WASHINGTON (Reuters) – The International Monetary Fund said on Tuesday it was staying in close touch
with Egyptian authorities as they work out a budget and round up political support that would make an IMF financing package
possible.
a glass carrying the International Monetary Fund (IMF) logo during a news conference in Bucharest March 25, 2009.
REUTERS/Bogdan Cristel
“A financial arrangement to support Egypt’s
economic program will be presented to the IMF Executive Board once this work is completed and external financing from
bilateral donors and other international institutions is confirmed,” the IMF said in a statement.
An IMF mission was
in Cairo from March 25 until Tuesday discussing details of an IMF-backed economic program. Egypt has sought a $3.2 billion
financing arrangement from the IMF, following political turmoil that has heightened balance of payments
pressures.
Earlier this month, the IMF said there would have to be broad political support from all political parties
in the country before loan talks could be concluded, and it reiterated that point on Tuesday.
The IMF statement did
indicate progress was being made.
“There was a shared understanding on the need to address short-term challenges
facing the economy and to promote reforms that can help achieve higher and more inclusive growth going forward,” the IMF
said.
Any deal would need the backing of the Muslim Brotherhood’s Freedom and Justice Party (FJP), which has nearly
half the seats in parliament.
