Egypt declines $750 million International Monetary Fund rescue loan, working for $4.8b loan

CAIRO – Egypt’s finance minister says the government has rejected an offer of a $750 million rescue loan from the International Monetary Fund.

The offer came after delays in finalizing a $4.8 billion loan to bolster Egypt’s battered economy.

Finance Minister Mursi Saeed Hijazi says Egypt is working on an economic reform program and is focused on negotiations for the larger IMF loan, explaining why Egypt declined the $750 million IMF rescue.

He said Tuesday that Egypt’s economy is on the path to recovery.

The loan, part of the body’s Rapid Financing Instrument, would not have been a substitute for Egypt’s multibillion dollar request.

Egypt’s economy has struggled in the past two years due to political turmoil. Foreign currency reserves have dropped to a critical level of $13.5 billion.