Finance Ministry’s strategy on public debt to be referred to president in March- Maait

Finance Minister Mohamed Maait on Sunday 3/2/2019 said that his ministry has developed an overall strategy, with the aim of reducing the public debt in the medium run.

The strategy, drawn up in collaboration with the ministerial economic group and the Central Bank of Egypt (CBE), is being revised before referring it to the President in March, the minister added in a statement.

The Finance Ministry succeeded in cutting the ratio of Egypt’s domestic and foreign debt to reach 97 percent of the Gross Domestic Product (GDP) in June 2018, down from 108 percent in June 2017 and 103 percent in June 2016, Maait noted.

He attributed the success of the debt reduction plan to achieving an initial surplus of EGP 4 billion in the Fiscal Year 2017/18, in addition to increasing the economic growth rate by 5.2 percent.

Maait stressed that his ministry targets slashing the debt/GDP ratio to 93 percent by June 2019, to 88 percent by June 2020 and to 80 percent in June 2022.

The Finance Ministry seeks to attain an annual primary surplus of 2 percent of the GDP and deliver annual economic growth rates surpassing six percent in the medium term, he said.

He revealed that the country’s foreign debt ratio of the GDP went down to record 36.8 percent in June 2018, compared to 41.1 percent in June 2017.

The Finance Ministry aims to bring down the country’s foreign debt ratio to hit 34 percent of the GDP in June 2019, Maait added.

Source: State Information Service Egypt