Egypt's domestic debt jumps 23 pct. in FY 2015/ 2016 -

Wednesday 26-10-2016 04:05 PM

Egypt's Central Bank, Reuters

CAIRO, Oct. 26 (Aswat Masriya) - Egypt's domestic debt shot up by 23 per cent in fiscal year 2015/2016 compared to the year before, the central bank said in its report on Wednesday.

Domestic debt rose to EGP 2.619 trillion by the end of June from EGP 2.116 trillion at the end of June 2015, according to central bank statistics.

President Abdel Fattah al-Sisi said in August that the increase in wages during the past four years has led to the growth of the domestic debt.

"In a year, wages increased by EGP 150 billion, leading to an upsurge in the domestic debt which has grown from EGP 800 billion in 2011 to EGP 2.3 trillion now," Sisi said.

However, the state general budget figures for FY 2010/2011 up until FY 2015/2016 suggest an increase in spending on wages and workers' compensation by only EGP 122 billion.

The domestic debt more than doubled from EGP 1.04 trillion in FY 2010/2011 to EGP 2.61 trillion in the past year.

Egypt's economy has been facing multiple pressures with a growing budget deficit and an acute dollar shortage that has impacted many businesses.

The government is in the process of implementing an economic reform programme that includes introducing the value added tax, cutting energy subsidies and adopting a more flexible exchange rate regime.

($1 = 8.8799 Egyptian pounds)

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