IMF Expects to Send Loan Talk Team to Egypt by End-October

The International Monetary Fund expects to send a team to Egypt by the end of this month for talks on the $4.8 billion loan that the country has requested, the fund’s top Middle East official said.

Egypt needs to develop economic policies with broad public support “to ensure that the program that is developed would be implemented,” Masood Ahmed, IMF director for the Middle East and Central Asia, told reporters at a press conference in Tokyo broadcast on the IMF’s website.

Egypt’s economy is expected to grow 2 percent this year and 3 percent in 2013, the IMF forecasts. The economy probably generated about 250,000 jobs in the past year, while 750,000 young people joined the workforce, Ahmed said.

Asked whether Egypt should devalue its currency as part of an IMF-backed program, Ahmed said that the fund is discussing a “range of measures” with Egyptian officials and it wasn’t appropriate for him to say which ones would be adopted.

To contact the reporter on this story: David Neylan in Ankara at dneylan1@bloomberg.net

To contact the editor responsible for this story: Ben Holland at bholland1@bloomberg.net

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