As aid pumps in from Gulf, Egypt no longer needs IMF, says minister

The Central Bank of Egypt (CBE) received a US$2 billion deposit from Kuwait on Thursday, reported the privately owned daily Al-Shorouk.

CBE governor Hesham Ramez issued a statement Thursday morning announcing the deposit.

This is one installment of US$12 billion in aid pledged by Saudi Arabia, Kuwait and the United Arab Emirates in the aftermath of former President Mohamed Morsi’s removal from office by the Armed Forces on July 3.

On September 19, Ramez announced that Egypt returned US$2 billion in aid to Qatar — a strong ally of the deposed Islamist president — after negotiations failed to convert the funds into three-year bonds.

Also on Thursday, Finance Minister Ahmed Galal said that the Cabinet would pump LE22 billion into developing infrastructure and public health services, as well as covering the government’s debts to contractors and improving living conditions in impoverished areas, reported the privately owned Al-Masry Al-Youm (AMAY).

The Cabinet was regulating the state budget, thus decreasing pressure on the Egyptian pound and hence phasing out black market activities, Galal added.

The minister also claimed that Egypt does not need aid from the International Monetary Fund or the World Bank, as less expensive resources are now available, reported the state-run news site Egynews.

Egypt may need to borrow from these institutions in the future, but for now the government is developing a new plan to boost the economy, Galal asserted.