An International Monetary Fund (IMF) delegation arrived in Cairo on Monday to negotiate a $3.2 billion loan with the government. The delegation headed by IMF Director for the Middle East and North Africa Masood Ahmed is projected to last for a few days.
A member of the delegation told Ahram Arabic that negotiations will focus on how to reach the best loan conditions in order for Egypt to be granted a $3.2 billion loan. This would exceed Egypt’s allowed share that is fixed at $ 1.9 billion.
The source, who requested anonymity, said the IMF raised its ceiling for loans because of the conditions currently faced by the Arab spring countries and the Euro zone countries.
In June 2011, Egypt's military rulers rejected a $3.2 billion facility from the IMF just before a deal was concluded. They cited their unwillingness to increase Egypt's foreign exposure as reason for their decision. However, with the continued deterioration of Egypt's fiscal status, along with mounting pressures on the local currency, Egyptian officials resumed negotiations with the global fund.
The IMF visit was postponed twice, once after the military attacked protesters staging a sit-in outside the Cabinet building on 16 December and than earlier in January on the request of the Egyptian government.