Egyptian news in brief

(North Africa) ( 3 minutes read)

• The Egyptian Prime Minister Mostafa Madbouly said the government raised the proposed investment budget for fiscal year (FY) 2020-2021 to EGP 230 billion against EGP 150 billion in the current fiscal year.  The new amount will be used to implement various development and service projects.

• Egypt’s total external debt increased 16% Year on Year (YoY) in Quarter 2 (Q2) of fiscal year 2019-2020, according to the Central Bank of Egypt. External debt reached US $112.6 billion (EGP 1.773 trillion) in Q2 FY 2019-2020, compared to US$96.6 billion (EGP 1.521 trillion) the previous year. On a quarterly basis, external debt increased by 2.9% from $109.4 billion (EGP 1.723 trillion) recorded in Q1 FY 2019-2020. 

• Egypt brought back 104 citizens from India, as part of a plan to return all those stranded abroad.  The repatriates will remain under the usual 14-day quarantine in Marsa Alam before being released. 

• The Central Bank of Egypt (CBE) instructed all local banks to meet all instructions of the International Financial Reporting Standards (IFRS9) to ensure best practices during the COVID-19 The banks are requested to submit brief quarterly statements and annual reports by December 31st of this year or June 30th 2021 where applicable. 

• Egypt’s non-oil private sector collapsed in April, with activity, new business, and exports falling at record rates amid the coronavirus (COVID-19) crisis. Business output was limited, which led companies to adopt large cost-cutting strategies including lower input spending and layoffs. This resulted in the rise of input costs at the softest pace ever seen in the survey.Purchasing activity also fell at the beginning of the second quarter of 2020, the statement added.
• Egyptian Prime Minister Mostafa Madbouly announced a package of decisions aiming at increasing the competitiveness and attractiveness of the Egyptian Stock Exchange (EGX) and to enhance market capitalization. The decisions will lead to reductions in trading service fees. The stock market commissions will decline to 0.0100% from 0.0120%.   The clearing and settlement fees will be reduced to 0.0100% from 0.0125%.