Egypt seeks more than $ 4.8 bln loan from IMF

Cairo, 16 Aug – (ANA) - Egypt will discuss the possibility of a bigger-than-expected $ 4.8 billion loan from the International Monetary Fund (IMF) this month, when IMF head Christine Lagarde  lead a delegation to Cairo, its finance minister said. Lagarde's presence was requested by Egypt but could signal a fresh determination on both sides to seal a long-awaited accord after new Egyptian President Mohamed Mursi appointed his first government last month. The IMF confirmed in a statement that Lagarde would be present and said the delegation's visit would start on August 22. "Her visit is a reflection of the IMF's continuous commitment to support Egypt and its people during this historic period of transition," it said. During 18 months of political turmoil since the overthrow of autocratic leader Hosni Mubarak, successive Egyptian governments negotiated with the IMF to secure emergency funding that various officials had put at $3.2 billion. No deal has been reached and Egypt's fiscal and balance of payment problems have worsened. An exodus of foreign investors in the wake of the turmoil left local banks shouldering almost all short-term lending to the state, sending its borrowing costs to unsustainable highs. (ANA)

FA/ANA/16 August 2012------------