Egypt says it does not need IMF, World Bank assistance

Egypt on Saturday said it had no immediate need for assistance from the International Monetary Fund (IMF) and the World Bank, dpa reported.

"The Ministry of Finance confirms it does not need any loans from the World Bank or the IMF at the moment," the ministry said in a statement.

The statement came after the government revised the budget for the fiscal year beginning on July 1, with the expected deficit reduced from 170 billion Egyptian pounds (28.5 billion dollars) to 134.3 billion pounds.

The ministry said the deficit would be covered through "the local market and some aid from friendly countries and international organizations."

Earlier this month, the IMF agreed on a 3-billion-dollar package over 12 months to support economic reforms in Egypt during its transition to democracy.

US President Barack Obama pledged 1 billion dollars in debt relief for Egypt. Qatar had provided 500 million dollars to support Egypt last week, and Saudi Arabia offered a similar amount.

Egypt's economy has been largely affected by the political turmoil and the uprising that resulted in the ouster of its president, Hosny Mubarak, in February.

Many Egyptians do not favour the idea of turning to international lenders and locking the changing country in debt.

Parliamentary elections are expected to be held in September or October, with the presidential elections to follow later in the year.