April 22, 2019 / 11:29 AM / in a year

Egypt expects borrowing needs to hit $48 bln in fiscal 2019/20 - document

CAIRO (Reuters) - Egypt expects its borrowing needs to reach 820.7 billion Egyptian pounds ($48 billion) in fiscal 2019/20, a 26 percent increase from the previous year, the draft budget seen by Reuters showed.

The draft showed domestic borrowing would increase by 45 percent to 725.2 billion pounds, while foreign borrowing would decline by 36 percent to 95.6 billion.

Egypt expects to issue 435.1 billion pounds worth of treasury bills, against 350.8 budgeted for the 2018/2019 fiscal year, a 24 percent increase, the draft showed.

It also plans a 93 percent increase in treasury bond issuance to 290.1 billion pounds from 150.3 billion.

Egypt also aims to review the general rate of its value-added tax, the draft said, introduced as part of reforms tied to an IMF loan. It will review the list of exemptions in the 2019/20 fiscal year.

“There is no intention to adjust the general price of the value-added tax in the coming period at all,” an official at the Finance Ministry told Reuters on Monday.

“The matter will be studied in the coming months and year. There is no specific vision or intention to adjust at the moment,” the official added.

The document also said Egypt aims to issue its first green bonds in the 2019/20 fiscal year to finance environment-friendly projects.

It further aims to raise tax revenue to 865.5 billion pounds from 759.6 billion, a 13 percent increase, the document showed.

($1 = 17.1375 Egyptian pounds)

Reporting by Ehab Farouk; Writing by Yousef Saba and Sami Aboudi; Editing by Gareth Jones and David Holmes

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