Cairo invites IMF team to discuss loan deal
Thursday 28 February 2013
Printable
EmailEgypt invited an IMF technical team to reopen negotiations on a $4.8 billion (£3.1bn) loan today.
Planning Minister Ashraf al-Araby said he expected the team to arrive within 10 days.
Egypt reached an initial loan agreement in November but postponed ratification following political unrest.
President Mohamed Morsi is facing an economic crisis and the Egyptian pound has lost 8.2 per cent against the dollar since last year.
An IMF deal would unlock billions in financial support but would bring with it austerity measures - the last thing the embattled government needs.
In a summary of its new plans for the economy, the government has said it aims to increase foreign currency reserves to $19 billion (£12.5bn) by the end of June.
It plans a levy on stock market deals and a flat 25 per cent tax on Egyptian companies, but did not mention cutting subsidies or tax increases that the IMF regularly insists on.
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