The agreement will later by subject to approval by the IMF's board of directors.

 

Egypt's government expects to finalise the $3.2 billion loan by 15 May, a move it says is vital in helping it tackle a looming $10-$11 billion financing gap over the coming 18 months.

 

On Thursday, Al-Tahrir daily newspaper quoted a deputy from the Muslim Brotherhood's Freedom and Justice Party (FJP) as saying the party has approved the continuation of the loan procedures between the IMF and Egypt.

 

Fahmi Abdo, member of the planning and budget committee of Egypt's parliament, added that the party's approval doesn't necessarily mean they will take advantage of the lending.

 

"It is just an initial approval that means the procedures of arranging the loan can continue," he told Al-Tahrir newspaper.

 

FJP deputies were unavailable for comment when contacted by Ahram Online, with parliament engaged in fierce debates over a proposed law to bar figures from the Mubarak regime from the presidential race.

 

Ahram Online couldn't reach any of the FJP deputies to confirm the news. Parliament was busy debating the controversial disfranchising law.

 

A staff mission from the International Monetary Fund (IMF) visited Cairo from March 25 to 10 April and met with members of the budget and planning, and economic affairs committees of the People’s Assembly.

 

"In the discussions with a wide spectrum of political parties in the People’s Assembly, 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," said a statement from the IMF.

 

Egypt's government and the IMF are discussing an economic reform programme as part of the procedures to grant Egypt the loan.