A whopping half of the package will go to tourism, with EGP 50 billion dedicated to keeping hotels afloat.
During a meeting with cabinet members yesterday, President Abdelfattah el-Sisi gave his first televised address on the COVID-19 pandemic, outlining for the first time the exact allocation of Egypt’s EGP 100 billion stimulus package. The government had announced the package last week in its first responses to the Coronavirus, but until now had not specified how it'd be broken down.
According to the President’s address, EGP 50 billion has been earmarked for the tourism industry and keeping hotels afloat, specifically to maintain the operation of hotels and fund their running costs.
EGP 20 billion has been dedicated to the Central Bank of Egypt (CBE)’s support of the stock exchange, which the CBE then confirmed will be used to directly purchase shares in the stock exchange. The stocks have experienced the same Corona-related volatility that has sent the global economy reeling.
A further EGP 27.6 billion is being directly disbursed, within the coming few weeks according to the Minister of Social Solidarity, to 2.4 million families (10 million citizens) through an amendment to a new law allowing pensioners to retroactively add five previous raises to their pay.
The President also announced a 14% annual raise for pensioners, and a two-year freeze on the implementation of the tax on agricultural land.
These measures come in the context of wider government measures to cushion the burden of the Coronavirus on the economy, including the extension of the Ministry of Social Solidarity’s Takaful & Karama conditional cash transfer program to 60,000 more families, as well as financial measures enforced by the CBE to protect businesses and consumers.