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Cabinet to hold weekly meeting Wednesday, Prime Minister to hear ministers’ proposals on budget development
Central bank reports estimates net external debt rose by 5.8%, as a result of increased borrowing and higher exchange rates against the dollar
“Future generations should not inherit this debt,” the presidential candidate says
Egypt is facing a serious issue as a result of the government’s inability to pay its debts to foreign partners in light of the poor economic situation.
Reuters – Egypt’s debts to foreign oil companies operating in the country rose to $5.7bn by the end of March, the head of the state-run oil company told Reuters, up $800m from the government’s last reported figure despite recent repayments. Money owed to foreign oil majors including BP and BG Group totalled $4.9bn in December, indicating Cairo’s debts to …
Reuters – Egypt will pay about $1bn of the money it owes to foreign oil companies within the next two months, the state’s MENA news agency said, quoting Oil Minister Sherif Ismail. Egypt says it owes some $6.3bn to those companies. It last year said it paid $1.5bn of the money it owes the international firms as part of …
Reuters – Egypt will return $3 billion that were invested in bonds to Qatar when the debt matures by the end of the year, a central bank source told Reuters on Thursday. “We will return $500 million to Qatar in October and $2.5 billion in November (for) the bonds,” the source said. Three years of political instability have left the Egyptian …
Egypt has diversified debt instruments, but still has the same creditors
Interest rate sharply reduced but the government’s options remain limited
The government is ignoring Sukuk and depending on Arabs to meet urgent needs
Reuters – Egypt has agreed on a timetable to pay $3 billion of the $6.3 billion it says it owes foreign oil companies, the state news agency reported, as part of the drive to revive confidence in its economy hammered by nearly three years of political turmoil. The most populous Arab state struck deals to pay the amount in …
Reform is needed to boost investor confidence and bring back higher levels of FDI
Bessma Momani has a PHD in political science with a focus on international political economy. She is an associate professor at the Balsillie School of International Affairs at the University of Waterloo and authored the book IMF-Egyptian Debt Negotiations.
Momani highlighted three key areas investors view as intersecting with politics: confidence, perception and reform.
Reuters – Yields on Egyptian treasury bills rose at an auction on Thursday and the central bank sold all the debt it had offered. The average yield on 182-day treasury bills increased to 11.174 percent at Thursday’s auction from 11.133 percent last week, the central bank said. The yield on 357-day T-bills edged up to …
The bad news for America’s worried friends is that new stalemates over budgets and borrowing are looming early next year.
Merkel’s comments to Focus news weekly come a month before elections in Europe’s biggest economy and days after the woes of debt-mired Greece lurched onto the campaign trail.
The global research company says that civil unrest in Egypt has increased the country’s market-based probability of default
Qatar, meanwhile, had granted Egypt $2.5bn in loan last January, and extended a further $3bn in May by agreeing to buy Egyptian bonds at 3.5% interest.
On Monday, the advisor of the finance minister, Hamdy Samir,confirmed the ministry’s commitment to timely debt payment.
Domestic public debt hit EGP 1.387tn (about $200bn) in April, foreign debt at $42bn
Egypt forced to change fuel suppliers as debt compiles
Minister of Planning and International Cooperation Amr Darrag discussed a €200m grant to support Egypt’s public budget (currently running a 10.6% of GDP deficit) with EU delegation head James Moran
Last year, the budget deficit reached EGP 134.996bn.
Internal debts hit an alarming EGP 1.4tn, equivalent to about $200bn.
Deal part of debt swap agreement initially stalled by German Chancellor Angela Merkel
Badran: the loan is against the constitution
The value of personal loans made in November 2012 increased by EGP 900m from the month of October. The total value of loans in local currency was EGP 111.2bn for the month of November 2012, as opposed to EGP 110.2bn in October 2012. During the same period, loans made in foreign currency increased from EGP …
Average public debt in MENA countries is more than 78% of GDP, and slower than projected growth or higher interest rates could put debt on an unsustainable path.
Al-Ahram accounts for lion’s share of debt, owing EGP 5.85bn
Human vs machine, IMF in Cairo, interest payments on Egypt debt
The beginning of this fiscal year has seen the EGPC balancing debt to banks and financial obligations to foreign companies
Egypt debt default, Algeria lifeline, green energy thinking
The government’s prescription to treat the economic recession we’re currently enduring has been a two-fold solution of increasing foreign investment and seeking more international loans. The monetary policy of maintaining the stability of the Egyptian pound against depreciation is a top priority. But how long can the state keep this up? How overvalued is the …