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.
BIST 100 rises 0.01 percent; US dollar/Turkish lira exchange rate drops to 4.0250
Fresh hopes that Donald Trump and North Korea's leader Kim Jong Un will hold a historic summit within months also provided some much-needed optimism.
The fund cautioned that investors and financial markets expect a steady approach to monetary tightening based on the belief inflation will remain relatively tame.
Turkey's assets abroad go up 2.4 percent at end of February 2018, compared to end of 2017: Turkish Central Bank
BIST 100 decreases 0.12 percent; US dollar/Turkish lira exchange rate stands at 4.1020
Hong Kong and China ended down after fluctuating through the morning on data showing the world's number two economy expanded in January-March at the same rate as the previous three months.
For Turkey, Germany is a very important, indispensable partner: Turkish Energy Minister Albayrak says in Berlin
BIST 100 rises 0.69 percent; US dollar/Turkish lira exchange rate stands at 4.0830
The United States, Britain and France carried out attacks at the weekend on alleged chemical weapons facilities, in response to what they say was a toxic gas attack by the Russia-backed Assad regime a week before.
Excluding interest payments, central government budget balance saw surplus of nearly $500M in first quarter of 2018
London's FTSE 100 index fell 0.1 percent to 7,254.83 points, with UK advertising giant WPP diving four percent after chief executive Martin Sorrell resigned over the weekend.
The US, Britain and France carried out attacks at the weekend on alleged chemical weapons facilities, in response to what they say was a toxic gas attack by the Russia-backed Assad regime a week before.
Industrial production surges 9.9 pct year-on-year in February, official data show
BIST 100 rises 0.23 percent; US dollar/Turkish lira exchange rate stands at 4.1020
Unemployment in January goes down 2.2 percentage points from the same month last year, says TurkStat