The move comes after the planned deficit in the 2011-12 budget was revised down from 11 percent to 8.6 percent of GDP, Mr Radwan said.

Many of those who took part in Egypt's uprising denounced the role of the IMF.

But Mr Radwan turned to the IMF in May, saying that the situation was "very difficult", and extra funds were needed to finance the demands of the people on the heels of the revolution.

He agreed a US$3 billion 12-month stand-by loan facility - an agreement which came on top of loan deals agreed with the World Bank and the African Development Bank.

Mr Radwan now says that following discussions with civic and business groups and the military council, the budget forecast has been revised down from a deficit of 170 billion Egyptian pounds (US$28.5 billion) to 134 billion pounds, and loans are thus not needed at this stage.