Last Update 21:29
Thursday, 14 November 2019

The new stimulus package is worth LE20 billion, says Finance Minister

The minister of finance, Youssef Boutros Ghali, has determined LE 20 billion, as the third stimulus package since the beginning of the World economic crisis in 2008.

Amr El Feki, Wednesday 24 Nov 2010
ghali 1
stimulus package, gain with no pain
Share/Bookmark
Views: 2014
Share/Bookmark
Views: 2014

Finance Minister Youssef Boutros Ghali has announced a LE20 billion stimulus package – the third such package since the beginning of the 2008 world economic crisis. This package will be financed by the commercial banks under the supervision of ministry of finance.

The new stimulus is intended to boost local demand by targeting the wide base of civil servants. The stimulus plan will grant small loans to the civil servants and the public sector employees. The ministry will guarantee the loans so as to reduce the risk and encourage the banking sector, the minister said yesterday during the opening of the new headquarters of Alexandria SaoPaulo Bank.

The package will be aimed at the real estate sector and durable goods which would boost investment spending and increase the local demand, argues Minister Ghaly, who also added that this third stimulus package, unlike previous ones, will not add any pressure on the state budget since it will only be financed by the banking sector.

The ministry has already reached an agreement with the Bank of Alexandria to be a partner in the new stimulus packages and is now negotiating with other local banks. No other responses from the banking sector were announced since the unveiling of the plan on 9 November.

In order to finance the two previous stimulus packages Egypt had to allow the budget deficit to widen by LE15 and LE10 billion, used to finance infrastructure projects. In the financial year of 2009-2010, the deficit stood at 8.1 per cent.

Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.