“The authorities have indicated that Egypt would like the IMF to support Egypt’s economic program financially to help the country recover and to lay the foundation for strong growth that benefits all,” Lagarde told reporters August 22 after meetings with President Mohamad Mursi, Prime Minister Hesham Kandil, Finance Minister Mumtaz El-Saieed, and other senior Egyptian officials.

In a statement on the IMF’s website Legarde said that Egypt faced considerable challenges, including the need to restart growth and reduce budget and balance of payments deficits. She also emphasized the importance of creating jobs and supporting small and medium-sized enterprises.

Egypt had made a request for a $3.2bn loan earlier this year. The loan agreement was supposed to be signed in the spring, but it was delayed by disagreements between the now-dissolved parliament and the former government, which was formed by the military council before the presidential elections., according to Al Jazeera.

A technical team will be arriving in Cairo in early September to work with the authorities on their programme and discuss possible forms of financial support from the IMF.

Since the ouster of former president Hosni Mubarak, activists have been taking to the streets in ana ttempt to raise  awareness about the likely consequences of IMF loans. 
Egyptians blame the IMF and the World Bank for a privatisation programme executed by the Mubarak regime.

Lagarde’s visit to Egypt is the second to an Arab country going through transition, after her visit to Tunisia earlier this year. With the recent approval of two programs, one for Jordan and the other for Morocco, the IMF has committed to support the region with over $8 billion. The IMF also provided financial support for Yemen earlier this year.