IMF mission to Egypt next week for loan talks

The International Monetary Fund will dispatch a mission to Egypt next week at Cairos request to launch talks on financial aid to the country, the IMF said Thursday.There will be an IMF mission in Cairo next week to initiate discussions on possible IMF support, IMF spokesman Gerry Rice said.The objective of the mission is to see how the Fund can support an Egyptian program, he added.Since the revolution that overthrew longtime strongman Hosni Mubarak last year, the new authorities in Cairo have hesitated to invite the IMF to help sort out Egypts deep economic problems, including a large fiscal deficit.The economy has slumped since the revolution because of a fall in receipts from its vital tourism industry, a key source of foreign exchange, and an investment climate badly affected by instability and violence.The outlines for a $3.2 billion IMF financing deal has been discussed, according to reports.But Egypts unsettled political situation has contributed to the delay in moving forward on the program, which would likely require deep restructuring of Egypts economic and fiscal management.Rice declined to comment on the potential size of a program.The IMF will use the visit to update its own assessment of the situation, he said.