CAIRO: An International Monetary Fund (IMF) official said that he does not believe Egypt and the global financial body are to reach an agreement on a $3.2 billion loan by the end of the year. The news comes as Egypt's economy continues to slow and faces massive uncertainty as the government struggles to pay bills. According to a report by Bloomberg business news agency, “the IMF requires approval from the biggest party in parliament,” the official said, speaking on the condition of anonymity because of the sensitivity of the talks. “It's disappointing, but at least it's been announced against the stabilization of reserves," Richard Fox, London- based head of Middle East and Africa Sovereigns at Fitch Ratings, said by phone to Bloomberg. “If they can maintain reserve levels and continue progress toward political transition it's not the end of the world. Still, the fact that things have been pushed back yet again isn't positive." The report comes less than two weeks after an aide to Egypt President Mohamed Morsi said the IMF deal was back on track. “We intend to approach the IMF again," said Amr Abu-Zeid, development finance adviser for the Muslim Brotherhood, in comments published by Reuters. “Give him one week or two weeks, so at least he has a cabinet ... I believe these issues will not go further until they have a cabinet at least," he added. Egypt's state-owned al-Ahram newspaper had reported that a deal was to be signed in June, but the IMF had urged certain procedures were needed in order for the loan to be granted. Masood Ahmed, IMF director for the Middle East and North Africa, said in late May that Egypt still needed to do “some technical work" to finalize its economic program. Masood has claimed there are three important steps that Egypt should take if it wants to go further in the loan procedure with the IMF, referring to the economic program, political support and alternative financial sources. “I think that process (of getting political support) is advancing but I do not think we are at the point yet where we could move forward." “There's still more work to be done to close down those three areas," he said, referring the three important steps to secure the loan. For now, it appears the loan deal is on the back burner.
