CAIRO (BNO NEWS) -- Egypt's Finance Minister Samir Radwan announced Saturday that the country will not need to borrow from the International Monetary Fund (IMF) or the World Bank, Ahram online reported.

The Ministry of Finance issued a statement after the government revised the budget for the fiscal year 2011 to 2012 and cut the deficit from 170 billion Egyptian pounds (28.5 billion U.S. dollars) to 134.3 billion pounds (22.52 billion U.S. dollars), which accounts for 8.6 percent of GDP, down from the previous estimated 10.75 percent.

Radwin said the reductions came as a result of consultation with the Supreme Council of the Armed Forces, Egypt's de facto ruler since 11 February, and a social dialogue that the ministry called for during the preparation of the budget. He added that the deficit will be covered through local borrowing as well as aid packages.

Earlier this month, the IMF agreed to a $3 billion 12-month standby finance arrangement for Egypt. Up to last Tuesday, official circles were confirming that the loan acquiring process was proceeding successfully.

Egypt's economy has been largely affected since the popular uprising that ousted President Hosni Mubarak earlier this year. Mubarak ruled Egypt in a 30-year-long regime which began in 1981. He stepped down after weeks of anti-government protests by crowds calling for greater democracy and respect of human rights.

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