Statement by an IMF spokesperson on the Arab Republic of Egypt

Statement by Ms. Ratna Sahay, Deputy Director of the Middle East and Central Asia Department and head of the IMF mission in Egypt:

"The Egyptian authorities have informed us that they have revised their budget plans for the coming fiscal year 2011/12 and decided to refrain from foreign borrowing in the short term. The revised budget involves a decline in the targeted fiscal deficit from 11 percent to 8.6 percent of GDP and, therefore, reduced the government’s financing requirements for the coming fiscal year. In light of these changes, the authorities see no immediate need for a financial arrangement from the IMF.

The IMF continues to maintain a close policy dialogue with the authorities and remains committed to helping the authorities achieve their objectives of maintaining social cohesion and preserving macroeconomic stability, as well as moving Egypt’s economy on a path that leads to high and more inclusive medium-term growth and employment."