IMF and Egypt discuss $4.8bn loan

Egypt needs the money to help lift an economy hit by low foreign currency reserves and the weak Egyptian pound.

To get the funds Egypt must convince the IMF that it is serious about carrying out economic reforms.

Egypt's economy has been affected by the country's political turmoil.

Import cuts:

Analysts expect that the Egyptian government will have to agree to economic reforms including tax rises, and cuts to fuel and bread subsidies, in order to reduce its high budget deficit.

The idea is that the IMF would come in and give a green light to open the way for perhaps $15bn worth of funding to come into the economy over the next two to three years”

David Butter
Chatham House
Cairo also needs to carry out reforms to improve overseas confidence in its economy, at a time when the Egyptian pound has lost a 10th of its value since the start of 2013.

Inflation is also running high in Egypt, and a lack of funds has meant that the government has had to cut back on fuel and food imports, sparking protests.