Egypt confident of meeting preconditions for $8 billion external loan

Egypt's Finance Minister Ahmed Kouchouk said on Wednesday he is confident Egypt is hitting targets set by the International Monetary Fund over the country's $8 billion loan programme and expects the next review to be completed by September or October.

The fund announced earlier this month that it would combine the fifth and sixth reviews of Egypt's support programme to give authorities more time to meet critical objectives of its economic reform programme.

"Both sides, are working on the expectation that this should be happening in September, October," Kouchouk said on the sidelines of an event at the London Stock Exchange.

"The IMF is after certain targets – and that's what's important."

Increasing role of private sector in economy

A successful agreement on a review and subsequent sign off by the Fund's executive board triggers payment of a tranche.

Kouchouk also said he expected the government to complete three to four privatisation transactions before the end of the current financial year that started earlier this month.

The IMF has made increasing the role of the private sector in the economy a requirement of an expanded $8 billion loan, and Egypt's cabinet said earlier this year it would offer stakes in military-owned companies through its sovereign wealth fund to help comply with the Fund's requirements.

"It will be across a lot of sectors, but we have shared also a very strategic plan, a medium-term plan with the international institutions, including the IMF and others, with a very clear, visible timeline," added Kouchouk.