Egypt Independent

IMF chief says back to the drawing board on Egypt talks



The International Monetary Fund

said on Thursday it has not reached a deal with Egypt regarding a loan program, adding that much more work needs to be done on the matter.

Egypt's decision last year to change course regarding planned changes to economic policy had set back progress with the IMF on loan deal talks, IMF chief Christine Lagarde said in a news conference.

"We've gone back to the drawing board," Lagarde said. "There is clearly more work to be done."

Senior Egyptian officials arrived in Washington, DC Wednesday for International Monetary Fund and World Bank meetings amid ongoing loan negotiations, state-run news agency MENA reported earlier on Thursday.
 
Finance Minister Morsy Hegazy, Planning and International Cooperation Minister Ashraf al-Araby and Central Bank Governor Hesham Ramez traveled to attend the spring meetings of the IMF and World Bank and meet with American officials.
 
An International Monetary Fund delegation left Cairo Tuesday after failing to reach an agreement on the terms of a US$4.8 billion loan to aid the struggling Egyptian economy. 
 
An initial November agreement over the loan reached was suspended when President Mohamed Morsy went back on planned tax increases.
 
IMF mission chief Andreas Bauer said in a statement on Tuesday, however, that the negotiations are progressing.