Global Institutions Commit $5.5 Billion in Loans for Egypt: Fitch Ratings

Ahram Online , Sunday 5 Nov 2023

Egypt is slated to secure a total of $5.5 billion in loans from diverse international partners and institutions, according to a recent report by the global rating agency Fitch.

US dollar bills. Ahram Gate.
US dollar bills. Ahram Gate.


Fitch said the Egyptian government is in the advanced stages of finalizing a $1.5 billion financing package, bolstered by guarantees from international institutions.

Furthermore, Fitch asserts that Egypt is strongly positioned to acquire an additional $4 billion in direct financing from official partners, including the International Monetary Fund (IMF).

The report emphasizes the potential issuance of Sukuk in Egypt, which could attract investments from Gulf Cooperation Council (GCC) investors during the fiscal year 2023/24.

These strategic financial manoeuvres align with Egypt's overarching strategy to diversify its financial resources and attract new investor profiles.

In support of this initiative, Egypt recently issued Panda bonds in the Chinese market, valued at $500 million and backed by guarantees from the African Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

Additionally, the government provided Samurai bonds of the same value, with assurances from the Africa Finance Corporation (AFC).

Egypt's Minister of Finance, Mohamed Maait, highlighted that the government has identified sources for $4 billion in external financing by the end of FY 2023/24, as per an official statement on Saturday.

According to Maait, Egypt can reliably secure approximately $5 billion annually in loans, on favourable terms from multilateral development banks.

Despite facing significant global economic challenges over the past two years, Maait highlighted Egypt's successful fulfilment of its foreign obligations, with substantial payments totalling $52 billion.

The influx of loans and investments from international partners not only substantially boosts Egypt's economy but also signals confidence in the government's economic policies and ongoing reforms.

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