The IMF delegation in Egypt issued a statement praising Egypt’s 2011/2012 state budget.

The delegation, which initiated a visit to Egypt earlier this week, stated that the general objectives the budget encompasses are very similar to those that the IMF adopts; namely social justice, support to low-income families, job creation and economic stability.

The statement also indicated that the delegation is currently studying possible IMF support to Egypt’s economic plan. It stated that negotiations with the government on the subject are currently underway.

On Monday, Finance Minister Samir Radwan said Egypt had agreed in principle on a $3 billion, 12-month loan agreement with the International Monetary Fund (IMF) and that he hoped it would be signed by Sunday.

He said the loan would help Egypt fill a budget deficit for the financial year ending in June 2012 that he estimated would be 11.3 per cent of gross domestic product.