Government to borrow 65.2B EGP in June
Finance Minister Hani Kadry - YOUM7 (Archive)

CAIRO: The Ministry of Finance (MOF) is set to borrow 65.2 billion EGP ($839.1 million) in treasury bills during June, amid ongoing efforts to fill a soaring budget deficit, according to the MOF’s website.

Egypt has undergone dramatic economic difficulties since former President Hosni Mubarak stepped down in the wake of the January 25 Revolution in 2011.

The government resorted to borrowing from banks operating in Egypt to cover the budget deficit, which is expected to range between 11 to 12 percent of GDP at 200 billion EGP, at the end of the current fiscal year compared to 10.5 percent of GDP in the 2012-2013 fiscal year.

Egypt’s budget deficit recorded 163.3 billion EGP ($22 billion), representing 8 percent of the country’s GDP during the 10 months of the current fiscal year, down from 10.5 percent of GDP valued at 183 billion EGP in the same period in 2013, MOF said in an April report.

Meanwhile, economic experts said Cairo is expected to receive generous aid from the Gulf states following Abdel Fatah al-Sisi’s landslide victory in the presidential election. They also predicted that Sisi’s inauguration will pave the way for pending aid and grants, especially after talks resume with the International Monetary Fund (IMF).

Saudi King Abdullah bin Abdul Aziz called for a donor conference to help boost the Egyptian economy in a congratulatory message to Sisi, published by Saudi state-owned news agency SPA.

Kuwait and the United Arab Emirates pledged the interim government around $12 billion after the removal of former Islamist president Mohamed Morsi in the wake of June 30.


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