FT.com - Gulf looks for clarity from Cairo

Egypt is looking to oil- and gas-rich Gulf countries for help in dealing with its post-revolution fiscal deficit, but analysts and investors say loans and investments may not be forthcoming as quickly as Cairo is hoping.

The country is already in talks with the International Monetary Fund over a $4bn loan, but with a fiscal deficit projected to reach 10 per cent of gross domestic product and foreign reserves and investment falling, its financial situation is deteriorating sharply.

Egypt’s international re­serves fell for a fourth month in April to $28bn, the lowest since April 2007. In December, before the start of a revolt that toppled Hosni Mubarak as president, reserves were $36bn.