Share This Page

IMF: Egypt's financial situation deteriorating

| Thursday, May 9, 2013, 9:54 p.m.

WASHINGTON — The International Monetary Fund said Thursday that Egypt's financial situation is deteriorating and the lending agency won't move ahead with a $4.8 billion loan until receiving updated economic information and reform plans from President Mohamed Morsy's government.

Negotiations have dragged on for more than a year for the crucial funding, which is expected to usher in unpopular austerity measures. But by building confidence, the money could open the door for more loans and investment.

IMF spokesman Gerry Rice told reporters that the agency was working with Egypt to ensure that the loan package would successfully address “rising fiscal and balance of payment imbalances” and lead to broad economic growth.

Strains in Egypt's economy include a widening budget deficit and shrinking foreign currency reserves.

The 2011 uprising that toppled Egypt's longtime autocratic ruler, Hosni Mubarak, dealt a blow to foreign investment and tourism, a main revenue source. Neither has recovered, with investors and tourists still scared away by unrest and political turmoil.

An attack on an American in Cairo on Thursday contributed to the fear.

An assailant stabbed the man while they were standing outside the U.S. Embassy, security officials said.

Embassy spokesman David Ranz confirmed that a U.S. citizen was stabbed near the embassy, and said he was immediately rushed to the hospital.

TribLIVE commenting policy

You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.