عربــى

EGX 30 13,359.00 -0.51%



Public Debt to decrease as percentage of GDP; slowly but surely- Pharos

Public Debt to decrease as percentage of GDP; slowly but surely- Pharos

ArabFinance: Pharos Holding stated that the public debt as a percentage of GDP is expected to decrease from 107.7% in FY2016/17 to 97% in FY2017/18 and to reach 91% in FY2018/19, which is lower than our estimates of 95%.

The expectation is backed by the reduction in the average interest rate on treasury bills and bonds from 18.5% in FY2017/18 to 14.7% in FY2018/19; which is lower than Pharos estimate by 5 bps.

Moreover, the government has stated in the pre-budget of FY2018/19 that it will finance its needs of EGP715 through 71.6% domestic sources of finance mainly treasury bills and bonds, and 28.4% external sources of finance mainly issuing Eurobonds (EGP128 billion) and the remaining tranches of IMF loan (EGP70 billion).

However, the dependence on domestic sources of finance would be increased in the following years to be 84.7% in FY2019/20 and 85% in FY2020/21.

#Related keywords

All rights reserved to Arab Finance 2015 ©

Back to top