Economy World

WB / IMF: Egypt refuses the loan

Egypt says will not need help from the World Bank (WB) and International Monetary Fund (IMF), although an agreement has been made on granting a loan to help the country restore its economy, said the Egyptian Minister of Finance Samir Radwan on Saturday.

“So we do not need to go at this stage to the Bank and the Fund,” Radwan said, adding Egypt, which had borrowed from the IMF under ousted president Hosni Mubarak, still had the “best relations” with the two U.S.-based institutions.

Egypt’s cabinet had approved on June 1 a budget for 2011/12 that increased spending by a quarter to create jobs, help the poor and decided to grant a loan of three billion dollars in Cairo.

According to Radwan, the new budget was reviewed, and its deficit will be filled by national efforts and $ 500 million released by Qatar.

“It’s a gift,” said the minister, when asked about the loan terms Qatari.

The Egyptian economy, which depends largely on tourism, was hit hard during and after the popular uprising that overthrew President Hosni Mubarak on February 11. The country’s tourism sector has lost more than two billion dollars in lost profits. Foreign investment has virtually ceased. Plants and factories are not running at full capacity, from 20 to 50% of capacity is incurred.


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