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.