Slashing debts saves12 billion to state budget annually

Prime Minister Atef Ebeid said Egypt's debts were slashed to the half, adding this saved L.E. 10-12 billion annually to the state budget.

In an interview with the Economic Forum TV programme, aired on Saturday night, Ebeid said the Egyptian debts were about L.E. 50 billion and the annual installments ranged between $ 3.5 and 4 billion, noting that Egypt is now repaying L.E. 1.400 billion.

He referred to a surplus of $ 3.5 billion, which was mirrored on the state budget.

Ebeid pointed out that when the issue of bank loan defaulters is raised publicilly, it must be raised in its true framework, i.e. as individuals' sins not those of a society.

He elaborated that this issue was immensely detrimental to Egypt and its economy.

He urged development of banking system like the world banks, noting that this development will cost throughout the five years to come L.E. 30-40 million for each bank of the public sector.