Self-Sufficient: Egypt says no to World Bank, IMF funds

The 2011-12 deficit in the budget was forecast at 11% of gross domestic product, but was revised to 8.6 per cent

CAIRO: Egypt will not borrow from the World Bank and International Monetary Fund after revising its budget and cutting the forecast deficit, even though a loan had been agreed, Finance Minister Samir Radwan said on Saturday. The 2011-12 deficit in the first draft budget was forecast at 11 per cent of gross domestic product, but was revised to 8.6 per cent because of a national dialogue and the ruling army council’s concerns about debt levels, the minister told Reuters. “So we do not need to go at this stage to the Bank and the Fund,” Radwan said. Egypt this month agreed on a $3 billion, 12-month standby loan facility from the IMF.  The IMF and World Bank had been among a range of foreign countries and bodies to offer funds to Egypt to help cover a big budget shortfall after the economy had plunged into turmoil by the mass protests.

Published in The Express Tribune, June 26^th, 2011.