Egypt Secures IMF Support Package, Reduce Budget Deficit

Egypt has embarked on significant initiatives aimed at decreasing its budget deficit, including the sale of real estate assets and reaching a support agreement with the International Monetary Fund (IMF), announced Finance Minister Mohamed Maait on Sunday.

He revealed that Egypt’s primary budget surplus is projected to exceed 3.5% in the upcoming fiscal year starting in July.The primary surplus, excluding interest payments, is a key indicator of fiscal health. Despite interest payments comprising a substantial portion of expenditure, Egypt has maintained a deep deficit. The finance ministry had previously forecasted a primary general budget surplus equivalent to 2.5% of gross domestic product (GDP) for the current fiscal year 2023/24.

In February, Egypt finalized the sale of development rights to Ras al-Hikma, a prominent Mediterranean resort destination, to Abu Dhabi for $24 billion. Additionally, Egypt anticipates receiving over $20 billion from an IMF-led package signed last Wednesday. This comprehensive package includes $3 billion in funding from the World Bank, as disclosed by Minister Maait.

Source: Reuters