Egyptian Minister of Finance Mohamed Maait said on Sunday in a press conference that he hopes his country will obtain $750m — the first tranche of the International Monetary Fund (IMF) loan — this month, which represents 25% of the $3bn financial support programme.
On 27 October, Egypt reached an agreement at the level of IMF experts for a financing programme that will span 46 months (about three years and 10 months) at a value of $3bn.
The Egyptian government has taken many reform measures to reduce the USD crisis and accelerate obtaining the approval of the Executive Board of the IMF for the $3bn loan by liberalising the exchange rate on 27 October.
In another context, Maait stated that EGP 37.5bn have been paid to more than 2,500 exporting companies over the past two and a half years, pointing out that the state’s public treasury has been bearing the cost, exempting the private sector from EGP 4.5bn in real estate tax and EGP 6bn for providing electricity. Additionally, EGP 5.5bn will be made available to support exporters and producers.
The minister added that exemptions were provided for industrial sectors from the real estate tax for a period of five years at a value of about EGP 4.5bn.
He noted that the state budget is subject to many pressures, the most prominent of which is the increase in interest rates globally, the change in exchange rate, and other challenges.
Maait further pointed out that preparations are underway to issue tourism sukuk and that all procedures and details have been finalised in preparation for the offering, which is expected will range from $1.5bn to $2.5bn in value.
Sovereign sukuk are characterised by low returns and represent a good alternative to European bonds with a lower cost, he disclosed.