Ne­go­ti­a­tion with IMF is go­ing smoothly, $2bn loan tranche to be dis­bursed soon: Moeit

New tax­a­tion draft law to be avail­able for social dis­cus­sion dur­ing next two weeks

The Daily News Egypt - - News - By Ha­gar Om­ran

The ne­go­ti­a­tion be­tween the Egyp­tian gov­ern­ment and the IMF is go­ing smoothly, said the Min­is­ter of Fi­nance Mo­hamed Moeit, dur­ing his speech at the third an­nual MENA in­vestor con­fer­ence, or­ga­nized by CI Cap­i­tal on Sun­day. He stressed that the next IMF loan tranche worth $2bn will be dis­bursed to Egypt soon.

Egypt should have re­ceived the $2bn loan tranche last De­cem­ber but the IMF de­layed the dis­burse­ment un­til dis­cus­sions of some de­tails about the coun­try’s planned re­form mea­sures were over.

The min­is­ter noted that the gov­ern­ment is cur­rently dis­cussing the new free in­dex­a­tion mech­a­nism for oil prod­ucts pric­ing, adding “each mech­a­nism dif­fers from its coun­ter­parts in other coun­tries. Some prod­ucts will re­main sub­sidised due to its di­rect re­la­tion with some social seg­ments.”

Moeit added that his min­istry aims to ex­pand the tax base, so it agreed with Ernst &Young to fin­ish a study for sim­pli­fy­ing the tax pro­ce­dure.

“We also pre­sented a pro­posal for new or­gan­i­sa­tional struc­ture.We are in the fi­nal stage of draft­ing a new law that de­fines all the tax pro­ce­dures, in­clud­ing in­come and value-added tax.The new draft law will be avail­able for social dis­cus­sion over the next two weeks.”

Fur­ther­more, Moeit said that the av­er­age growth be­came higher and more re­silient, the mar­ket is more flex­i­ble, and for­eign cur­ren­cies are avail­able, re­fer­ring to the gov­ern­ment plans to in­crease the ef­fi­ciency of the busi­ness sec­tor and launch com­pre­hen­sive social as­sis­tance pack­ages.

“In the past pe­riod, there were many changes in the pe­tro­leum prod­ucts’ prices, which helps in achiev­ing the gov­ern­ment plans to re­duce the fuel sub­sidy and in­crease spend­ing on social pro­grammes,” added Moeit.

Un­em­ploy­ment rates de­clined to more than 9% re­cently, and there will be a fur­ther de­cline in the fis­cal year (FY) 2018/19, men­tioned the min­is­ter, adding that the over­all deficit will de­cline to 7% by the end of FY 2019/20 com­pared to 8.4% by the end of the cur­rent FY.

The min­is­ter noted that he will travel to South Ko­rea and China to pro­mote for­eign bonds for theAsian in­vestors, adding that a del­e­ga­tion from the fi­nance min­istry has trav­elled to Ja­pan and Sin­ga­pore for the same pur­pose.

THE IMF DE­LAYED THE DIS­BURSE­MENT OF THE LOAN TRANCHE UN­TIL DIS­CUS­SIONS OF SOME DE­TAILS ABOUT THE COUN­TRY’S PLANNED RE­FORM MEA­SURES WERE OVER

Min­is­ter of Fi­nance Mo­hamed Moeit

Newspapers in English

Newspapers from Egypt

© PressReader. All rights reserved.