Egypt to Receive First Tranche of IMF Loan Next Week amid Increasing Dollar Flows
Director of the International Monetary Fund Kristalina Georgieva speaks meets with Egypt’s Prime Minister Mostafa Madbouly in the presence of the Governor of the Central Bank and Minister of Finance. (IMF Director on X)
Egypt’s Outlook Raised by Fitch After $57 Billion Global Bailout
Fitch revises Egypt's outlook to positive on reduced external financing risks
May 03, 2024 at 05:08 pm EDT
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May 3 (Reuters) - Global ratings agency Fitch revised Egypt's outlook to positive from stable on Friday.
The agency affirmed Eygpt's rating at 'B-', citing reduced external financing risks and stronger foreign direct investment.
(Reporting by Sruthi Narasimha Chari & Anandita Mehrotra in Bengaluru; Editing by Tasim Zahid)
Egypt’s Outlook Raised by Fitch After $57 Billion Global Bailout
S&P upgrades Egypt’s economic outlook to positive
RIYADH: Egypt’s economy witnessed an uptick in ratings as S&P Global upgraded its outlook for the country to positive from stable.
The US-based firm also affirmed Egypt’s debt rating at “B-/B,” according to a statement.
This move is indicative of the fact that the country currently has the capacity to meet its financial obligations but faces ongoing uncertainties.
The US-based firm also affirmed Egypt’s debt rating at “B-/B,” according to a statement.
This move is indicative of the fact that the country currently has the capacity to meet its financial obligations but faces ongoing uncertainties.
In a statement, the agency said: “We see the exchange rate liberalization, alongside Egypt’s stated commitment to stick to ambitious budgetary consolidation targets, as a key step in shoring up confidence and growth in Egypt’s economy and its debt sustainability.”
However, S&P expects the country’s gross domestic product growth to dwindle to about 3 percent in the current fiscal year, driven by the limited foreign currency availability, high inflation, and tight monetary policy, but to rebound from 2025 onward to 3.8 percent.
The agency also forecasted that increased foreign currency availability resulting in reduced restrictions on foreign exchange could also prompt an upgrade.
However, S&P expects the country’s gross domestic product growth to dwindle to about 3 percent in the current fiscal year, driven by the limited foreign currency availability, high inflation, and tight monetary policy, but to rebound from 2025 onward to 3.8 percent.
The agency also forecasted that increased foreign currency availability resulting in reduced restrictions on foreign exchange could also prompt an upgrade.
Earlier this month, the International Monetary Fund approved increasing a support program for the country from $3 billion to $8 billion following the liberalization of the exchange rate and the raising of interest rates.
This also comes after the nation obtained an investment worth $35 billion from the UAE in February to develop a stretch of its Mediterranean coast.
This also comes after the nation obtained an investment worth $35 billion from the UAE in February to develop a stretch of its Mediterranean coast.
- The agreement with Abu Dhabi Developmental Holding Co., the smallest of the emirate’s three main sovereign investment funds, seeks to develop the Ras El Hekma peninsula, potentially attracting as much as $150 billion in investments, Egyptian Prime Minister Mostafa Madbouly said in press conference at that time.
Egypt to Receive First Tranche of IMF Loan Next Week amid Increasing Dollar Flows
Egypt will receive the first tranche of an expanded loan agreement with the International Monetary Fund (IMF) next week, Prime Minister Mostafa Madbouly said during a press conference on Saturday.
The expanded $8 billion financial support program enables the immediate release of $820 million, according to a statement by the IMF.
Madbouly noted that he was following up with Central Bank Governor Hassan Abdullah on foreign currency flows, indicating that the first installment of the IMF loan will be received next week.
In a statement, the Fund said that Egypt can withdraw about $820 million immediately, indicating that implementing economic policies within the framework of the program is important to confront the macroeconomic challenges in this country.
The expanded $8 billion financial support program enables the immediate release of $820 million, according to a statement by the IMF.
Madbouly noted that he was following up with Central Bank Governor Hassan Abdullah on foreign currency flows, indicating that the first installment of the IMF loan will be received next week.
- He also stressed that the government will work to ensure the completion of all reform paths and the return of dollar flows to normal.
In a statement, the Fund said that Egypt can withdraw about $820 million immediately, indicating that implementing economic policies within the framework of the program is important to confront the macroeconomic challenges in this country.
- It continued that the Ras Al-Hekma investment deal will ease financing pressures in the near term, stressing that external shocks and delayed policy adjustments affected economic activity in Egypt, which led to a slowdown in growth to 3.8 percent in the fiscal year 2022-2023.
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