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Thursday, 28 April 2022

Egypt’s budget deficit narrowed in 9M2021-2022 + nothing will be left to rot in port over an L/C

Egypt’s budget deficit narrowed to 4.9% of GDP in the first nine months of FY 2021-2022, from 5.4% in the same period last year, according to figures released yesterday by Ittihadiya. The government is forecasting the deficit to fall to 6.2% of GDP by the end of the current fiscal year from 7.4% last year.

Egypt’s debt-to-GDP ratio is expected to come in at around 85% this year, Finance Minister Mohamed Maait is quoted as saying in the statement. That’s well within FinMin’s previous target of less than 90%, and below the IMF’s latest forecast of 94%.

MEANWHILE- Perishable goods with no L/Cs won’t be left to rot at ports: The Trade Ministry has agreed to release perishable goods from ports to importers who failed to secure the required letters of credit (L/Cs), according to a ministry letter seen by Al Mal. Importers must provide a letter of guarantee or cash deposit for the value of the goods in order to secure their release. The central bank has since March required importers to get L/Cs for their purchases instead of the common practice of documentary collection.

ALSO- Nicotine alternatives producer ANDS will invest USD 20-30 mn in Egypt to fuel its expansion in the country. (Al Mal)

Other things we’re keeping an eye on this morning:

  • The EU is set to strike a migration agreement with Egypt, Morocco and Tunisia to help European employers match with skilled foreign workers. (EUObserver)
  • The National Bank of Egypt will help Damietta Port Authority collect fees via digital payment under a cooperation agreement signed yesterday. (Statement, pdf).
  • Egypt-based Shatablee is eying a business volume of EGP 1 bn next fiscal year after opening its New Cairo HQ. (Ahram Gate)
  • Two people were killed and 44 injured when a bus overturned in South Sinai, around 25 km from Sharm El Sheikh. (Ahram Online)
  • The government has released 3,273 prisoners who received presidential pardons to mark Sinai Liberation Day. (Ahram Gate)

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