World Courant
Finance Minister Ahmed Kouchouk confirmed on Friday, 20/9/2024, that Egypt’s financial state of affairs is “reassuring”, as evidenced by optimistic price range efficiency indicators throughout the previous monetary 12 months.
“We purpose to successfully contribute to the creation of a ‘business-friendly’ atmosphere primarily based on a enough diploma of belief, readability and tax certainty, important for drawing up funding plans for brand spanking new tasks inside a long-term framework of belief and optimistic partnership between the Egyptian Tax Authority (ETA) and the native and international enterprise group,” the minister mentioned throughout a collection of conferences with greater than 100 representatives of main monetary establishments and funding and growth banks in London.
“We achieved a major surplus of 6.1 p.c, together with revenues from Ras Al-Hikma, and decreased the price range deficit to three.6 p.c of GDP. Home price range debt decreased by 4.7 p.c and exterior debt decreased by greater than 4 p.c, with a median maturity of 12.7 years,” Kouchouk mentioned.
He defined that the purpose is to keep up annual major surpluses to deliver the debt-GDP ratio under 85 p.c by the tip of the following fiscal 12 months.
The minister added that the Egyptian financial system will turn out to be extra secure with the expansion of the non-public sector and the growth of its position in funding and growth actions, given the tangible efforts of the federal government to create more room for personal funding. This consists of limiting public funding and persevering with the federal government’s privatization program beneath the State Possession Coverage Doc.
He additionally careworn the promotion of aggressive neutrality by eliminating preferential tax therapy for state-owned enterprises and entities, enhancing infrastructure and offering engaging incentives for native manufacturing and exports. As well as, he pointed to aggressive alternatives in globally and regionally prioritized sectors, simplification of procedures and entry to the “golden license”.
The minister careworn the continued efforts to develop the federal government bond market to draw new buyers and cut back financing prices by diversifying sources, devices, markets, currencies and investor segments.
Egypt is working with the Worldwide Financial Fund (IMF) on a complete program geared toward enhancing the efficiency of the Egyptian financial system, he added.
He careworn the significance of managing macroeconomic dangers with a extra cautious outlook, whereas benefiting from world experience in addressing worldwide and regional challenges. He expressed his expectation of a better position for multilateral banks in supporting the expansion and growth of rising economies.
The Finance Minister participated in a number of roundtable discussions with institutional buyers within the world authorities bond markets, organised by HSBC, Morgan Stanley and Jeffries Financial institution.
He additionally spoke with representatives of the European Financial institution for Reconstruction and Growth (EBRD) about methods to enhance mutual cooperation, empower the non-public sector and the essential position it should play within the Egyptian financial system within the coming interval.
Finance minister says Egypt’s financial state of affairs is ‘reassuring’
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