Egypt: budget reduced by 15 billion pounds sterling

A reduction in interest rates would save up to 15 billion pounds ($ 925 million) in the public budget, said Sunday a government statement.

Among the expected effects of the reduction in interest rates include "a saving of 10 billion to 15 billion pounds for the state budget, as well as a major incentive for the Egyptian capital market and an increase in stock market activity on the Egyptian stock market, "according to the statement.

The statement did not specify exactly how long the expected savings would be realized.

Egypt had previously expected debt interest to reach £ 541.747 billion in the 2019-2020 fiscal year starting July 1, compared with £ 437.448 billion in the previous year.

Last month, the Egyptian central bank lowered its key rates by 150 basis points last month for the first time since February. The overnight deposit rate fell from 15.75% to 14.25% and the 24 year mortgage rate from 16.75% to 15.25%.