Egypt approves LE 130B package of measures to mitigate effects of global economic challenges

CAIRO - 21 March 2022: In implementation of presidential directives, a package of financial and social protection measures worth LE 130 billion has been prepared to deal with the repercussions of global economic challenges and mitigate their effects on citizens, according to the Minister of Finance Mohamed Maait.

 

The minister indicated in a statement, Monday, that LE 2.7 billion will be allocated to include 450,000 new families for the beneficiaries of “Takaful and Karama.”

 

He added that it also include allocating LE 190.5 billion to the National Authority for Social Insurance to disburse the annual increase in the value of pensions by 13 percent, with a minimum of LE 120, starting from the beginning of next April, and increasing the tax exemption limit by 25 percent from 24 to LE 30,000.

 

 

The package also included the provision of LE 36 billion to disburse the periodic allowance for civil service persons and the special allowance for non-addresses, and to increase the additional incentive within the wage appropriations in the next year’s budget of LE 400 billion.

 

The minister also added that the customs dollar has been set at a value of LE 16 for basic commodities and production requirements by the end of next month.

 

The state’s public treasury bears the value of the real estate tax due on the industrial sectors for a period of three years, at a value of LE 3.75 billion, according to the minister.

 

The Monetary Policy Committee of the Central Bank of Egypt announced, in an extraordinary meeting, Monday, to raise the Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation by 100 basis points (bps) to 9.25 percent, 10.25 percent, and 9.75 percent, respectively.

 

 

The discount rate was also raised by 100 bps to 9.75 percent.

 

Moreover, the exchange rate of the US dollar against the Egyptian pound in the National Bank of Egypt and Egypt jumped to LE 18.15 for purchase and LE 18.25 for sale.