PM: Loan agreement with IMF to be signed by end of 2016

Prime Minister Sherif Ismail said Monday night that a loan agreement with the International Monetary Fund (IMF) will be signed by the end of 2016.

Interviewed by CBC channel, the premier reaffirmed that his government would continue to offer subsidies for low-income brackets, especially with regard to electricity, gas, fuel, supply commodities, and social housing. 

During the interview, Prime Minister Sherif Ismail refuted accusations of "trembling hands" in his government.

About 90% of civilian nominees for executive posts in the state turn down the offer, he said, adding only military people accept the posts and shoulder the responsibility.

The premier said he listens to all viewpoints inside and outside the government and a Cabinet reshuffle is expected when officials in charge do not adopt rapid measures regarding any possible problems. 

"We are all working hard and I am not a dictator. We want to rectify the economic situation. Whoever is afraid can leave," Ismail added. 

The government acts to provide the country's stockpile of strategic commodities for six months, he said.

The Egyptian government is interested in controlling prices of foodstuffs in markets, according to Ismail. 

Ismail said "We will find some difficulties and the current phase requires enduring these difficulties. We take into account price hikes and markets and we are working for reaching solutions. The future will change for the better, only if hard reforms are carried out." 
Prime Minister Sherif Ismail said the Egyptian Armed Forces are part of the state and the government acts to benefit from this institution for its discipline and huge potentials.

The government suffers from problems which have accumulated over recent years and the Armed Forces have intervened to help, citing the crisis of formula milk, added Ismail.

The army is running some projects, which will be implemented by Private Sector companies, he said, adding the state plays a pivotal role in economic projects to keep balance in the market.

"The Private Sector is a main partner in the economic system and all basic achievements aim at attracting global and local investments," according to the premier. 

The Private Sector must participate in the different projects, he noted.

Ismail said the Egyptian economy will be capable of paying debts when the country retrieves the tourism movement and lure investments along with oil exploration which will decrease importing fuel and energy and help the economy move forward and uplift exports. 
Prime Minister Sherif Ismail said the government is working "on all tracks" and that investment is not just a new law to be issued, but the government seeks to find several incentives.

The state does not invest, but it provides the infrastructure to set the stage for investment, Ismail added.

"We will consider viewpoints of business communities about the investment law before it is passed to the parliament," Ismail said. 

Egypt is now holding negotiations to get a loan from the International Monetary Fund (IMF), he said, adding if Egypt gets the loan, foreign debts will reach 25% compared to the gross domestic product.

Shifting to sugar crisis, Ismail said the country's current stockpile of sugar is sufficient for at least another three months.

The crisis will be over in a week or ten days, he said, adding sugar is not the pressing problem, but positive steps will be taken to reform the system.

"We will not be surprised by any sugar crisis and we have contracts for 135,000 tons and the current crisis is caused by some practices," the premier said. 
Prime Minister Sherif Ismail attributed price hikes and the creation of "black market" to the heavy turnout in markets.

The government seeks to provide commodities at different retail outlets across the country, said Ismail.

The premier affirmed the country will not return to mandatory pricing, but consultations are underway to adopt mechanisms for dealing with goods.

The government acts to cut down the administrative spending by 15 to 20 percent, according to Ismail.

As for the educational system, he said the government increased spending on education and many classrooms were established over the past year.

"However, I am not satisfied with the educational system. We have started reform, but it needs time."

The premier concluded the government is highly concerned with the health file as well.

Source: MENA