Minister of Finance, Amr El-Garhy - File Photo
CAIRO – 3 October 2017: The current level of interest rates on loans has increased burden on the state budget as they stand at LE 410 billion, compared to an original estimate of LE 380 billion, Minister of Finance Amr el-Garhy said Tuesday.
Speaking at a press conference, Garhy announced that his ministry is working to fully automate the state budget to include one account for it and unify the purchasing system of the state.
Deputy Minister of Finance for Budgeting Mohamed Maeet said that by the end of June 2018, around 90 percent of the government collections will be done electronically.
Last week, the Central Bank of Egypt (CBE) decided to keep key interest rates and overnight lending rates unchanged at 18.75 percent and 19.75 percent respectively.
In early July, the CBE decided to raise interest rates by two percent in a surprise move that aimed to tame inflation, which was expected to rise after slashing fuel and electricity subsides and a one percent increase in the Value Added Tax (VAT).
That was the third time the CBE has raised interest rates since the flotation of the Egyptian pound in November last year.