Friday June 14th, 2024
Download the app
Copied

Egyptian Government Aims to Reduce Debt Deficit by 80% by 2027

For the first time, amendments to the Unified General Finance Law will impose a maximum limit on Egypt’s total debt.

Cairo Scene

Egyptian Government Aims to Reduce Debt Deficit by 80% by 2027

Minister of Finance Dr. Mohamed Maait's financial report to the House of Representatives outlines a targeted strategy to swiftly reduce Egypt's debt-to-GDP ratio to below 80% by June 2027.

For the first time in Egypt's history, amendments to the Unified General Finance Law will impose a maximum limit on the government's total debt, including its budgetary bodies and economic entities, with this limit decreasing annually. Exceptions for exceeding this limit are restricted to national emergencies and necessities, requiring approval from the President, Cabinet, and House of Representatives.

Furthermore, the report proposes setting limits on guarantees issued by the Ministry of Finance and allocating surplus funds and proceeds from offerings towards direct debt reduction and servicing costs, alongside extending debt maturity.

The report acknowledges the impact of restrictive policies aimed at curbing inflation, which have led to increased financing and development costs, as well as limited funding availability from various sources amidst ongoing inflationary pressures.

×

Be the first to know

Download

The SceneNow App
×