Egypt ready to sign for IMF loan in March

Egypt will seal a $3.2 billion loan agreement with the International Monetary Fund (IMF) next month, Egyptian newspaper Al-Ahram reports. Egypt is set to seal the deal with visiting IMF regional director Masood Ahmed, and will receive a third of the loan immediately upon signing. The loan would be used to support the country’s 2012-2013 budget and to supplement its foreign reserves, which dropped to $16 billion at the end of January. Al-Ahram quoted Egyptian Finance Minister Mumtaz El-Saeed as saying that Egypt would also try to secure a $1 billion loan from the World Bank. Egypt rejected a similar IMF loan in June 2011, citing its military rulers’ reluctance to increase the country’s exposure to foreign debt. However, the country's authorities have since changed their position due to increasing pressure on the country's finances.