CAIRO: Egypt is negotiating to take a loan from the European Union (EU) for its general budget deficit, Egyptian Minister of International Cooperation Sahar Nassr told Youm7 Wednesday.
It is expected that Egypt will obtain the loan by the end of this year, she said, but declined to state its expected value.
Egyptian government aims to shrink the budget deficit by 8.9 percent in the fiscal year of 2015/2016, comparing with 11.5 percent in 2015/2014 FY.
Egypt has negotiated with both the World Bank (WB) and the African Development Bank (ADB) to get $ 4.5 billion in loans over three years.
Nassr continued that the ministry will held meetings with the both organizations in December to discuss the final measures for receiving the first installment of the loans as the government will borrow $1 billion from the WB and $0.5 billion from the ADB.
Negotiations on loans came amid economic crisis Egypt has faced since the crash of Russian passenger plane in Central Sinai as Moscow imposed ban on its flights to Egypt; Tourism sector was gravely affected as Russian tourism is representing 30 percent of total of inbound tourism.
Additional reporting by Yasmine Samra