Egypt lifts budget deficit target to 10.1 pct - Finance minister

Sunday 15-01-2017 05:07 PM

Egypt's Finance Minister Amr El-Garhy attends a news conference in Cairo, Egypt August 11, 2016. Picture taken August 11, 2016. REUTERS/Mohamed Abd El Ghany

CAIRO, Jan 15 (Aswat Masriya) – Egypt’s Finance Minister Amr El-Garhy said in a press conference on Sunday that the government is aiming to control its budget deficit to between 10.1-10.2 per cent by the end of 2016/17.

The government had expected earlier that the deficit would reach 9.8 per cent before revising its earlier forecast to 10.1-10.2 per cent.

Egypt’s budget deficit for the fiscal year that ended in 2016 stood at 12.3 per cent of the GDP.

Garhy said that the budget deficit ratio dropped to 5.1 per cent in the first half of the year from 6.2 per cent in the same period a year ago.

Egypt's government, who is seeking to reduce its cost of funding and narrow the budget deficit, revealed that it is targeting a Eurobond issuance of $2 billion to $2.5 billion when it begins its international roadshow this week.

Egypt is also hoping that their decision to abandon currency controls in November would encourage foreign investors to return to buying Egyptian treasury bills. Garhy said he expects for foreign investment in treasury instruments to reach about $10-$11 billion in one year.

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