Good afternoon, folks, and happy hump day. The news cycle remains relatively subdued today as we inch towards the back half of the week.

THE BIG STORY TODAY

FinMin gives a preview of next fiscal year’s budget: The government plans to spend a total of EGP 596 bn on subsidies in FY 2024-25, Finance Minister Mohamed Maait said, according to a ministry statement. This includes EGP 134 bn for commodity subsidies, more than EGP 147 bn to subsidize fuel products, and north of EGP 40 bn for its Takaful and Karama social safety programs, Maait said.

How does this compare to the current fiscal year? The government’s budget for FY 2023-24 penciled in EGP 127.7 bn for food subsidies, and EGP 119.4 bn for fuel subsidies. Takaful and Karama were allocated EGP 31 bn for the fiscal year.

The government expects to spend some EGP 3.9 tn in the upcoming fiscal year, while total government revenues are expected to come in at EGP 2.6 tn. Tax revenues are forecasted to hit EGP 2 tn in FY 2024-25, with no plans for new taxes, Maait said.

THE BIG STORY ABROAD

A turning point in Japan’s economy: The Bank of Japan hiked its interest rates for the first time in 17 years on Tuesday, pushing its interest rates up to zero after keeping them negative for the last eight years. This marks a shift in its aggressive monetary easing policy which sought to encourage bank lending and restimulate Japan’s deflationary economy.

The story got a lot of attention in the int’l press:Reuters | New York Times | Financial Times | Wall Street Journal

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • A USD 6 bn package from the World Bank: The World Bank will provide Egypt with a USD 6 bn financing package over the nextthree years. The package is subject to the group’s board approval, which is anticipated before the end of June.
  • S&P Global Ratings has become the second rating agency this month to upgrade Egypt’s outlook, raising its outlook to positive from stable, citing a significant increase in foreign direct investment and recent policy measures taken by the Central Bank of Egypt that have helped the country access a bigger package from the International Monetary Fund.
  • Introducing Concrete Fashion Group: Our friends at Arafa Holding are wrapping up ademerger that will see them rebrand as Concrete Fashion Group for Commercial and Industrial Investment and spin off subsidiary GTEX Holding.

☀️TOMORROW’S WEATHER- It’s going to be a sunny day in Cairo with a high of 25°C and a low of 14°C, according to our favorite weather app.

Tags: