IMF Expected to Visit Egypt in Coming Days

A team from the International Monetary Fund is expected to visit Egypt in the next few days for negotiations over a $4.8 billion loan, state media quoted a minister as saying on Tuesday. Egypt has been trying to secure the loan to bolster its finances, which deteriorated after a popular uprising two years ago overthrew President Hosni Mubarak and sunk the Arab country into political turmoil.

Cairo had agreed the loan in principle in November, but requested a delay in December after a wave of unrest. It has since sent the international lender a revised economic programme. Planning and International Cooperation Minister Ashraf al-Araby denied media reports the IMF had responded negatively to the revised plan. "Egypt has extended an official invitation to the Fund to visit and view its economic reform programme, discuss it and comment on it," state news agency MENA quoted Araby as saying, adding the visit was expected "within the next few days." But on Monday the IMF said there was no date set yet for a visit to Cairo.

President Mohamed Mursi has seemed reluctant to accept reform and austerity measures that would come with a full IMF deal before parliamentary elections. However, the budget deficit is also soaring and his options for foreign help are narrowing, especially as Cairo's wealthy benefactor, Qatar, signalled on Monday it was not yet ready to offer any more money. A finance ministry official said on Monday Egypt was studying an IMF offer of a bridging loan.