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The International Monetary Fund (IMF) urged the Egyptian government to "mobilize required political support" for reforms and for the 2012-2013 budget in a statement made, as it concluded its visit to Egypt. The global financial organization stated it would "remain in close contact with the authorities in the coming weeks", whilst Egypt finalizes the remaining details of the economic program. The $3.2 billion loan arrangement to Egypt will be signed after details of the country's reform program, including next financial year's budget, have the majority backing of political parties in the parliament, the IMF stated. Approval on financial support to Egypt is bound to other bilateral and institutional donors' consent, the international body explained in the note issued 10 April.
The Egyptian government presented the IMF with an economic reform program last month, which included several prudential measures along with a tax shakeup. Members of the parliamentary budget committee have slammed the proposed program on several occasions, illustrating a growing political rift between Egypt’s government and the People's Assembly. Accordingly, the IMF highlighted the necessity of uniting party support for the program. The long awaited loan is set to support Egypt's struggling finances, including a widening budget and balance of payment deficits. The country’s international reserves have been severely depleted since January 2011 as economic activity stalled and flow of foreign currency dried up following internal unrest during the January 25 Revolution. The IMF’s $3.2 billion facility is seen by many as Egypt’s remaining lifeline to avoid a looming crisis highlighted by sporadic currency depreciation and astronomical inflation.
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