{"id":576243,"date":"2020-11-17T04:02:36","date_gmt":"2020-11-17T04:02:36","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/"},"modified":"2020-11-17T04:02:36","modified_gmt":"2020-11-17T04:02:36","slug":"egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/","title":{"rendered":"Egypt ready to dole out more stimulus if covid-19 second wave hits"},"content":{"rendered":"<p><a id=\"tldr-story-01\" class=\"content-anchor\"><\/a><strong> The government is prepared to dole out further stimulus should a second wave of <\/strong><strong>covid-19 take hold in Egypt<\/strong>, Finance Minister Mohamed Maait told <a href=\"https:\/\/bit.ly\/3nu8NJA\">Al Arabiya<\/a> yesterday. The possibility of a second stimulus package, which would follow the EGP 100 bn allocated at start of the pandemic, has already been factored into Finance Ministry calculations, Maait said. The minister previously signaled that the government could allocate more funding beyond the existing package.<\/p>\n<p><strong>Don\u2019t expect much in the way of stimulus if a vaccine becomes available, Maait added<\/strong>. Maait expects the local and global economy to start gathering steam from next year.<\/p>\n<p><strong>Egypt has so far <\/strong><strong><a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c7268a5b-a6d2-48a8-b108-8110d3f0e58e\">disbursed EGP 65 bn<\/a><\/strong><strong> of the original EGP 100 mn package<\/strong> on healthcare, staple goods and employment grants for day laborers, and the state has pushed out an additional EGP 70 bn to increase pensioners\u2019 allowances and boost public sector salaries and pensions.<\/p>\n<p><strong>We\u2019re looking at an amended state budget next month:<\/strong> The minister told Al Arabiya that the pandemic has probably put the fiscal targets in the FY2020-2021 budget out of reach and said that the government will make amendments to the budget in December. <strong>Don\u2019t expect the revised budget to hike taxes <\/strong>after <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/c7268a5b-a6d2-48a8-b108-8110d3f0e58e\">Maait promised last week there would be no new levies<\/a>.<\/p>\n<p><strong>That said, the Sisi administration has no immediate plans to tap international markets<\/strong> after covering its financing needs, Maait said. Egypt has already secured two loans from the IMF, the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/1c23ccc2-49f3-4ec3-8a96-2b792743862c\">USD 2.8 bn rapid-financing instrument<\/a> and the <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/e4b88b68-45c9-4f66-bbba-1e8999ee8f3f\">USD 5.2 bn standby loan<\/a>, and took to market two major sovereign debt issuances, a <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/925263b4-1bc7-4df7-bcdc-3335f83063f0\">USD 5 bn eurobond sale<\/a> and <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/5d1b54d5-5efa-41c9-ac8b-728b105b2ef0\">USD 750 mn green bond offering<\/a>.<\/p>\n<p><strong>And fresh fiscal data is giving cause for optimism: <\/strong>The budget deficit narrowed to 2.6% of GDP during the first four months of FY2020-21, compared to 3.1% in the same period last year, Maait said yesterday, according to <a href=\"https:\/\/bit.ly\/36EtsnH\">Al Mal<\/a>. State finances were bolstered by a 15.5% y-o-y increase in revenue, which was driven by a 11.4% rise in tax takings.<\/p>\n<p><strong>The primary surplus was considerably weaker this year though<\/strong>, coming in at EGP 5.5 bn compared to EGP 12 bn last year. Maait attributed the decline to increased spending on social programs and export subsidies.<\/p>\n<p><strong>We\u2019ll know more when the government releases final figures for FY2019-2020. <\/strong>The administration released some <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/2a87de9d-a077-41e0-95c4-cbfd102a17d4\">preliminary data<\/a> for the full year back in July, but we still don\u2019t know officially how the economy performed in the third and fourth quarters of the last fiscal year, with the Finance Ministry having last published an official update in February covering <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/11420093-0712-45e3-81bd-1dc5f975f8e6\">1H2019-2020<\/a>. We did get a peek last week into the state\u2019s finances at the end of FY2019-2020, when <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/cb83464a-f0fb-4a40-9ec8-41af42bbf9b1\">Maait mentioned<\/a> that the government had suffered a EGP 220 bn shortfall in revenues. Revenues, however, rose by 18.4% y-o-y during the following quarter, helped by a 14.1% increase in tax revenue, he said then.<\/p>\n<p><strong>Further into the future:<\/strong> The government is looking to narrow the budget deficit to 6.5% of GDP in FY2021-2022 from the targeted 7.5% this year, according to a Finance Ministry document picked up by <a href=\"https:\/\/www.nasdaq.com\/articles\/egypt-sees-deficit-falling-to-6.5-of-gdp-next-year-document-2020-11-16\">Reuters<\/a>. The ministry sees the country\u2019s debt pile continuing to rise, hitting 88% of GDP from the 83% forecast this year, despite expecting the average interest rate on government bonds to fall to 13% from 13,5% this year. It also eyeing a headline inflation rate between 6-12% during FY2021-2022, the same as the central bank\u2019s current target range.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The government is prepared to dole out further stimulus should a second wave of covid-19 take hold in Egypt, Finance Minister Mohamed Maait told Al Arabiya yesterday. The possibility of a second stimulus package, which would follow the EGP 100 bn allocated at start of the pandemic, has already been factored into Finance Ministry calculations, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":576244,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[107,7106,104,72,1318,277,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-576243","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-covid-19","tag-debt","tag-economy","tag-enterpriseam","tag-fiscal-policy","tag-mohamed-maait","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"b0cf47be-9482-49f9-bc1a-4e4a1019da07","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2020\/11\/178.jpg","photo_position":"above","related_issue":[576238],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Egypt ready to dole out more stimulus if covid-19 second wave hits - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egypt ready to dole out more stimulus if covid-19 second wave hits\" \/>\n<meta property=\"og:description\" content=\"The government is prepared to dole out further stimulus should a second wave of covid-19 take hold in Egypt, Finance Minister Mohamed Maait told Al Arabiya yesterday. The possibility of a second stimulus package, which would follow the EGP 100 bn allocated at start of the pandemic, has already been factored into Finance Ministry calculations, [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2020-11-17T04:02:36+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2020\/11\/178.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Egypt ready to dole out more stimulus if covid-19 second wave hits\",\"datePublished\":\"2020-11-17T04:02:36+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/\"},\"wordCount\":577,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2020\/11\/178.jpg?fit=%2C&ssl=1\",\"keywords\":[\"covid-19\",\"debt\",\"economy\",\"EnterpriseAM\",\"fiscal policy\",\"Mohamed Maait\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2020\/11\/17\/egypt-ready-to-dole-out-more-stimulus-if-covid-19-second-wave-hits\/\",\"name\":\"Egypt ready to dole out more stimulus if covid-19 second wave hits - 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The bill has so far included: EGP 22 bn for healthcareEGP 10 bn\u2026","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/4\/294.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":571356,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/10\/egypt-has-deployed-just-egp-40-bn-of-funding-from-the-egp-100-bn-stimulus-and-bailout-funding-maait-says\/","url_meta":{"origin":576243,"position":1},"title":"Egypt has deployed just EGP 40 bn of funding from the EGP 100 bn stimulus and bailout funding, Maait says","author":"enterpriseam admin","date":"10 May 2020","format":false,"excerpt":"The government has deployed just EGP 40 bn of the EGP 100 bn earmarked by the government to protect the economy against the covid-19 pandemic, Finance Minister Mohamed Maait said on Thursday, suggesting it has resources left to help cushion the blow to the economy. Some EGP 5.1 bn has\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/5\/87.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":568068,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/12\/16\/last-nights-talk-shows-on-16-december-2020\/","url_meta":{"origin":576243,"position":2},"title":"Last Night\u2019s Talk Shows on 16 December 2020","author":"enterpriseam admin","date":"16 December 2020","format":false,"excerpt":"State coffers are ready to dole out a fresh stimulus package if needed during the second wave of covid-19, with the top priority being healthcare spending, Finance Minister Mohamed Maait confirmed to Yahduth fi Misr\u2019s Sherif Amer. Maait had said last month that more stimulus has already been factored into\u2026","rel":"","context":"In &quot;Enterprise+: Last Night\u2019s Talk Shows&quot;","block_context":{"text":"Enterprise+: Last Night\u2019s Talk Shows","link":"https:\/\/enterpriseam.com\/egypt\/category\/enterprise-last-nights-talk-shows\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":572035,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/06\/09\/govt-spent-egp-63-bn-of-covid-19-stimulus-program-as-finmin-provides-breakdown\/","url_meta":{"origin":576243,"position":3},"title":"Gov\u2019t spent EGP 63 bn of covid-19 stimulus program as FinMin provides breakdown","author":"enterpriseam admin","date":"9 June 2020","format":false,"excerpt":"Egypt has deployed EGP 63 bn of its covid-19 stimulus program: The government has spent EGP 63 bn of the EGP 100 bn it earmarked for a stimulus package to tackle the economic fallout from covid-19, the Finance Ministry said in a statement yesterday, which provided a breakdown of how\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/6\/95.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":570692,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/04\/12\/egypt-could-earmark-more-funding-for-covid-19-fight\/","url_meta":{"origin":576243,"position":4},"title":"Egypt could earmark more funding for covid-19 fight","author":"enterpriseam admin","date":"12 April 2020","format":false,"excerpt":"Egypt\u2019s commitment to insulating the economy from the impact of covid-19 is \u201copen-ended\u201d and could go above the EGP 100 bn in stimulus and bailout funding the Sisi administration has already committed, Finance Minister Mohamed Maait said in an interview with Al Arabiya on Thursday (watch, runtime: 14:38). The administration\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/4\/97.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":571318,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/07\/pandemic-is-expediting-not-pausing-egypts-structural-reform-plans-al-mashat\/","url_meta":{"origin":576243,"position":5},"title":"Pandemic is expediting, not pausing, Egypt\u2019s structural reform plans -Al Mashat","author":"enterpriseam admin","date":"7 May 2020","format":false,"excerpt":"Pandemic is expediting, not pausing, Egypt\u2019s structural reform plans -Al Mashat: The government is not looking to slow down its planned structural reform program on the back of the economic fallout from the covid-19 outbreak, International Cooperation Minister Rania Al Mashat tells CNBC (watch, runtime: 2:29). Some reforms, including widening\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2020\/5\/72.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/576243","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=576243"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/576243\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/576238"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/576244"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=576243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=576243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=576243"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=576243"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=576243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}