Central Bank of Egypt (CBE) Governor Tareq Amer said the singing of a loan agreement with the International Monetary Fund (IMF) is a watershed moment for Egyptian economy.

Speaking at a press conference Thursday, Amer said that as he came to office, there were structural flaws in the Egyptian economy that had to be fixed through a national reform program.

The reform program aims to lay down a financial and monetary basis for development, he said.

Earlier, the Egyptian government and the IMF mission reached an initial agreement for a three-year $12 billion loan. The agreement is subject to approval by the IMF’s Executive Board, which is expected to consider the Egyptian request in the coming weeks. 
Asked about UAE assistance worth $2 billion, which was expected to reach Egypt last month, CBE Governor Tareq Amer said Arab Gulf countries have their own challenges and “we have to depend on ourselves.”

The IMF loan sends a message about the return of foreign investment flows and it will calm down the exchange market, Amer said during a press conference held with Finance Minister Amr el Garhy on Thursday.

The country is facing several challenges but the government and leadership are trying to overcome them, he said, stressing that trust should be given to the current leadership as Egypt is about to carry out a national program on the Egyptian monetary.

Meanwhile, Finance Minister Garhy said the government has no intention to give up other IMF loan tranches. 
The finance ministry is making serious bids to fix financial imbalances and reduce the debt-GDP ratio, the minister said.

Foreign reserves have plunged in the past periods with the country acquiring several grants to meet the citizens’ needs and the tourism sector falling down, he added.

The CBE devalued the local currency in March and adopted financial measures afterwards to reduce the budget deficit and debt, the minister said.

The measures required financial and economic reforms and improving the investment stage and social protection networks to reach those who deserve the subsidy, he concluded.