Egypt Initiatives 7.1% Improve in Debt Financing Wants in 2021/22
The federal government projected elevating 66 billion kilos of this by promoting worldwide bonds, down from 72 billion kilos this yr, the draft price range stated.
The cupboard authorised the draft, which targets a price range deficit of 6.6%, on March 24, however the doc nonetheless must be authorised in parliament.
“If they’re able to obtain that it could be very constructive,” stated Allen Sandeep of Naeem Brokerage. “The deficit goal of 6.6% is a pointy discount from the goal of seven.8% this yr and the precise deficit of seven.9% in 2019/20.”
The federal government projected its gas subsidy invoice would drop by 35% to 18.4 billion kilos, whereas tax revenues have been projected to extend by 1.9% to 983 billion kilos.
Egypt, usually the world’s largest wheat purchaser, additionally projected it could present 8.6 million tonnes of the grain to the general public, of which it deliberate to import 5.1 million tonnes.
The draft price range initiatives a mean rate of interest of 13.2% on home treasury payments and bonds, down from 14% this yr.
(Reporting by Nashat Hamdy; Writing by Patrick Werr, Aidan Lewis and Nadine Awadalla; Modifying by Hugh Lawson)