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IMF programme "closer than before", but don’t expect quick deal, says City

A deal with the IMF "now looks closer than it has done for some time" but it would be "complacent" to think that there are no further obstacles ahead and that a deal can be secured quickly, London-based emerging markets analysts said on Tuesday.

In a note released to clients, Capital Economics said that "there are numerous issues to iron out" during negotiations, and amendments to the central bank law "will feature high on the agenda".

Moreover, even if a deal is agreed, "there are likely to be doubts about whether the government will stick to the programme and secure future disbursements ... After all, the government has form in prematurely ending IMF arrangements, after talks broke down in July 2010".