BRITAIN’S DEBT TO EGYPT

Grey River Argus, 27 June 1947, Page 3

BRITAIN’S DEBT TO EGYPT

LONDON, June 26.

The .-Financial Times said that because of over-valuation of the Egyptian pound, Egypt has a large and growing adverse trade balance. The Egyptian Government is anxious to meet its deficit in the balance of payments out of its sterling balance in London. The Egyptian Government recently approached the Internationa! Alonetary Fund for a loan. It was informed that Egyptian exchange was grossly over-valued. Thi? meant that although the facilities of the fund may not be withheld, the high interest charged on them would be likely to increase Egypt’s adverse trade balance. The Egyptian Minister of Finance is reluctant to agree to devaluation of the pound. Egypt will use every effort to bolster its exchange by trying to cover its deficit out of its sterling credit balance in London, and therefore is not making concessions to Britain in negotiations on the latter’s debt in Egypt.