Bloomberg News

Egypt Says It Doesn’t Need IMF, World Bank Cash ‘At the Moment’

June 25, 2011

June 25 (Bloomberg) -- Egypt doesn’t need to borrow from the International Monetary Fund and World Bank “at the moment” after it cut its budget-deficit goal for the fiscal year starting July 1, Finance Minister Samir Radwan said.

“We don’t need to borrow from the bank and the fund at the moment,” Radwan said in a phone interview today. “We had a budget deficit of 11 percent; we now have a budget deficit of 8.6 percent” of gross domestic product, he said.

A delegation from the IMF announced on June 5 that it agreed to a $3 billion loan for Egypt. The 12-month loan was part of a broader international support package for the country after the uprising that resulted in the ouster of President Hosni Mubarak hurt revenue from tourism and industry.

The IMF cut its 2011 economic growth forecast for Egypt in April to 1 percent, from 5 percent.

--With assistance from Vivian Salama in Dubai. Editors: Paul Armstrong, Alastair Reed

To contact the reporter on this story: Mariam Fam in Cairo at mfam1@bloomberg.net

To contact the editor responsible for this story: Andrew J. Barden at barden@bloomberg.net


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