IMF confirms sending mission to Egypt next week to discuss possible financial support
CAIRO — The International Monetary Fund confirmed Thursday it was sending a mission to Egypt to discuss possible financial aid to the country, even as analysts cautioned that the potential lifeline may not be enough to stem serious economic worries that materialized following former President Hosni Mubarak’s ouster.
Egypt turned down a $3 billion IMF load in June, when officials argued that they did not want to saddle a new, post-Mubarak civilian government with additional debt.
In the aftermath of the popular uprising that toppled Mubarak with ongoing political unrest and instability, the country’s economic situation has deteriorated sharply over the past year, with net international reserves falling by 50 percent and tourism and foreign investment hammered.
With the yields it is forced to pay on bonds climbing, and its sovereign rating repeatedly downgraded by the three major international ratings agencies, Egypt is scrambling to find funds to cover budget shortfalls as it looks to satisfy an increasingly angry population.
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http://www.washingtonpost.com/business/industries/imf-confirms-sending-mission-to-egypt-next-week-to-discuss-possible-financial-support/2012/01/12/gIQAbDiUtP_story.html
