IMF talks to resume January

CAIRO, Egypt (AP):

Egypt's prime minister yesterday said his country will resume talks in January with the International Monetary Fund (IMF), after Cairo suspended its request for a $4.8-billion loan during this month's political turmoil over the now-adopted constitution.

Hesham Kandil didn't specify when the talks will resume. But he stressed that the loan is important to Egypt's efforts to regain investor confidence as his country grapples with a crippling budget deficit and dwindling foreign reserves.

"We need the vote of confidence from the IMF," he told reporters at the launch of a government initiative that appears aimed at calming worries about imminent austerity measures and the health of the economy.

"We hope to have more consensus on the government programme. We hope there are no core changes to our plan with the fund," he said.