CAIRO - 27 August 2024: The IMF disclosed that Egyptian government entities will diminish their debts to the Central Bank of Egypt by LE 100 billion every fiscal year.
As per the IMF's review of Egypt's economy, these entities have already repaid LE 150 billion to the CBE by July's conclusion.
The report highlighted that outstanding dues to international oil companies stand at $5 billion.
To tackle this, the Petroleum Authority has devised a strategy to decrease these dues to a range of $3.5 to $3.8 billion by the end of FY2023/2024.
In terms of debt servicing, payments have surged to around 9 percent of the GDP during the first ten months of FY2023/2024. This accounted for roughly 51 percent of Egypt's total spending and about 84 percent of its overall revenues.
The IMF emphasized the Ras El-Hekma deal's significance in curbing financing needs and debt levels.
It is anticipated that this deal will also uplift Egypt's foreign reserves to $47.2 billion by the fiscal year's end.
Reports suggest that the 4th review of the IMF's $8 billion program is slated for October, as per sources familiar with the matter speaking to regional media outlets.
Al Arabiya Business sources mentioned that the IMF's evaluation mission will occur in October rather than September.
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