Egypt Daily News - Dr. Mohamed Maait, Minister of Finance, said that the Egyptian economy has gradually begun to regain the confidence of international classification institutions, with a more stimulating path towards more positive and stable prospects, by adopting reformist, advanced, integrated and sustainable economic policies. In a way that enhances the process of recovery, stability, and sustainable growth, and creates more job opportunities, by advancing efforts to empower the private sector, and doubling its contributions to national economic activity.
He added, in a statement yesterday, after Fitch Agency changed its outlook on the future of the Egyptian economy from “stable” to “positive” and fixed the credit rating at “B-”, that reducing the state’s public investment spending and setting a ceiling for it at one trillion pounds during the next fiscal year It helps attract more private investments.
The Minister continued: “We look forward to continuing to work vigorously to improve Egypt’s credit rating for the better during the upcoming reviews before the end of 2024, and the Egyptian economy now has a greater ability to meet future financing needs amid the difficult global and regional challenges resulting from the war in Europe and the war in Gaza. And tensions in the Red Sea region.
He stressed that the agreement with the International Monetary Fund, the supportive packages from financial institutions and international development partners, and the recent and expected foreign direct investment flows during the coming period enhance stability and economic progress, as they contribute to alleviating financing pressures in the short and medium term.
Maait said: “We are continuing on the path to achieving financial discipline, and in the new budget for the next fiscal year 2024/2025, we aim to record a primary surplus of 3.5% and reduce the debt rate to 88.2% of the gross domestic product, in light of the presence of a binding ceiling on public debt. We aim to reduce it to less than 80% of the gross domestic product by June 2027.”
He explained: “We are working to improve debt management and reduce the risks related to refinancing by reducing the budget deficit, by developing state resources while rationalizing spending, maintaining an increasing primary surplus, recording high growth rates, and directing half of the revenues from the (offerings) program to begin reducing the government’s debt and its service burdens.” , directly, and reducing the rates of increasing interest payments by following a policy of diversifying funding sources between internal and external instruments and markets.
In addition to reducing the financing needs that consist of the deficit, prolonging the life of the debt after interest rates improve, and working to review all required guarantees and negotiate their terms and reduce the balance of sovereign guarantees for the output. “GDP starting from the next fiscal year, setting a (ceiling) for the guarantees issued by the Ministry of Finance, and monitoring the volume of sovereign guarantees issued.”
