Egypt will ask billion for budget support

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Minister of Planning and International Cooperation Faiza Abu Naga
(Reuters)

Said Minister of Planning and International Cooperation of Egypt, Abul-Naga, said Thursday that Egypt would seek a loan of $ 500 million World Bank loan of another $ 500million from the African Development Bank, to help bridge the budget deficit, whichwidened because of a year of political turmoil and economic development.

She told reporters that Egypt persuaded the IMF to reduce interest on a loan proposalworth $ 3.2 billion.

She added that the Fund has agreed to cut interest rates from 1.5% to 1.1%, and said thatthis makes them more consistent with international interest rates.

The minister said that Egypt will request a visit from the World Bank Mission to Egypt soon, without giving details or an appointment.