Egypt’s borrowing needs to hit $48 Billion in Fiscal 2019/20
A document seen by Reuters has revealed that Egypt expects its borrowing needs to reach 820.7 billion Egyptian pounds ($48 billion) in fiscal 2019/20, a 26 percent increase from the previous year.
The document revealed domestic borrowing would increase by 45 percent to 725.2 billion pounds, while foreign borrowing would decline by 36 percent to 95.6 billion. The country also expects to issue 435.1 billion pounds worth of treasury bills, against 350.8 budgeted for the 2018/2019 fiscal year, a 24 percent increase.
It was also noted that the country is planning to issue a 93 percent increase in treasury bond to 290.1 billion pounds from 150.3 billion.
The document said Egypt aims to review the general rate of its value-added tax, which was introduced as part of reforms tied to an IMF loan. It will review the list of exemptions in the 2019/20 fiscal year.
According to an official at Egypt’s Finance Ministry, “there is no intention to adjust the general price of the value-added tax in the coming period at all. The matter will be studied in the coming months and year. There is no specific vision or intention to adjust at the moment”.
The document said the country aims to issue its first green bonds in the 2019/20 fiscal year to finance environment-friendly projects. It also shows there are plans to to raise tax revenue to 865.5 billion pounds from 759.6 billion, a 13 percent increase.