Soft Launch
Minister of Finance on the sidelines of the conference on announcement of the results of tax returns filing for the F Y 2016/2017 

 

The IMF Mission discussions are going very well during its current visit to Egypt

The government currently considers a new issuance of Eurobonds in the international markets in next Mid-June

Eliminating the bureaucratic procedures shall be the biggest incentive for investments

 

Minister of Finance, Amr El-Garhy, announced that the government currently considers a new issuance of Eurobonds in the international financial markets. It is expected that such offering shall be issued at the end of May or in the beginning of Next June, within the required financing procedures for the new budget.

The Minister mentioned that there are many positive circumstances that provide a better environment for the next issue of such notes; including the improvement of national economy indicators, the increase of foreigners’ turnout to invest in T-Bills during the last period.

Regarding the second tranche of IMF’s Loan, estimated at 1.2 billion EG, the Minister confirmed that it is expected that the second tranche will be received during the second half of next June, noting that the negotiations are going very well with IMF Mission currently visits Egypt.

The above-mentioned declared by Minister of Finance on the sidelines of the conference on announcing results of tax returns filing for the F Y 2016/2017

El-Garhy confirmed that the portfolio of Energy and Electricity Subsidy was left undeveloped for many years; resulting in further complexity. He noted that the reform plan for this file targeted achieving financial safety for both sectors of Energy and Electricity; achieving many benefits for citizens in the medium and long term, which includes providing a high-quality fuel and electricity at a lower  cost, in addition to minimize  the wastes while increasing investment flows directed to both sectors.

According to the Ministry plan to control public debt and budget deficit, the Minister affirmed that the more capability we have to achieve primary surplus in State Budget, the more capability we have to control the public debt and accordingly decrease the ratio of budget deficit; which will be reflected in decline of inflation ratios.     

In response to a question on the potential government study concerning increase of interest rate to control inflation rates, the Minister indicated that the Central Bank of Egypt, the entity responsible for development of monetary policy, shall adopt the most suitable decision in this regard.

The Minister assured that the Ministry currently considers a package of procedures which target the low-income sects and such procedures will nearly be announced.

Regarding the Ministry vision on Investment Law, the Minister confirmed that he fully supports Investment and that tax exemptions are not the only incentives, but also improvement of investment climate and elimination of bureaucratic procedures in establishing projects are the essential incentive for investments.

He added that new investment law draft will include changes in investment ratios and incentives, as well as the mechanism of their calculation and their associated fees, in addition to review the companies’ budgets in the free zones. He cleared that the established standards must express our capabilities in achieving the required goals of establishing such zones.

The Minister clarified that it is potential to build new companies and industries in such zones rather than import, which contributes in bringing new technology. He mentioned that the government’s approval to build such zones to have more opportunities to attract some industries, contributing in development or addition of a particular industrial activity needed in the Egyptian markets.