(AFP Photo)
Approximately EGP 19bn ($5.3bn) of Suez Canal annual revenues will be set aside in a special account at the Central Bank of Egypt to pay the principal value for canal certificates EGP 60bn, Minister of Finance Hany Kadry Dimian told the Daily News Egypt.
During his visit to Ismailia to revive the El Amal Village project in the presence of the Prime Minister and Minister of Planning, Dimian explained that the assets are set to be fully paid within five years while certificate revenues will be paid on a quarterly basis.
As a precautionary measure, EGP 12bn will be set aside to pay the principal of the certificates, while another EGP 7bn will be set aside for investment certificates which will be paid on a quarterly basis, said Dimian.
He explained that the deficit is expected to increase over the next two years as the EGP 19bn set aside to pay investment certificates will be financed by the government debt market with the help of banks.
Dimian added that canal revenues will increase to nearly EGP 60bn by the end of 2023.
The consultations that will soon begin with an International Monetary Fund (IMF) delegation in Cairo are vital and necessary, according to Dimian, because they will enable Egypt to trust in its latest economic policy and the neutral IMF will be able to address the international financial community. This will assure others of the maturity of Egypt’s current policy and recent economic reforms, he said.
Dimian believes that IMF confidence in Egypt’s economic policy will contribute to the success of the economic summit set to be held next February in Sharm El-Sheikh and generate major investments from the international and local financial community for development projects in the Suez Canal and the North West Coast as well as the Golden Triangle Project.
