The International Monetary Fund (IMF) reportedly urged Egypt to adopt a more flexible exchange rate policy as part of talks for USD12bn loan package, Al Borsa quoted, citing unnamed government sources as saying. The request was made during a meeting with the Coordination Council – a body through which Cabinet coordinates fiscal and monetary policy. Discussion included strategies to avail FX for imports in the short term, a Cabinet spokesman mentioned. The IMF discussed the need for setting a clear timetable of reforms and grace period for first-tranche facility repayment, meeting Egypt’s foreign obligations and better utilisation of international debt markets to finance the budget deficit – which the IMF reportedly believes to remain at very manageable levels. The second and the third tranches of the loan will be disbursed conditional on progress with the reform agenda, according to sources. (Al Borsa)