Maait reveals surprises about the IMF loan and industrial sector initiative
Egypt reached a preliminary agreement with the International Monetary Fund at the end of last October, providing financing worth $9 billion, including $3 billion directly from the Fund.
Shrouq
Mohamed Maait, Minister of Finance, said that the first installment of the International Monetary Fund loan will amount to about one billion dollars, less than a quarter.
IMF loan
Regarding the first tranche of the loan, the Minister of Finance added in a panel discussion during the CEO's Thoughts conference, "We hope it will be this month."
Egypt reached a preliminary agreement with the International Monetary Fund at the end of last October, providing financing worth $9 billion, including $3 billion directly from the Fund.
The minister said that the financing provided by the IMF is estimated at three billion dollars for a period of four years, in addition to other financing sources that the government is considering.
billion pounds for the industrial sector
On a related note, Dr. Mohamed Maait, Minister of Finance, said that the Central Bank allocated about EGP 200 billion for the industrial sector initiative.
He explained that the total financing granted to the sector amounted to 342 billion pounds, before the initiative stopped.
He added, during the eighth chief executives conference, which is organized by the “Al-Mal GTM” company, today, Sunday, that the industrial sector has submitted objections to the suspension of the initiative due to the high cost of financing.
He pointed out that a meeting is scheduled to be held with the Federation of Industries during the current week, in order to review the situation and discuss the proposals submitted, including the continuation of the initiative, but with a view to its elements and structure.
The “Al Mal GTM” company is organizing the eighth CEOs Conference 2022 CEOs Thoughts on December 4 and 5, with the participation of a group of ministers, businessmen, finance, officials, bankers and economists. The current year’s edition will be held under the title “The Year of Great Challenges”.
government propositions
Dr. Mohamed Maait, Minister of Finance, announced the government's readiness to launch new government proposals by March 2023, in various sectors, most notably the banking, petroleum, petrochemical and insurance sectors.
Maait said, during an economic conference entitled "Grand Challenges", that three governmental proposals have been put forward, namely the Eastern Company for Tobacco, Abu Qir Fertilizers and Y-Finance.
The minister revealed his willingness to issue tourism bonds and complete all procedures and details in preparation for the offering. He expected the value of the first offering to range from 1.5 to 2.5 billion dollars.
Maait added that sovereign sukuk is characterized by low returns and represents a good alternative to European bonds, with a lower cost.
The minister continue that the government is working to diversify funding sources in light of these current global challenges to reduce them, in addition to alleviating pressures on the state's general budget.
