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FINANCIAL NEWS
IMF delays sending loan-talks team to Egypt
02 Oct 2012
(MENAFN) Egypt’s USD4.8 billion-loan talks with the International Monetary Fund (IMF) have been delayed, as the government needs more time to present its economic reform programme, Reuters reported.
An IMF team was due to visit Egypt at the end of September to discuss the terms of the loan, as the country is in dire need for cash to support its financial balance, which was heavily impacted by the economic turmoil following last year’s popular revolt that ousted President Hosni Mubarak.
Al-Borsa financial daily quoted Egyptian Finance Minister Mumtaz al-Said as saying that the government has to finish with the economic reforms programme before the loan talks to demonstrate its commitment to the IMF.
He added that the programme’s two main reforms are a restructuring of subsidies and taxes.
The IMF is requesting from Egypt to run a programme to cut a budget deficit that widened to 11 percent of GDP since the revolution toppled Mubarak in February.
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