"Narrative Summit" Releases 2025 Recommendations to Cement Egypt's Position as a Global Tourism Destination    Egypt, S.Arabia step up trade ties through coordination council talks    Egypt reviews progress on $200m World Bank-funded waste management hub    Egypt urges Israel to accept Gaza deal amid intensifying fighting    Egypt, ADIB explore strategic partnership in digital healthcare, investment    SCZONE, Tokyo Metropolitan Government sign MoU on green hydrogen cooperation    Egypt welcomes international efforts for peace in Ukraine    Al-Sisi, Macron reaffirm strategic partnership, coordinate on Gaza crisis    Contact Reports Strong 1H-2025 on Financing, Insurance Gains    Egypt, India's BDR Group in talks to establish biologics, cancer drug facility    AUC graduates first cohort of film industry business certificate    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt prepares unified stance ahead of COP30 in Brazil    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt to inaugurate Grand Egyptian Museum on 1 November    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt to fund budget gap via local market, Arab help
المصري اليوم، أخبار اليوم من مصر
Published in Almasry Alyoum on 04 - 07 - 2011

ABU DHABI--Egypt plans to fund its 134 billion Egyptian pound budget deficit through a combination of local market issuance and with aid from Arab states, Finance Minister Samir Radwan said on Monday.
"Egypt can go at least a year without World Bank or IMF (support) but only with the help of Arab countries," Radwan told reporters in the United Arab Emirates' capital.
"We plan to cover 120 billion pounds from the local market, and 14 billion pounds of the deficit we are looking for from Arab countries," he said without giving further details.
Egypt had sealed a US$3 billion financial package from the International Monetary Fund on June 5 to shore up its finances after protests that ended Hosni Mubarak's 30-year rule scared away tourists and investors, two of its main sources of foreign exchange.
But after securing the package, Radwan said the country would not need to borrow after all from the IMF or the World Bank, which had also offered a large lending package, saying the shortfall could now be covered locally and from foreign aid.
Asked on Monday whether it would be difficult to raise the funds in the local treasury market at attractive rates, Radwan replied: "That is why we stopped at 120 billion."
The cost of insuring Egyptian debt against default stood at 315.7 basis points on Monday, according to Markit data, meaning it costs 315,700 pounds to protect 10 million pounds of debt. That price had hit 441 basis points in late January as the revolt against Mubarak was growing.
The government forecasts that its revised budget will cut the deficit for the fiscal year starting 1 July to 8.6 percent of annual economic output from a previously predicted 11 percent. But it has given few details of how it will achieve this.
Egypt, whose economy contracted in the first six months of 2011, approached the IMF and international donors in early May to help it plug a forecast US$11 billion balance of payments gap in 2011/12 following the political turmoil.
The World Bank had said it would offer US$4.5 billion over the next 24 months, including US$1 billion to help cover next year's budget shortfall. It now says it will review the plans after Egypt said it no longer wanted the IMF money.
Egypt's central bank sold fewer 91-day treasury bills than it offered at an auction on Sunday after yields rose from last week.


Clic here to read the story from its source.