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FINANCIAL NEWS
Egypt will not borrow from IMF, WB
26 Jun 2011
(MENAFN) Egyptian Finance Minister, Samir Radwan, said that since the country revised its budget and trimmed its projected deficit to 8.6 percent of gross domestic product (GDP), the government wouldn’t borrow from the World Bank and the International Monetary Fund (IMF), reported Gulf News.
Radwan added that in the first draft, the country’s 2011-2012 budget deficit was projected to reach 11 percent of GDP, for this reason Egypt wanted to borrow from the two US based institutions.
He also said that the country agreed on a USD3 billion, twelve month standby loan facility from the IMF this month, which came with more flexible terms than usually associated with such lending.
It is worth noting that the IMF and World Bank were among several foreign countries and institutions to offer funds to Egypt to help cover a big budget deficit, including Gulf Arab countries.
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