Two Iraqi protesters killed, 25 wounded in clashes with police: Sources    Angola may ask Portugal to seize dos Santos' assets, says prosecutor    Reuters analysis: Trump's peace plan may polarise the Middle East it seeks to calm    Sudan signs initial political and security deal with rebel group    Kaspersky detects ‘data-leak compensation' scheme affecting Egypt, other countries    How many apps were downloaded in 2019?    Despite FDA's anti-vaping campaign, popularity of e-cigarette grows    Interdisciplinary study reveals new insights into evolution of sign language    Books not to miss this book fair - The dreams and agonies of an Egyptian filmmaker    Manchester United fined for failing to control players    As Lebanese struggle to make ends meet, living costs set to soar higher    Egypt up 69 places in global ranking for average ADSL internet speed in 2019    Technical, legal committee meeting on GERD concludes in Khartoum    Financial solvency biggest challenge in Egypt's smart transport market    Live score: Egypt's Zamalek v DR Congo's TP Mazembe (African Champions League)    Title race not over yet, insists Liverpool's Klopp    WHO says 'bit too early' to declare coronavirus a global emergency    Egypt's Sisi marks National Police Day with visit to Police Academy    Audio recording: The voice of a 3,000-year-old Egyptian mummy    Al-Sisi reviews GERD negotiation updates ahead of Washington meeting    Egypt's achievements will be starting point for building modern state: El-Sisi    Shoukry says only way out of Libyan crisis is by forming independent government    Egypt starts screening travellers from China for new coronavirus    China shuts city of millions to stop spread of deadly virus    Militants set off car bombs, storm army positions in Syria's Idlib: State news agency    Virus fears drag down European stocks ahead of ECB policy decision    Apple's Safari web browser users are tracked despite prevention feature    Egypt, UK sign billions-worth deals at investment summit    Egypt banking system outlook stable on robust growth, high liquidity: Moody's    Egypt is boosting economic growth rates, women's role: El-Mashat    Sesame Street launches Arabic TV programme for Middle East children dealing with displacement    US Congress delegation visits North Sinai: Armed Forces    Egypt in a group with Gabon, Libya, Angola in 2022 World Cup qualifiers    Senate approves Trump impeachment trial plan, rejects Democrats on documents, witnesses    Palm Springs Film Festival announces 31st edition's winners    Egypt to play Angola for group leadership in African Men's Handball Championship quarter-finals    Al-Sisi orders additional social protection programmes for low-income: MP    Italy former honorary consul sentenced to 15 years jailtime for smuggling artefacts    Palm Hills signs EGP 505m credit facility with AUB to refinance existing debt    Maspero triangle's towers will be up and standing in 30 months: NUCA    TMG to sponsor 5 Egyptian athletes qualified to Tokyo Olympics 2020    Harry, Meghan drop their royal titles repay £2.4 mln    ‘Djamila Bouhired' movie star Magda al-Sabahi dies at 89    Egypt is best tourism destination for 2020 according to BBC    NBE studies establishment of rowing club in Cairo    Egypt's Zamalek, Smouha presidents hit with disciplinary sanctions by EFA    Egypt's President Sisi pardons some prisoners on 25 Jan. Revolution anniversary    Egypt's Sami Anan released after near two-year detention    

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

Egypt signs agreement with Euroclear to facilitate purchase of government debt instruments: Moeit
State increased government investments in national projects by 40% in FY 2019/20
Published in Daily News Egypt on 13 - 04 - 2019

Washington, DC- Egyptian delegation to IMF spring meetings has signed an agreement with Euroclear, a Belgium-based financial services company, to facilitate purchase of government debt instruments that could reduce expenses for Egypt while attracting more investments, Minister of Finance Mohamed Moeit announced.
“This agreement is very important because Egypt wants to be the Egyptian domestic debt instruments part of the bank's system that works in providing infrastructure services to financial markets through facilitating local securities' transactions and maintaining countries' investments, in addition to helping manage risks and issues,” Moeit told Daily News Egypt during the spring meetings of the IMF and the World Bank.
Euroclear holds €28.6tn in assets for clients. The total value of securities transactions provided by Euroclear to its clients is estimated to be more than €733tn annually.
Moeit was part of the Egyptian delegation in which the minister of investment also took part in. The delegation met with Christine Lagarde, the IMF managing director, and took part in the G20 meetings, the WB, international investors, international rating institutions, and ministries of some countries.
Furthermore, Moeit pointed out that all institutions and countries praise Egypt and see it as a main player in the world. Some Arab countries now consult with Egypt and ask for its aid in implementing their own reforms.
He predicted that Egypt will receive the last tranche from the fund's loan of $2bn in July, after the final review process is finalised in late May or early June.
In addition, Moeit revealed that the Egyptian government has not requested additional funding and that there is no intention to request more funding, explaining that cooperation with the IMF continues through technical missions and consultations, expecting by 2030 to see Egypt's economy one of the largest 10 economies in the world.
He pointed out that Egyptians have already overcome the catastrophic stage. “We are still in the recovery process and we are working hard. The most important results of these austerity measures are the stability of the local currency, the low interest rate, the state's ability to fund salaries, pensions, health insurance and healthcare,” he explained.
Moreover, he also revealed that the state has achieved an increase of 40% in public investments. It also launched many projects which generate jobs and meet the needs of citizens.
Despite the suffering of Egyptian citizens regarding prices being equal to salaries, this still remains a small aspect of the problem, however, the state's ability to provide basic necessities is much more important, explaining that a real issue would be if citizens have the money but cannot find available the commodities they are looking for.
Moreover, he explained that Egypt has made an achievement in terms of reducing the total deficit in the general budget of the state, achieving a decline in the level of public debt from 108% to 98% of the GDP. He also expects it to drop to 93% in June, and then reach 89% in fiscal year (FY) 2019/20.
Regarding imposing new taxes to provide social protection for those with a less than average income, Moeit said there will be no new taxes imposed in FY 2019/20, adding “When we implement a particular policy, we take into account the social dimension and we seek to strengthen the value of the Egyptian pound now. It is not easy, but we will continue the reforms to stabilise the local currency. “
He pointed out that the state has increased government investments in national projects in FY 2019/20 by about 40%. In this year's budget, government investments increased by 60% over the last FY, highlighting that investments led to improved services and created jobs, so the government is focusing on creating new jobs to employ the youth and improve the infrastructure.
"There are no concerns about the debt rates because the budget's items also see a decline in the value of the debt service, which amounts to about EGP 569bn in the state budget for FY 2019/20, compared to about EGP 541bn in the current FY.”
On lifting subsidies, Moeit said that tax revenues must be directed toward funding education and healthcare. He added that petroleum products and electricity subsidies have cost the state EGP 150bn at the expense of other mains sectors. "With only EGP 30-40bn, education and the salaries' and wages' system can be reformed," he said.
Over and above he explained that the recovery policies adopted by Egypt include preparing for new economic crises that may occur in emerging markets because in the second half of 2018 Egypt was hit by several shocks and crises which led to an increase in interest rates and petroleum prices, in addition to foreigners exiting investment in Egypt. "We need to have a larger capacity to accommodate shocks and have a well-functioning economy to deal with new crises," he added.

Clic here to read the story from its source.