Egypt will not take out new loans except for compelling developmental needs: Minister

Ahram Online , Monday 5 Jun 2023

Egypt will not take out new loans unless they are on soft terms and only for compelling developmental needs, Minister of Planning and Economic Development Hala El-Said told the Senate on Monday.

 Hala El-Said
Minister of Planning and Economic Development Hala El-Said. (Photo: Al-Ahram)

El-Said's remarks came during her presentation of the ministry's development plan for the coming fiscal year 2023/2024.

She added that the country has deliberately reduced spending and increased investments to contain inflation.

According to the Central Bank of Egypt (CBE), ​Egypt’s foreign debt hit $159.4 billion during the first quarter (1Q) of FY2022/2023, up from $155.7 billion in the corresponding quarter of FY2021/2022.  

Egypt and the IMF concluded a 46-month $3 billion loan deal.  

In her statement, reported by Ahram Arabic Gate, the minister noted that the plan focuses on the sectors of industry, agriculture, and communications to increase the resilience of the Egyptian economy.

El-Said noted that the plan also seeks to increase private-sector participation. She cited the State Ownership Policy Document, which determines the presence of the state in the various economic sectors, as emblematic of the country's direction to attract investors.

The document guarantees competitive neutrality and identifies the sectors from which the state will dissociate, such as water desalination and wind energy projects, she added.

Furthermore, El-Said highlighted that the plan also seeks to benefit from youths, who constitute 60 percent of the country's population, to meet the needs of the labour market.    

She explained that as a result of the coordination with the Ministry of Education and Technical Education, more graduates of majors that are highly in demand have begun to enter the market.

In conclusion, the minister stated that the country focuses on social protection schemes, such as the  Decent Life initiative and the national project for developing the Egyptian family.


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