Egypt to Study Subsidy Issue

The reform on fuel subsidies in Egypt are being delayed while the government completes more studies. The country’s petroleum minister, Osama Kamel, told Reuters that the country will hold a “social dialogue” on the issue.

The studies come as the IMF says the government needs to reduce expenditures by targeting subsidies more toward the needy in order to secure an almost $5 billion loan from the IMF.  

In an interview with Reuters, Kamal said Egypt would have a major economic problem until the subsidies bill, which represents about a quarter of state spending, is cut.

"Every day we delay restructuring subsidies bleeds state resources," said Kamal, though he declined to give a timeframe for the reform, saying the government needed to "complete all studies and conduct a social dialogue."