Egypt’s government to borrow 262B EGP in Q1 of FY2015/16
Finance Minister Hani Kadry - YOUM7 (Archive)

CAIRO: Egypt’s government intends to borrow 262 billion EGP ($33.46 billion) in treasury bills and bonds during the first quarter of this fiscal year 2015/2016, according to Finance Ministry data.

The figure marks an increase of 45 billion EGP, from 217 billion EGP planned a year earlier

The government seeks to borrow from the domestic market to cover the state budget deficit which breached above 10 percent of GDP since FY 2011/2012.

Egypt’s public debt is forecasted to hit 2.55 trillion EGP in the current fiscal year, comprising 90 per cent of the country’s gross domestic product (GDP,) data posted on the ministry’s website showed.

Domestic debt is projected to reach 2.368 billion EGP during this fiscal year, around 83.5 percent of GDP, while foreign debt is expected to hit 182.8 billion EGP, representing 6.5 percent of GDP.

President Abdel Fattah al-Sisi ratified last week the state budget for FY 2015/2016, after being revised to slash the projected deficit to 8.9 percent of GDP.

The government is committed to pay off interests on public debt estimated at 244 billion EGP in the new budget, an increase of 25.1 percent compared with last year.

Public debt services’ expenses comprise around 28 percent of total public spending.

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