Debt
The IDSC added that the next year's budget targets LE 2 trillion in expenditures.
The minister presented some features of Egypt’s policies to face global economic crisis.
The government is working to extend the life of the debt to reach 3.6 years by the end of June 2023 instead of 3.5 years expected by the end of next June and about 1.3 years in June 2013.
The minister noted that the selection was restricted to those who got loans to pay for essentials.
“Over the past eight years, Egypt’s budget balance has significantly improved with the deficit narrowing from nearly 13 percent of GDP at the end of FY2012/13 to 7.4 percent by the start of FY21/22m” he noted.
Egypt targets to reduce the debt rate to GDP in June 2022 to less than 90 percent, and less than 85 percent during the next three years, down from 108 percent in June 2017.
Madbouly added, in a TV interview, that the debt ratio was 108 percent four years ago, then it decreased to 87 percent before the coronavirus crisis, to reach 91 percent currently.
“The value of the debt was LE 44 billion in 2018, including electricity, petroleum, solidarity and other parties. A settlement has been made with all parties, and only taxes remain,” Tawfik added.
Egypt’s President Abdel Fattah El-Sisi urged maintaining performance regarding the general budget indicators, leading to achieve an initial surplus of 1.5 percent.
This comes as Egypt enjoys the highest differential between nominal interest rates and inflation among more than 50 economies followed by Bloomberg, making Egyptian bonds and treasury bills among the preferred instruments among international investors hungry for yield.
Maait said in a statement that the debt-to-GDP ratio fell to 90.6 percent during the last fiscal year 2020-2021, compared to 108 percent during the 2016-2017 fiscal year.
The Media Center of the Cabinet released Saturday the figures.
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.
The recommendations of the forum’s second edition were displayed Friday.
In Aswan Forum for Sustainable Peace and Development, Mohieldin warned that 50-60 million Africans are at risk of getting pushed into poverty.
Maait said in a statement Thursday that debt life expectancy is targeted to reach 3.8 years by the end of June 2021.
The official highlighted that debt swap is an effective measure to reduce the debt burden.
Egypt managed to repay $35 billion in debt despite the economic repercussion of the coronavirus crisis, and provided 5 million jobs over the past five years, said governor of the Central Bank of Egypt (CBE).
The duration can be prolonged, if needed.
Kouchouk said Egypt is also working on reducing its debts and budget deficit.
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