IMF Says Egypt Must Keep Commitments for $4.8bn Loan

The International Monetary Fund on Tuesday said Egypt can still get its $4.8 billion loan agreed last week despite fresh political turmoil as long as there is "no major change" in its reform commitments.

The IMF also said that the funding, provisionally agreed on November 20, would also hinge on whether other bilateral lenders stick to their loan promises after President Mohamed Morsi issued a decree that granted himself sweeping powers.

"The staff-level agreement on financial support from the IMF is based on the economic and social policies that the government plans to implement under its program," IMF spokeswoman Wafa Amr said in a statement.

"Consideration of the agreement by the IMF Executive Board will require that there is no major change in the economic outlook and implementation plans, including prior passage of a revised budget for 2012/13 that reflects planned tax and spending measures," she said.

Consideration also requires "that assurances from Egypt's bilateral and multilateral partners regarding their expected provision of program financing will be forthcoming," she added.