IMF says talks constructive on possible Egypt aid deal

The International Monetary Fund said on Sunday it would continue talks with Egypt aimed at agreeing possible financial aid after meeting with government officials seeking a $4.8 billion loan to relieve a currency and budget crisis.

The IMF has said Egypt needs to take bold, immediate action to address its economic problems and has raised the possibility of stop-gap funding to tide it through until after parliamentary elections. Egypt, however, has made clear it wants a full loan.

The country agreed to an IMF loan in principle last November but requested a delay during violent street unrest. Since then it has sought to reopen loan talks with the IMF.

"We've had very good progress, and we had very constructive discussions," Masood Ahmed, director of the IMF's Middle East and Central Asia department, told reporters after meeting Prime Minister Hisham Kandil in Cairo.

Both sides agreed on the need to support a national programme that addresses Egypt's economic challenges, he said, and in a later statement he welcomed the authorities' determination to move forward with an economic reform programme.