Egyptian treasury pays EGP 160.5 billion to NOSI in debt settlement

The Egyptian Public Treasury Authority paid EGP 160.5 billion to the National Social Insurance Organization (NOSI) under the first installment of a debt settlement agreement between the Ministry of Social Solidarity and the Ministry of Finance.

Finance Minister Mohamed Maait said the payment was made to secure the necessary financial liquidity to serve retirees, their beneficiaries and policyholders, and to fulfill all obligations to them.

The minister said the state treasury will pay the second tranche worth EGP 170 billion to NOSI from the budget for fiscal year 2020/21, of which EGP 35 billion representing the five bonuses recently granted to retirees.

Maait explained that the cost of the five bonuses for retirees amounts to EGP 8 billion per year, as of fiscal year 2020/21.

The minister noted that the second tranche will also include the 14% bonus provided for retirees from July 1.

“We continue to pay the financial obligations to NOSI under the debt settlement agreement over the next few years, and the value of the third installment will be around EGP 180 billion,” Maait said.

The Minister underlined that the rate of increase of the annual payment of the debt to the ONSI was modified to 5.9% instead of 5.7%. The amendment was intended to accommodate government measures aimed at improving the living conditions of retirees, including the five bonuses.

Maait noted that the state treasury will pay approximately EGP 1.363 billion in total to NOSI under the debt settlement agreement within seven years of its signing.

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