Egypt allocates LE130B reserves in 2022/2023 to absorb rise in prices: PM

CAIRO - 24 March 2022: The Egyptian government has set up a large reserve of LE 130 billion to absorb a large part of the price hike, so that citizens do not feel any burdens, according to the Prime Minister Mostafa Madbouli.

 

This came during a press conference, which was held today, Thursday, after the opening of the "Welcome Ramadan" exhibition, in the presence of the Minister of Supply and Internal Trade Ali Moselhi, and the Minister of Trade and Industry Nevin Gamea.

 

Madbouli added that President Sisi made it clear that the state was able, with good and proper planning, to supply sufficient reserves of goods, which enabled the Egyptian state to absorb and deal with this unprecedented crisis.

 

“We [the government] have a sufficient balance of goods to secure for the coming period,” he noted.

 

He added that the government sets long-term planning, as the whole world does not know when this crisis will end. It is necessary to plan for the most pessimistic scenario, which is the continuation and prolongation of this crisis so that the state can withstand it for a long time.

 

Egyptian Finance Minister Mohamed Maait affirmed that, 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.

 

The minister pointed out that LE 2.7 billion will be arranged to include 450,000 new families for the “Takaful and Karama” beneficiaries, and LE 190.5 billion will be allocated 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 first of next April, and an increase the tax exemption limit is 25 percent, from 24 to LE 30,000.

 

The Monetary Policy Committee of the Central Bank of Egypt announced, in an extraordinary meeting on Monday, to raise the interest rate by 100 basis points.

 

The Central Bank stated in a statement that it was decided to raise the interest rate on deposits and lending overnight and the main operation rate of the central bank at 9.25, 10.25 and 9.75 percent, respectively, and the credit and discount rate was also raised by 100 basis points to reach 9.75 percent.