Director General of the International Monetary Fund (IMF) Christine Lagarde said on Friday that the conditions in Egypt do not yet allow the resumption of negotiations on the package the fund intends to submit to Cairo. Violence has racked the country since former President Mohamed Morsy was toppled.
Lagarde added in an interview with Bloomberg that the IMF was ready to support the Egyptian people during the transitional phase but that all elements necessary to provide such support were not yet complete.
Lagarde pointed out that a certain level of stability and support for the government is needed in order to resume talks on the aid. She stressed that the IMF would be ready to help Egypt once stability is achieved.
The Saudi Foreign Minister, Prince Saud al-Faisal, announced that Arab countries are ready to compensate Cairo for any Western reduction in aid or loans.
Egypt requested a loan from the IMF worth US$ 4.8 billion, but the negotiations stumbled several times due to political instability.
