Egypt’s parliament approves FY 2019/20 budget targeting 7.2% deficit

An attendant fills the tank of a car at a petrol station in Cairo, Egypt. (Reuters)
Updated 24 June 2019
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Egypt’s parliament approves FY 2019/20 budget targeting 7.2% deficit

  • The new budget sees a debt-to-GDP ratio of 89% by the end of June 2020, from a projected 86% in the 2018/19 fiscal year
  • The budget allocates 52.963 billion Egyptian pounds ($3.18 billion) for fuel subsidies, down from 89.75 billion pounds this fiscal year

CAIRO: Egypt’s parliament approved the government’s 2019/2020 budget on Monday, targeting a 7.2% deficit for the year and 6% GDP growth.
That compared with expactations of a budget deficit of 8.4% of gross domestic product and 5.6% GDP growth in the 2018/19 fiscal year that ends on June 30.
The new budget sees a debt-to-GDP ratio of 89% by the end of June 2020, from a projected 86% in the 2018/19 fiscal year.
The budget allocates 52.963 billion Egyptian pounds ($3.18 billion) for fuel subsidies, down from 89.75 billion pounds this fiscal year.
In a letter to the IMF in January, Egypt said it would remove subsidies on most energy products by June 15 as part of a three-year, $12 billion loan program with the lender.
The subsidies have yet to be lifted and the government has not said when it will raise fuel prices.


Egypt expects several share offerings by end of year

Updated 15 September 2019
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Egypt expects several share offerings by end of year

  • One small company worth about 50 million Egyptian pounds was also expected to offer shares on the Nile Stock Exchange

CAIRO: Egypt expects two state companies and one private pharmaceuticals firm worth more than $61.3 million, or one billion Egyptian pounds, to make share offerings by the end of the year, an official at the Financial Regulatory Authority said on Sunday.
One small company worth about 50 million Egyptian pounds was also expected to offer shares on the Nile Stock Exchange, which specializes in small and medium sized enterprises, said Sayed Abdel Fadeel, head of the authority’s corporate finance department. He did not name the companies.
Egypt promised to sell minority stakes in several state companies in late 2018 but postponed the offerings following emerging market turbulence.