The European Union (EU) and the World Bank Group (WBG) have allocated over $14 billion in finances to Egypt amid the country’s challenging economic situation over the past two years, separate statements showed. EU aid The EU announced a €7.4 billion ($8.1 billion) aid package to support Egypt’s economy, stabilize the conflicted region, and mitigate potential migration crises in Europe, particularly stemming from tensions in Gaza and Sudan. This aid is part of the three-year EU-Egypt strategic partnership, including €5 billion in soft loans for economic reforms, €1.8 billion to support private sector investments, and €600 million in grants, including…
Author: Doaa A.Moneim
State-owned major banks, the National Bank of Egypt (NBE) and Banque Misr have introduced new high-yield certificates of deposit (CDs) with a three-year tenor and a decreasing yield structure. These new CDs offer an initial annual yield of 30% for the first year, which decreases to 25% in the second year and further drops to 20% in the third year. Additionally, the NBE has adjusted the annual yield on its three-year Platinum CD to 26% for the first year, 22% for the second year, and 18% for the third year. It has also modified the yield on the three-year Platinum…
Egypt’s budget achieved a primary surplus of 3.9 billion (EGP 193 billion) in the past eight months of FY2023/2024, compared to $857 million (EGP 41.8 billion) in the same period of the previous fiscal year, representing a growth rate of over 4.5 times, Minister of Finance Mohamed Maait said in a press conference last week. Key figures General revenues rose by 34.6%, fueled by a 38.3% growth in tax revenues, reaching $18.3 billion (EGP 892 billion) compared to $13.2 billion (EGP 645 billion) in the corresponding period of the previous fiscal year. The overall deficit rate increased to 6.7% of…
Egypt’s annual headline inflation, which had declined for four consecutive months, reversed course in February, reaching 219.4 points with an annual rate of 36%, compared to 31.2% in the previous month, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS). Price hikes The significant increase was driven by soaring prices across various sectors, with notable price hikes observed in meat and poultry (25%), grains and bread (14.2%), fish and seafood (11.5%), dairy products, honey, and eggs (12.8%), oils and fats (14.1%), fruits (7.3%), vegetables (9.2%), and sugar and sweets (6.9%). Monthly inflation surged to 11% in…
Moody’s Ratings has revised Egypt’s outlook from negative to positive while affirming the country’s Caa1 long-term foreign and local currency issuer ratings. The Caa1 rating indicates that Egypt is in poor standing and faces very high credit risk, according to Moody’s Long-term Corporate Obligation Rating definitions. Why now? Moody’s decision follows the recent move by the Central Bank of Egypt (CBE) to raise key interest rates by 6% in an unscheduled meeting and allow the local currency rate to be determined by market supply and demand forces. “The change in Egypt’s outlook to positive reflects significant official and bilateral support…
S&P Global Ratings revised in March its outlook on Egypt’s economy to positive from stable while affirming its B-/B’ long- and short-term foreign and local currency sovereign credit ratings of Egypt. The action came almost two weeks after the unprecedented moves taken by the Central Bank of Egypt (CBE) on March 6, through which the key interest rates have been hiked by 6% (600 bps), as well as letting the local currency be set according to the local market’s supply and demand forces. On the same day, the International Monetary Fund (IMF) announced an expansion for its Extended Fund Facility…
After two years of negotiations, the International Monetary Fund (IMF) has reached an agreement with Egypt to increase its loan under the Extended Fund Facility (EFF) to $8 billion, up from $3 billion. The first and second reviews under the program are set to be completed soon. “We are pleased to announce that the Egyptian authorities and the IMF team have reached a staff-level agreement on the economic policies needed to complete the first and second reviews of the EFF arrangement,” said IMF Mission chief to Egypt, Ivanna Vladkova Hollar. The deal, subject to approval by the IMF Executive Board,…
Egypt’s recent agreement with the UAE to develop the coastal zone Ras El-Hikma offers a promising solution to the country’s pressing challenges, particularly concerning its US dollar liquidity requirements. The deal, valued at $35 billion, will see Egypt receiving the amount in two installments over the next two months. As part of the agreement, Egypt will obtain 35% of the project’s revenues throughout its duration, with $11 billion from the UAE’s deposits at the Central Bank of Egypt (CBE) earmarked for project investments. In an interview with Business Monthly, Ali Metwally, an Economic Consultant at IBIS Consultancy, emphasized the critical…
Last year, Haleon, the renowned British consumer healthcare giant, marked its grand entrance into Egypt in June, placing a significant focus on consumer health post its split from GSK. In an exclusive interview with Mohamed Mostafa, the Country Manager of Haleon EG Limited, he delves into the company’s remarkable journey towards becoming the globe’s largest standalone healthcare enterprise. Mostafa passionately underscores the company’s ambitious goal of attaining 90% local manufacturing for its Egyptian operations. Noteworthy among Haleon’s esteemed brands are Advil, Centrum, Voltaren, and Otrivin, which have garnered widespread recognition and trust. The Q&A has been edited for length and…
Emirates NBD-Egypt has introduced a personal loan option tailored to finance the purchase of solar panels, empowering individuals to embrace clean energy solutions, according to a company statement in February. Green loans The loan offers coverage of up to 100% of the solar panel costs, ranging from EGP 100,000 to a maximum of EGP 1 million, with repayment options spanning a 7-year tenor and competitive interest rates. This initiative aligns with Egypt’s Sustainability Strategy and 2030 Vision, furthering the bank’s commitment to international sustainable development goals and promoting clean energy initiatives. “This loan reinforces our ongoing commitment to sustainability, as…