Egypt registers primary surplus of 100 mln EGP in Q1 FY20-21

FILE PHOTO: A boat travels along the hotels, banks and office buildings on the Nile River in Cairo, Egypt October 9, 2020. REUTERS/Mohamed Abd El Ghany/File Photo

CAIRO (Reuters) - Egypt registered a primary budget surplus of 100 million Egyptian pounds ($6.39 million) in the first quarter of its 2020-2021 financial year, the cabinet said in a statement on Wednesday citing the finance minister.

It also lengthened the maturity of its debt to 3.2 years as of June from 1.3 years in June 2013. It expects it to lengthen to 3.8 years as of June 2021, the finance minister added.

Egypt reduced its projected primary surplus to 1.4% of GDP from 2% for in the fiscal year that ended in June and projected a further fall to 0.5% in 2020/21 in a letter of intent to the International Monetary Fund (IMF) in June, saying the COVID-19 pandemic was likely to reduce revenue and increase spending needs.

Egypt committed itself to lengthening the maturity of its debts to reduce debt vulnerabilities under a $5.2 billion Stand-By Arrangement signed in June.

($1 = 15.6500 Egyptian pounds)

Reporting by Momen Saeed Atallah; Writing by Nadine Awadalla and Patrick Werr; Editing by Toby Chopra