CAIRO - Egypt is considering the International Monetary Fund financing it previously turned down and is still in talks with Gulf Arab states for funds of close to $7 billion, Finance Minister Hazem el-Beblawi said on Wednesday. Egypt reached a $3.2 billion deal with the IMF earlier this year, but the previous finance minister turned it down in June, partly because the ruling military council did not want to build up debts. Yields on Egyptian treasury bills rose last month to levels last seen during the global financial crisis in 2008. They have since eased but traders have said Egypt needs external funding to prevent yields surging further. "Everyone knows that the IMF has proposed a package of aid of $3.2 billion. At the time we were hesitant. Now we won't change our stand but we are changing our attitude," Beblawi, who took over the portfolio in July, said at a gathering of reporters, officials and executives. "In the beginning we said we don't like (it). Now we don't take any stand, we are discussing and everything is taken into consideration," he said when asked about what foreign sources of financing Egypt was looking for. The minister has said Egypt, which has forecast a budget deficit equal to 8.6 per cent of gross domestic product in the year to June 2012, was looking at ways to reduce its borrowing from local banks but has given few details. Beblawi visited Washington last month to attend meetings of the World Bank and IMF and said before that trip that he was open to discussing ideas with the IMF. He also said in September that Egypt was in talks on financing worth $5-$7 billion with Saudi Arabia and the United Arab Emirates, but he did not give a breakdown at the time of how much each would offer. On the Saudi talks, Beblawi said on Wednesday: "A few days ago we were discussing a package consisting of various elements worth $3.9 billion." He said the Saudi package would include financing for projects and deposits with the central bank. He said this was in addition to $500 million provided earlier by Riyadh. "We are also discussing a package with the UAE with a total value close to $3 billion," he added.
