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Sunday, 2 September 2018

FinMin working on new comprehensive fiscal strategy

FinMin working on new comprehensive fiscal strategy: The Finance Ministry is developing a fiscal policy strategy aimed at improving Egypt’s debt position and trimming both the budget and current account deficit, said Finance Minister Mohamed Maait on Friday, according to Al Ahram. The new strategy appears to be extensive, covering everything from foreign trade to expanding the fuel hedging program to cover other key goods imported by Egypt which are at the mercy of market fluctuations (we will assume for now this will include wheat). The strategy will also impact the development of industry, he added without elaborating.

FinMin to be part of all loan negotiations in which it’s being called on to provide a guarantee: The new strategy also appears to include changes to the ministry’s policy on providing financial guarantees for loans, Vice Minister of Finance Ahmed Kouchouk said on Friday. The change would see the Finance Ministry included in all negotiations between the borrower and the lending institution (whether local or foreign) before signing off on a loan guarantee. Large facilities from foreign lenders for major local projects often require financial guarantees from the government.

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