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Tuesday, 28 June 2016

Deficit from oil could reach EGP 12-15 bn in FY2016-17 budget –El Garhy

Oil rebounding to USD 50 per bbl could cause a deficit in the FY2016-17 budget of EGP 12-15 bn seeing as the government is basing its projections on an average oil price of USD 40 per bbl, Finance Minister Amr El Garhy said, AMAY reported on Monday. Planning Minister Ashraf Al Araby confirmed as much last month in a statement on Egypt’s growth targets and metrics for the current and next fiscal year, with the Finance Ministry stating previously that a hike of USD 1 per bbl in the price of oil would lead to a EGP 1.1 bn spike in the budget deficit. El Garhy also added that Egyptian General Petroleum Corporation had suffered estimated losses of EGP 400 bn due to the oil price rebound.

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