521b.shtml
The EBRD is already considering a request by Egypt to become a country of operations and Morocco, another EBRD shareholder, has more recently expressed a similar interest in becoming a recipient of investments by the Bank.

Further political decisions will be taken in the weeks and months ahead. EBRD President Thomas Mirow has indicated that the Bank would have the capacity, eventually, to invest as much as €2.5 billion a year in that region. 
 


Comments

01/05/2012 19:55

Yet the corruption keeps going on - from the upper levels of course!

http://www.atimes.com/atimes/Middle_East/MJ18Ak01.html

One example is amusing. In mid-September, Egypt banned exports of palm fronds (lulavs) for ceremonial during the Jewish festival of Succoth (Tabernacles), out of rancor towards the Jewish state. The palm fronds nonetheless arrived, as the Israeli newspaper Ha'aretz reported on October 11: "The lulav traders utilized long-existing ties with senior officials in Egypt, and succeeded to covertly purchase a large amount of lulavs. According to one of the traders in New York, a senior official in Cairo received $100,000 to aid in smuggling the palm fronds outside of Egypt."

"In the Mediterranean town of Alexandria earlier this week," the Gazette reported on September 27, "the military police seized 4.3 million liters of diesel hidden in stores ready for smuggling." While Egyptians faced 24-hour queues for diesel fuel at gasoline stations last summer, tankers reportedly were waiting at Port Said on the Suez Canal to pump diesel oil from storage facilities.

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