Egypt’s Foreign Reserves Likely to Hike to $20 bln in September – PM

Egypt’s foreign cash reserves are likely to rise within this month to around US$20 billion despite the ongoing economic challenges that haunt the national economy, the country’s prime minister said in a newspaper interview on Thursday.

Prime Minister Hazem el-Beblawi also told Al Masry Al Youm newspaper that Egypt is facing two grave economic woes; ‘a large scale unemployment as well as the financial deficit.’

The prime minister further noted that the interim government has already started carrying out rationalizing subsidized energy programs.

On the mounting budget deficit, Mr. Beblawi referred that it comes as a result of the higher expenses against the revenues. However, he said Egypt’s foreign reserves will witness breakthroughs on September to hike to US$ 20 billion backed by the Gulf aids and deposits. Kuwait sent to the Central Bank of Egypt US$ 2 billion two days ago.