World Bulletin/News Desk
U.S. Secretary of State John Kerry plans to stress the importance of Egypt reaching an IMF agreement and achieving political consensus for painful economic reforms, a U.S. official said on Saturday.
Speaking shortly before Kerry arrived in Cairo for a two-day visit, the official said if Egypt could agree on a $4.8 billion loan from the IMF, this would bring in other funds from the United States, European Union and Arab countries.
However, the official said Kerry believed Egypt needed to increase tax revenues and reduce energy subsidies, measures that are likely to prove highly unpopular with Egyptians who are struggling during the country's economic crisis.
"His basic message is it's very important to the new Egypt for there to be a firm economic foundation," the official told reporters as Kerry flew to Cairo.
"In order for there to be agreement on doing the kinds of economic reforms that would be required under an IMF deal there has to be a basic political ... agreement among all of the various players in Egypt," the official said on condition of anonymity.
Egypt said on Thursday it would invite a team from the International Monetary Fund to reopen talks the loan - which was agreed in principle last November but put on hold at Cairo's request during street violence the following month - and the Investment Minister Ashraf al-Araby expressed hope that a deal could be done by the end of April.
Egypt's foreign currency reserves have fallen to not much more than a third of their level before the 2011 overthrow of Hosni Mubarak as the nation's crisis deepens.
Nevertheless, Kerry will stress the need for agreement on reform across the political spectrum on reforms that are likely to be unpopular and winning approval in the Shura Council, Egypt's upper house of parliament.
"What they need to do is ... things like increasing tax revenues, reducing energy subsidies, making clear what the approval process will be to the Shura council for an IMF agreement, that kind of thing," said the official.
Summit is expected to provide member states with opportunity to consult, exchange views on the most important issues concerning them in the framework of the Gas Exporting Countries Forum
Slowdown in Chinese economy, rising oil stocks in US, and oversupply from OPEC are all factors making price of oil lower
'World is more connected than ever before. More and more developing countries are seeking to join global trade networks,' WTO director-general says
European Central Bank is ready to use ‘all instruments available’ to stimulate the eurozone economy, Draghi says
Kazakhstan has overtaken Australia as the lead supplier of uranium for US reactors.
Depreciation of emerging market currencies, combined with low commodities prices, have made investors around the globe nervous
Global growth at further risk from Chinese asset price deflation, and US interest rate increases, Moody's says
Traders fear Chinese government will withdraw support measures markets
European Commission president 'convinced' three-year plan will boost investment in EU
Deal aims to bolster fight against tax fraud through exchange of financial information on Turks holding accounts in US and vice versa
Vessels were delivered to port of Alexandria on June 17
The economic cost of violence according to the 2015 Global Peace Index has reached a staggering $14.3 trillion with Syria the least peaceful country.
The leading opposition lawmaker has said that Turkish President Erdogan is open to all possiblities for a coalition.
Qatar has filed a lawsuit against the leader of the National Front in France for his comments regarding "terror" activities.
Saudi Arabia will put in place an electronic bracelet system for all pilgrims visiting the country to perform their Hajj duties.
After U.S. Federal Reserve Chair Janet Yellen indicated that the central bank was poised to raise interest rates, European stock markets fall.