Yet more delays for crucial IMF-Egypt deal?
Is crucial deal between the IMF and Egypt off the table?
Click here to add Alaa El Hadidi as an alert
Disable alert for Alaa El Hadidi,
Click here to add Cairo as an alert
Disable alert for Cairo,
Click here to add Egyptian parliament as an alert
Disable alert for Egyptian parliament,
Click here to add Hatem Saleh as an alert
Disable alert for Hatem Saleh,
Click here to add Hisham Qandil as an alert
Disable alert for Hisham Qandil,
Click here to add International Monetary Fund as an alert
Disable alert for International Monetary Fund,
Click here to add Mohamed Morsi as an alert
Disable alert for Mohamed Morsi,
Click here to add Reuters as an alert
Disable alert for Reuters
Egypt denied on Monday that a $4.8 billion loan requested from the International Monetary Fund would be put to a yet-to-be-elected parliament for approval, a move that could have delayed the dispersal of funds.
Any hold-up could shake the confidence of investors who have been cheered by Egypt's progress with seeking the loan, needed to plug holes in the country's budget and balance of payments.
Alaa El Hadidi, the spokesman for Prime Minister Hisham Qandil, said that in the absence of a parliament - the chamber was dissolved in June - President Mohamed Morsi had legislative powers and could approve any agreement.
"In accordance with the constitutional declaration, any international agreement needs to be approved by the legislative authority, and in the absence of parliament, President Mohamed Morsi is empowered to take such decisions," he told Reuters.
Similarly, Hatem Saleh, minister of Industry and International trade also confirmed on Monday that Egypt will go ahead with the loan agreement despite the absence of an elected legislative body.
"The constitutional declaration solves this problem for Egypt," he said on Monday during an investment conference hosted by Beltone Financial in Cairo.
Earlier, Egyptian state TV carried a report quoting Qandil as saying the IMF deal would be put to parliament. With parliamentary elections potentially several months away, that could push back the release of funds
"Prime Minister Hisham Qandil said that the loan to be agreed upon with the IMF of $4.8 billion will be presented in Egypt's new parliament before it is passed," an anchorwoman said during the state news broadcast.
The International Monetary Fund said on 19 September it will send a mission to Egypt in coming weeks to discuss possible financial help once the government has finalized its economic program, and hopes to conclude the loan talks by year end.
Elections to the Egyptian parliament are due to take place following the completion of a new constitution, which must first be approved in a referendum.
- Al Tayer bucks the US department store trend with Bloomingdale's Kuwait opening
- Gulf Islamic banks set to outperform conventional banks for second year: Moody's
- Jordan secures EU finance for socioeconomic and environmental programs
- Same-day service deliveries in GCC an untapped market: Wing CEO
- Will terror attacks damper Arabs' appetite for European holidays?