IMF Says Expects January Talks with Egypt

The International Monetary Fund (IMF) said it planned to meet with Egyptian authorities to discuss the country's economic problems but added that any funding would have to be based on benchmarks that had broad political support. Egypt, whose economy has been hammered by the uprising that unseated Hosni Mubarak in February, turned down a $3 billion IMF facility in June, but ministers have indicated the country may now be prepared to return to the negotiating table.

"The IMF team is looking forward to discussions in January with the authorities on their economic programme to address Egypt's difficult economic and financial situation," an IMF representative said in an emailed statement. It said it was too early to discuss specific measures. Economists say Egypt is heading for a currency crisis if it does not swiftly stabilise an economy battered by the political turmoil, which has prompted an exodus of investors and tourists.

Because of worsening economic conditions the country may now need as much as $15 billion to stave off a full-blown financial crisis, some economists say. Dozens of protesters have died in clashes with the army, the budget deficit has mushroomed, the cost of domestic borrowing has increased, foreign reserves have fallen and demand for Egypt's exports has fallen as the global economy weakened.

The IMF said it had remained "in close contact" with Egyptian authorities since early November on possible funding, but security concerns caused it to postpone a planned visit to Cairo in mid-December. Prime Minister Kamal Ganzouri said told the nation on television that Egypt had gone to the IMF but the international body had not responded.