Moody's, the credit rating agency, stated that Egypt's achievement of an initial surplus in its budget, with the lower interest cost and the return to achieving significant growth levels, paves the way for the government to resume achieving the goal of reducing the debt-to-GDP ratio. The agency granted Egypt a credit rating of B2 with a stable outlook.
The agency expected in its report that Egypt's debt will decline below the expected level, to exceed 90 percent of GDP in the fiscal year ending in mid-2021.
The agency revealed that the government's targets for the new budget, which will begin next July, renew the direction the government was taking before the Corona pandemic to control the financial conditions, revealing that these targets are broadly in line with the government's public finances expectations.
According to the agency, the financial data for the first half of the current fiscal year ending in December 2020 confirm the government's efforts to preserve revenues during the pandemic, and to gradually reduce interest payments as a percentage of GDP and revenue. Indicating that this saving leaves room for the new budget for social spending and the planned increase in wages without causing any impediment to the general trend of controlling the government's public finances.
Source (Al-Arabiya.net, Edited)
