Egypt Aims to Raise Interest on T-bills to 22% in 2024/25 Draft Budget

The Egyptian Ministry of Finance aims to increase the average interest rate on treasury bills to 22% in the draft budget for the next fiscal year 2024/25, compared to an estimated return of 18.5% in the current fiscal year, amid estimates of a sharp decline in inflation to 15%.

The Ministry of Finance expects an increase in the real growth rates of the economy to 4.7%, compared to estimates of 3% in the current fiscal year, and a decline in the total deficit to 7.2% of GDP in the budget for the next fiscal year 2024/25, compared to estimates of a 7.5% deficit in the current fiscal year as a result of the economic and geopolitical conditions.

The draft budget for the next fiscal year aims to achieve a primary surplus of 2.5% of the GDP, reduce the debt ratio of budget to 92% of the GDP, and expand the establishment of cities and urban complexes to accommodate 10 million people.

During the next fiscal year, the Ministry of Finance aims to continue issuing new and diverse debt instruments, at a lower cost, in various markets such as East Asia, sukuk, sustainable development bonds, and green bonds to finance financing needs and the budget deficit and meet the needs of market investors from banks, pension funds, and the Authority, according to the draft budget.