Minister of Planning Ashraf el Araby on Wednesday asserted that a recent agreement signed between Egypt and the International Monetary Fund on lending Egypt 12 billion dollars over three years will help restore financial and monetary stability.

At a press conference that was held here, he added that the agreement will also help redress the budget deficit. He noted, meanwhile, that several major challenges are still facing the national economy, particularly regarding the growth rate and employment.

He explained that Egypt needs to attain a growth rate of 6-7 percent annually. He added that efforts are being exerted to attract more investments, a state of affairs that requires establishing political, economic and financial stability and security.

He affirmed that major political and security achievements were realized so far.

The foreign currency market in Egypt is suffering now due to sluggish tourism and decrease in the Suez Canal revenues and the remittances of Egyptians abroad, he pointed out.

This negatively affects the balance of trade and balance of payments, he added. 

He further noted that the IMF loan will enhance the hard currency reserves with the Central Bank of Egypt.

Source: MENA