Back to the complete issue
Thursday, 31 May 2018

Cabinet signs off on EGP 70 bn overdraft for FY2017-18 state budget

CABINET WATCH- The Ismail Cabinet signed off yesterday on an EGP 70 bn overdraft for the FY2017-18 state budget to cover “necessary expenditures,” according to a statement. The statement does not provide further details on the decision, but Vice Minister of Finance Mohamed Maait had told Enterprise last week that Cabinet was looking into raising the budget’s overdraft on account of higher oil prices. The government had assumed oil would average EGP 55/bbl but Egypt has reportedly been importing fuel at USD 75/bbl as oil now trading at a high not seen since 2014.

The Council of Ministers also signed off on a USD 500 mn loan agreement with the World Bank aimed at supporting the state’s K-12 educational reform strategy. The new system will be implemented as of the new academic year starting in September for kindergarten and students in the first years of primary and secondary education. The Education Ministry plans to do away with the education system currently in place by 2026, minister Tarek Shawki had said earlier this week. The revamp is expected to cost a total USD 2 bn when all is said and done.

New financing for development of electricity grid: The government has allocated EGP 25 bn to develop the country’s electricity grid over the next two years, Electricity Minister Mohamed Shaker told reporters yesterday, according to Al Masry Al Youm. Ministers also signed off on a USD 198 mn loan from the Arab Fund for Economic and Social Development earmarked for the nation’s power grid.

Also at yesterday’s cabinet meeting, ministers approved:

  • The Military Production Ministry’s MoU with China’s GCL Group to establish a USD 2 bn solar panel factory;
  • Taking the necessary measures to select a company to manage and operate the Grand Egyptian Museum;
  • A bundle of decisions and recommendations from the ministerial committee for the resolution of investment disputes;
  • A presidential pardon for an unspecified number of prisoners ahead of Eid Al Fitr.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.