Egypt Turmoil Puts IMF Cash at Risk as Mursi Halts Tax Rises

Mohamed Mursi’s focus on defusing a resurgent protest movement in Egypt is starting to derail his plans for rescuing the economy with a $4.8 billion International Monetary Fund loan.

Mursi’s decision to hold a Dec. 15 referendum on a new constitution has polarized the country and sparked rival demonstrations, most recently last night, that have sometimes turned violent. Egypt’s government said yesterday it asked the IMF to delay next week’s meeting to approve the loan, probably until January. As protests escalated, Mursi suspended a raft of tax increases aimed at meeting IMF concerns about the region’s biggest budget deficit.