Leading bank HSBC said that a $4.8 billion International Monetary Fund loan is 'the only thing' preventing Egypt from a currency crisis brought on by post-revolution political upheaval.
A senior IMF official met Egypt's government on Monday to discuss a vital $4.8 billion loan as the Islamist-led state battles to contain a currency crisis set off by political turmoil that is depleting its foreign reserves.
The IMF's Middle East and Central Asia director, Masood Ahmed, met Prime Minister Hisham Kandil at the start of a visit coinciding with a sharp decline in the value of the Egyptian pound, which has hit a series of record lows against the dollar.
"At this stage, the putative $4.8 billion IMF deal is the only thing standing between Egypt and a disorderly economic deterioration," HSBC said in a note issued on Monday. "The fact that Mr. Ahmed is making the trip to Cairo is positive."
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