Egypt rules out IMF emergency finance

In an apparent attempt to exert pressure on the International Monetary Fund, Egypt has ruled out seeking emergency finance from the fund and said it still wants to secure a $4.8bn loan agreement, The Financial Times has reported. There will not be a fast or emergency loan, said Alaa al-Hadidi, the cabinet spokesman, adding that any loans from the IMF would come within the context of the country s economic reform program. Cairo s attempts to secure the badly needed loan have run into trouble amid IMF concerns that the government s economic reform program is not robust enough to put Egypt s crisis-ridden economy on track. The IMF said on Monday that Egypt had the option of using its Rapid Financing Instrument (RFI), which would make limited funds available while the country negotiated the longer-term loan. The rejection of the emergency finance is an attempt to bully the fund to giving Egypt the loan said a western diplomat. Some analysts believe that Egypt is too big to fail and that its strategic importance in its region might compel Washington and European capitals to pressure the IMF into giving it the much-needed loan.