Egyptian Finance Minister: Land sales and IMF support will ease budget deficit

Egypt is making progress in lowering its budget deficit by selling real estate and reaching agreement with the IMF on a support package, the country’s finance minister said according to Reuters.

Speaking at a press conference Sunday, Mohamed Maait reportedly said Egypt’s primary budget surplus will rise above 3.5% in the fiscal year beginning July.

 Last month Egypt sold development rights to Ras al-Hikma, a Mediterranean resort destination west of Alexandria, to the United Arab Emirates for $24 billion, and is set to receive more than $20 billion from the IMF after signing a new support deal last week.

Speaking to reporters, Maait said a drop in Suez Canal revenues had damaged the budget at the same time as expenditure had soared because of a sliding currency and higher interest rates on the Egypt’s debts. 

Maait said the government aimed to keep national debt to below 90% of gross domestic product by continued budget tightening and conducting additional asset sales.