Egypt is discussing financial packages for budgetary and other support with Saudi Arabia and the UAE that could exceed a total of $5 billion based on figures initially proposed, Egyptian Finance Minister Hazem El-Beblawi said Monday. He said he was discussing financing packages offered by Saudi Arabia and the UAE. "We have received $500 million from Saudi Arabia. They are proposing a package. We are still in discussions. The package is much bigger," he said. "And also another package is being discussed with the UAE. There was a delegation from the Emirates here yesterday (Sunday), and we are finalizing. I would not discuss the exact proposal until approved by both parties," he added. Asked about the value of the combined packages, he said: "When we were starting discussions we received ideas from different parties and the total amount was $5-7 billion." He then added it was "closer to $5 billion." The packages would cover a mixture of budgetary support and other financing, but he did not give details. "We will be negotiating very soon a facility from the Arab Monetary Fund," he said, adding that this was "closer to half a billion" US dollars. He said Qatar and Kuwait had also voiced support but said these offers had not progressed till now. Moreover, he said that Cairo was open to "all sorts of cooperation" with the International Monetary Fund, which offered a $3 billion financing package earlier this year that Egypt then turned down in June. The IMF package was negotiated and turned down when another minister was in office. The minister said at the time Egypt had revised its budget so it no longer needed the cash and also said army rulers were concerned about building up debts. Beblawi said "We are open for all sorts of cooperation that will include everything ... we are considering the whole thing according to the needs of the country," he said before talks to be held during IMF and World Bank meetings in Washington this month. "I don't want to give the impression that I am going to negotiate for a loan, but I am going with an open mind," the finance minister said, adding that he would listen to any proposals the institutions made. The government forecasts its budget deficit for the year ending June 2012 will be 8.6 percent of gross domestic product. It had been forecast at 11 percent before it was revised down. Economists say the lower forecast may be optimistic. Egypt's economy grew by a slower-than-expected 1.8 percent in the year to June 2011, after the economy was disrupted by the uprising that drove Hosni Mubarak from office. The government expects growth of 3-3.5 percent in the current financial year, that runs July
