Arab Today, arab today egyptian government borrowed 18 billion pounds in 2 months
Last Updated : GMT 05:53:01
Arab Today, arab today
Arab Today, arab today

Danger of escalating debts

Egyptian government borrowed 18 billion pounds in 2 months

Arab Today, arab today

Arab Today, arab today Egyptian government borrowed 18 billion pounds in 2 months

Ministry of Finance of Egypt
Cairo – Akram Ali

Ministry of Finance of Egypt Cairo – Akram Ali An official from Egyptian Ministry of Finance told Arabstoday that, during the first two months of President Mohamed Morsi’s rule, the government has already borrowed 18 billion EGP (about $3 billion), warning of increased debts. The source also said the government is about to agree to loans in the region of 2.25 billion EGP with some Islamic financial institutions in order to aid the growth of the oil sector.
These deals are to be struck with with Qatar, Kuwait and Saudi Arabia, and our source stressed that, in order to pay all these debts, their interests and instalments, the country’s growth must reach 8%, necessitating the government to attract more foreign investments in all sectors.
Economics expert, and Professor of Public Finance, Abdel Moneim Lotfy, told Arabstoday, “Egypt owes about 170 billion EGP in internal and external debt. This is from previous loans of which payment date and related interest fees are due. If the country’s resources were being used as required, it wouldn’t have borrowed so much and would have been capable of providing services like health, education, sewage, and human development.”

Lotfy emphasised the importance of applying escalating tax rates in order to save high allocations out of the revenues, and share in the national economy.

He then stated that it was vital for the country to start collecting its arrears, decreasing expenses, restructuring the public expenditure and reconsidering power subsidies of high consuming factories, thus minimising the export subsidies.

He also explained that it is necessary to allocate a certain amount of the private funds (more than 5%) which are collected by the Ministry of Finance, with the rest being sent to bank deposits, in addition to encouraging private sector and infrastructure investments to minimise the government’s expenditure and reduce the state public deficit.
Dr Mona al-Baradei, Professor of Economics at Cairo University, said “solving Egypt’s economic issue, especially paying its debts, relies on the need for large scale local investments, and not only depending on foreign investments. Without serious steps taken along these lines, the next balance will allocate escalating amounts of money to pay the instalments and the original amount of the debt.”
Baradei added that “the real risk of these debts lies in the inability to pay the instalments of the loan,” and she stressed the need to increase the Gross Domestic Product (GDP), to curb government spending, to look for new sources to finance the state’s public budget and minimise its deficit so that Egypt wouldn’t continue borrowing, either internally or externally.
She also explained that Egypt still needs to bring back foreign investors in order to decrease the pressure on the local banks, and reduce its financial deficit. In addition, she talked of the necessity of adopting more effective and short-term economic policies which would help in economic stability by stimulating investments.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egyptian government borrowed 18 billion pounds in 2 months Arab Today, arab today egyptian government borrowed 18 billion pounds in 2 months

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal

GMT 21:20 2017 Thursday ,23 March

CBI sells more than $164m

GMT 19:19 2017 Wednesday ,22 March

Saudi Labor minister amends "Netaqat" program

GMT 16:52 2017 Wednesday ,22 March

German's parliamentary delegation visits Tunisia
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Haifa Wahby bets on her new drama show

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 07:03 2017 Wednesday ,22 March

Merna Waleed praises her work with Soad Hosni

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 15:06 2017 Saturday ,25 March

Dialysis Supplies Dwindle for Syrians

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday