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Egypt seeks to increase RM15b IMF loan

People and vehicles are seen caught in a traffic jam in front of the Central Bank of Egypt's headquarters in downtown Cairo. - Reuters picPeople and vehicles are seen caught in a traffic jam in front of the Central Bank of Egypt's headquarters in downtown Cairo. - Reuters picCAIRO, April 7 — Egypt is seeking to increase its previously-requested US$4.8 billion (RM15 billion)  loan from the International Monetary Fund to cover its soaring budget deficit, the planning minister said in comments carried by two local newspapers today.

“Egypt will intensify its efforts in the spring meetings of the IMF in the period from April 16-21 to receive additional funding to cover the financing deficit until mid-2015,” Ashraf El-Araby said in remarks carried by Al Masry Al Youm newspaper.

“There are ongoing discussions to increase the loan, estimated at US$4.8 billion but it may rise, especially with the increase in the budget deficit to US$20 billion,” he was quoted as saying.

The minister told Al-Mal daily financial newspaper that if a deal with the IMF is not reached before May, talks will be postponed until October when parliamentary elections are expected to start.

An IMF delegation is currently in Cairo for loan talks. – Reuters

 

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