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Putting a ceiling on nationalborrowing is on the offing: CBE

Monday 04 February 2019 09:28 AM


By Yasmeen Fawaz

Egypt's national debts have not reached worrying levels even after they headed towards USD93 in December 2018, according to deputy governor of the Central Bank of Egypt Lubna Helal.

" CBE never borrow in normal circumstances but foreign lenders may wish to make deposits, as Arab countries have currently USD17bn deposits whereas those of Qatar and Turkey have been repaid fully," said Helal in speech delivered at House of Representatives while discussing a motion tackling fears that mounting foreign and local debts may encumber and burden future generations.

" Nearly 75 percent of debts are long term and taken from international lenders such as the International Monetary Fund and the African Bank," said she, adding that Egypt has never fallen behind schedule and continues to repay debts on time.

Several loans were injected into developmental projects, transforming them into direct investments, she noted, adding that borrowing rate amounted to 3.4 percent."

Of course, the interest rate of borrowing is fairly high... President Abd El-Fattah El-Sisi, ordered a committee chaired by Minister of Planning and membership of the Central Bank of Egypt to be formed in order to analyze numbers and put a ceiling on borrowing," she said, adding that the committee is likely to accomplish its first report very soon.