IMF’s lagarde says seeking $5-6 bln bilateral financing for Egypt

IMF is in talks with senior officials in some countries to persuade them to contribute to about $5 billion to $6 billion in bilateral financing to support Egypt.

International Monetary Fund Managing Director Christine Lagarde told Reuters in an interview on Thursday that she would be spending the next several days speaking with senior officials in a number of countries to persuade them to contribute to about $5 billion to $6 billion in bilateral financing to support Egypt.

The funds are needed to allow a $12 billion IMF loan programme to be approved by the Fund’s board.

“The fact that Egypt has now reached an agreement with the IMF is an indication that they are taking their economic restructuring, their economic objectives seriously, and that should encourage either friendly neighboring countries or other bilateral partners to actually participate in the funding,” she said.

While this is likely to include Middle Eastern and Gulf states that have historically supported Egypt, it also may include other countries that “are willing to chip in” to help Egypt reach its considerable economic potential.