Egypt: $3.2bn may not be enough | beyondbrics | News and views on emerging markets from the Financial Times – FT.com

Egypt’s long-awaited talks with the International Monetary Fund started on Monday on a possible $3.2bn loan.

But for investors, that might not be enough, says Raza Agha of RBS, who suggests Egypt might need much more “to raise investor confidence”.

Agha did not say in his report how much Cairo might require. But he said in a subsequent email to beyondbrics that it could require $10bn-$12bn to put the finances back in the condition they were in December 2010 – before the political crisis. That, in turn, would involve tough decision in both Cairo and Washington since it is far more than Egypt would normally be allowed to borrow under the IMF quota system.

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