Egypt records 20% decrease in debt rate within 3 years despite coronavirus



Tue, 25 May 2021 - 02:47 GMT


Tue, 25 May 2021 - 02:47 GMT

Egyptian currency - Reuters

Egyptian currency - Reuters

CAIRO - 25 May 2021: The Egyptian Minister of Finance Mohamed Maait, confirmed Tuesday,  that the reduction of debt is greatly reflected on citizens in improving their daily lives, increasing investments, creating job opportunities and improving the services provided to them at the level of the Republic.


Maait explained that the world is now looking positively at the Egyptian state after the improvement of all economic indicators, in addition to the state of stability and growth occurring within the country, which is moving in the right direction.


He clarified that the debt ratio index is measured on the gross domestic product, pointing out that on June 30, 2017, the debt recorded 108 percent, and on June 30, 2020, it was 88 percent, and if it were not for the coronavirus pandemic, it would have been 82 percent, meaning that we were able to reduce debt by 20 percent within three years.


“Had it not been for the Corona crisis, it would have reduced it to 25% in three years, which is the largest debt reduction achieved by any country in the world during that time period,” he pointed.


The Minister of Finance indicated that state revenues did not cover wages, pensions and subsidies in addition to debt service, and borrowing had to be made to facilitate the requirements of the state, and then borrowing again to service the debt, but when a primary surplus was provided, this means that the state’s revenues covered all its expenses, leaving a surplus to pay off the debt service.

He explained that the debt has a service cost and the cost of the debt has been reduced from the budget, indicating that funds are being provided to provide and pump investments in the Egyptian state to implement projects in all health and educational fields, road networks and village development.


Maait stated that the Egyptian state worked to solve the electricity problem that we were suffering from, pointing out that the investor is investing in the case of providing electricity, infrastructure and a road network.


He added that the stability in the Egyptian state contributed to growth and the existence of fiscal and monetary policies, which helped preserve the currency and foreign reserves in the country, operate factories, pump resources to the state, and bring about a good economic growth rate and heading in the right direction.




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