Fitch Says IMF Loan Request Positive For Egypt

A senior analyst at global ratings agency Fitch said today that Egypt’s request for a $4.8 billion loan from the International Monetary Fund (IMF) is positive for the country’s economy but will not have a short-term impact on its rating, according to Reuters.

“It’s positive that talks have renewed,” Richard Fox, head of Middle East and Africa sovereign ratings at Fitch, told Reuters in a telephone interview.

“There is no immediate impact on the rating, we are awaiting developments,” he added.

Egypt requested the larger-than-expected loan from the IMF this week. The country hopes for a deal by the end of the year, officials said during a visit to Cairo by IMF chief Christine Lagarde.

Fitch cut Egypt’s rating to B-plus with negative outlook in June, citing political risk.

Mubasher