20110626
xinhua
CAIRO, June 25 (Xinhua) -- Egyptian Finance Minister Samir Radwan said Saturday that his country has turned down loans from the World Bank (WB) and the International Monetary Fund (IMF) after cuts of budget deficit.

"Egypt doesn't need any loans from IMF or WB in the current time," state MENA news agency quoted Radwan as saying in an official statement.

The statement came after Egyptian government cut the budge deficit for the fiscal year of 2011 to 2012, starting from July 1, from 170 billion Egyptian pounds (28.5 billion U.S. dollars) to 134.3 billion pounds, which accounts for 8.6 percent of GDP, down from the previous estimated 10.75 percent.

Egyptian government approved the amended budget for the fiscal year 2011 to 2012 on June 22, which set the total public spending at 490.6 billion pounds, down from 514.5 billion pounds when the budget draft was first announced on June 1.

Egypt announced earlier this month that the IMF is to grant Egypt a loan of 3 billion dollars over the 12 months for next fiscal year with 1.5 percent annual interest rate to promote the Egyptian economy, especially to decrease the country's budget deficit.

Amending the budget was in response to public pressure and in line with consultations between the ministry and the supreme council of the armed forces, MENA reported.

Radwan said in the statement the deficit could be covered via local markets, some grants and aids from friendly countries and international organizations.

Radwan asserted the constant technical cooperation will continue between Egypt and both the IMF and the WB to get the utmost benefits from their experts under good relations.

Egypt's economic conditions have been deteriorating since the mass protests, which caused damage of the tourism sector and other industries, besides retreat of foreign investments.

Radwan stressed in a press conference on Wednesday that his government is keen on keeping the total deficit within safe limits to maintain the public debt to GDP ratio without further increase.

Radwan told reporters he expected the growth rate of the current fiscal year to be 2.6 percent, while the growth rate for the coming fiscal year to vary between 3 percent and 3.5 percent, which won't be enough to create more jobs. (1 U.S. dollar = 5.95 Egyptian pounds)