Egypt’s Finance Minister calls on developed countries to help alleviate debt burden for developing states

Minister of Finance Mohamed Mait called Sunday on developed countries to help alleviate the burden of debts for developing countries. 

Mait made the statements at an event held by the Ministry of Planning and Economic Development on alternative financing to sustainable development.

The minister presented some features of Egypt’s policies to face global economic crisis. He mainly underlined expanding social safety networks to encompass the most vulnerable segments to the crisis. 

As for FY2022/23, Minister Mait noted that the revenues are targeted at LE1.5 trillion, while expenditure is estimated at LE2.071 trillion. The minister clarified that LE400 billion have been allocated to salaries, and that over LE350 billion would be used in funding public investments, such as infrastructure, utilities and facilities. 

The minister said that Egypt is working towards reducing the deficit-to-GDP ratio to 6% compared to 12% in 2016. 

With regard to the strategy set to manage public debt, Mait pointed out that green sovereign bonds have been issued by Egypt in the Middle East and Africa. Further, Egypt had acquired in September 2021 a green loan worth $1.5 billion.

The minister added that in the second quarter of 2022, the country will issue Sukuk. 

Elaborating on other success stories, Mait pointed out the issuance of Samurai Bonds worth 60 billion yen ($0.5 billion) in March 2022, which reflects confidence in Egypt’s economic strength. The minister further added that Panda Bonds will be issued in China soon. 

Speaking of COP27 taking place in Egypt next November, Mait stated that it would be preceded by a meeting for African finance and economy ministers in September.