Egypt will probably restart loan talks with the International Monetary Fund as Gulf Arab allies say they need partners to help revive the struggling economy, according to the country’s biggest investment bank.
Egypt’s economy may need a stimulus package to help create jobs, Finance Minister Samir Radwan said today, after President Hosni Mubarak bowed to pressure from hundreds of thousands of protesters and stepped down.
Egypt turned down International Monetary Fund loans that would have helped the economy because the lender was seen as tainted by concessions demanded of past borrowers, former Finance Minister Samir Radwan said.
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.
Egypt needs help financing its budget deficit and has discussed obtaining as much as $6.2 billion in soft loans from the World Bank and the International Monetary Fund , Finance Minister Samir Radwan said.
Egypt’s government expects to conclude talks on a $3 billion loan from the International Monetary Fund by June 5 as the North African country seeks to fund its widening budget deficit after a popular revolt.
Finance Minister Samir Radwan faces difficulties in keeping his job in Egypt’s new Cabinet because of his ties to the dissolved National Democratic Party, the state-run Al Ahram newspaper reported, citing an unidentified Cabinet official.
Egypt, struggling to raise funds at local government debt auctions, is turning to international markets for the first time since a popular revolt in February ended the three-decade rule of President Hosni Mubarak .