Egypt units an annual ceiling on public debt, after doubling in recent times

International Courant

The Egyptian Cupboard accepted the activation of this system throughout its weekly assembly on Thursday Uniform regulation on public funds to set an annual restrict for the federal government’s debt, together with the federal government’s 59 financial entities.

Based on a authorities assertion, the regulation will come into impact by the creation of particular items within the Ministry of Finance, and particular accounting items in all financial entities.

The regulation, first issued in February 2022 and considerably amended in March, two years after its issuance, goals to set a ceiling on the money owed of price range companies and financial entities in Egypt, which can’t be exceeded except with approval of the president, the cupboard and the Home of Representatives.

The state is working to decrease debt charges and put them on a sustainable downward path, and cut back the debt-to-GDP ratio to lower than 80 p.c over the subsequent three years.

Beforehand, the state price range didn’t embody 59 financial entities, however the authorities says it goals to “enhance the governance and self-discipline of the state’s monetary system.”

The regulation prohibits administrative our bodies from being certain by prices and from coming into into contracts, monetary agreements, protocols, initiatives or different issues that entail extra monetary obligations or burdens.

It additionally prohibits representatives of the Ministry of Finance from approving the disbursement of quantities earlier than making certain that there’s a monetary obligation or that the undertaking is included within the financial improvement plan.

The regulation additionally requires that the recommendation of the Ministry of Finance be requested on draft legal guidelines or selections that place a further monetary burden on the state treasury.

Based on information from the Central Financial institution of Egypt, Egypt’s exterior debt fell to $152.9 billion on the finish of June 2024, with long-term exterior debt reaching $126.8 billion whereas short-term debt stood at $26.24 billion.

Egypt’s home debt fell to LE8.72 trillion on the finish of June, in contrast with LE8.965 trillion in the course of the first quarter of this yr, a decline of two.7 p.c.

Edited translation of Al-Masry Al-Youm

Egypt units an annual ceiling on public debt, after doubling in recent times

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