The Egyptian government was working to manage macroeconomic risks with flexibility to contain successive external shocks, and dealt with the negative effects of the geopolitical tensions with extreme caution, the Egyptian Finance Minister Mohamed Maait has said.
“The government was keen on meeting the basic needs of the Egyptian citizens, and alleviating social protection networks. This approach helped secure an initial surplus of 150 billion Egyptian pounds in the first half of the current fiscal year 2023/2024, while increasing expenditure by 56 per cent,” Dr Maait added, commenting on Moody’s decision to maintain Egypt’s sovereign debt rating at Caa1.
The government’s Initial Public Offering (IPO) programme, through which the country was successful in withdrawing from economic activities worth $3,5 billion, strengthened Egypt’s ability to meet its financing needs over the next two years and to attract more investment inflows, reducing the need for external financing, according to the statement.
“This reflects the confidence of international institutions in the economic path pursued by the Egyptian government through financial policies capable of achieving financial discipline and maintaining a sustainable primary surplus,” Maait said.
The minister also said that Egypt was on the right path of meeting its external financing requirements of the state’s budget. It has successfully issued Panda and Samurai bonds, the statement added.
