Egypt registers primary surplus of LE100 mn in Q1 FY20-21

Egypt registered a primary budget surplus of LE 100 million (US$6.39 million) in the first quarter of its 2020-2021 financial year, the cabinet said in a statement on Wednesday citing the Finance Minister.

It also lengthened the maturity of its debt to 3.2 years as of June from 1.3 years in June 2013. It expects it to lengthen to 3.8 years as of June 2021, the Finance Minister added.

Egypt reduced its projected primary surplus to 1.4 percent of GDP from 2 percent for in the fiscal year that ended in June and projected a further fall to 0.5 percent in 2020/21 in a letter of intent to the International Monetary Fund (IMF) in June, saying the COVID-19 pandemic was likely to reduce revenue and increase spending needs.

Egypt committed itself to lengthen the maturity of its debts to reduce debt vulnerabilities under a US$5.2 billion Stand-By Arrangement signed in June.

(US$1 = LE15.6500)

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