Egyptian President Mohamed Morsi and president of the International Monetary Fund Christine Lagarde, yesterday, features the economic reform program of the Egyptian government, with spokesman said President that Cairo formally requested 4.8 billion loan from the International Monetary Fund, during a visit by Lagarde to discuss support economy country.The spokesman Yasser Ali told "Reuters" during talks between Lagarde and Mercy "officially asked $ 4.8 billion loan from the IMF and the talks taking place inside now on demand," adding that "no details will be announced later." He also stressed Monetary Fund official also apply.Egypt needs the loan to cover the budget deficit resulting from the decline in tourism revenues and foreign investment.And foreign currency reserves fell to less than half their level before the popular uprising against former President Hosni Mubarak last year, as the central bank began to sell dollars to support the Egyptian pound.The government is facing a crisis in the balance of payments and the rising cost of borrowing and banks assume the brunt of the local government lending. Experts say the financial support urgently needed to avoid a devaluation of the local currency.Following her meeting with Mursi and Egyptian officials, said Lagarde that the Fund wants to support Egypt and that a delegation from confer on the details of financing package to help the economy, noting that the details and conditions of the loan are still under discussion, and that team Fund will be further talks on Thursday in Cairo before returning to Washington then go to Egypt again for further discussions.Egyptian television reported that the meeting dealt with the dimensions of the Egyptian economic reform program and the plan developed by the Egyptian government to stimulate economic performance to the next phase, he said, adding that Mursi Lagarde discussed the features of the loan that Egypt intends to be obtained from the Fund to support the monetary reserves at the Central Bank of Egypt.Lagarde held and the accompanying delegation to meet with Prime Minister Hisham Qandil, in the presence of Central Bank Governor Farouk node and Premium Finance Minister Saeed, the representative of the Arab group in the IMF Abdul Shakour Shaalan.The talks dealt with the review program of economic reform and the plan developed by the government to stimulate economic performance during the next phase, also addresses the completion of negotiations on the loan that Egypt intends to be obtained from the Fund to support the cash reserve at the central bank.Said Kandil in a press conference with Lagarde that the conditions the IMF is "acceptable", but gave no other details, and hope to reach Egypt to agree on a loan with the International Monetary Fund before the end of the year or sooner than that, pointing out that the goal of this visit Fund is to show support for the Egyptian economy and the start of negotiations for an agreement on the loan by the end of the year or within two months or as time permits.The finance minister said last week that Cairo would consider the possibility of providing the Fund for a loan larger than expected.Egypt called Lagarde to visit, what may indicate renewed determination from both sides to conclude a long-awaited agreement after a Mursi, who took office on 30 June his first government last month.During the 18 months of political turmoil since the overthrow of Mubarak, successive Egyptian governments negotiated with the IMF for emergency funding. But no agreement had been reached, while aggravated problems in the budget and balance of payments.And causing the displacement of foreign investors following the unrest in the banks bear most of the burden of state lending. The government also borrowed directly from the central bank. And foreign reserves dropped to less than half the levels before the popular uprising against Mubarak last year, and return investors' reluctance to return in part to fears of a sharp decline in the value of the currency may erase any returns.The agreement with the IMF to help Egypt in giving credibility to the economic reforms necessary to restore investor confidence.
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