IMF’s ‘Harsh’ Legacy Blocks Middle East Loans After Egypt U-Turn - Bloomberg

Egypt turned down International Monetary Fund loans that would have helped the economy because the lender was seen as tainted by concessions demanded of past borrowers, former Finance Minister Samir Radwan said.

“People are still affected by the past, when the IMF used to impose harsh conditions,” said Radwan, who axed a $3 billion accord with the IMF in June within three weeks of negotiating it. He then lost his job in a July 17 reshuffle aimed at placating protesters demanding faster change after the toppling of former President Hosni Mubarak, who is due in court this week on corruption charges.

The IMF loan was offered with few strings attached and was vetoed by Egypt’s interim military rulers after a “damaging” media campaign, even though the North African country needed the cash, Radwan said in a telephone interview on July 27. The reversal shows how hard it may be for the IMF to shake off the legacy of past policies, even after admitting mistakes.

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