Wednesday 13 July 2011

Egypt seen struggling to finance spending this year | Reuters

In a display of financial independence, Egypt's military rulers last month turned down an offer of $3 billion from the IMF but budget pressures may force the country to take the money after elections later this year.

To avoid tapping International Monetary Fund cash, the government has revised the budget that began on July 1 by cutting forecast spending by 24 billion Egyptian pounds, vowing to fund its deficit from domestic resources and foreign aid.

Economists and diplomats say the numbers do not add up, and that Egypt may not have enough money to cover projected spending over the financial year, which ends on June 30, 2012.


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