Egypt's long-term currency debt downgraded to 'BB-'
Source: BI-ME with Bloomberg , Author: Posted by BI-ME staff
Posted: Fri December 30, 2011 4:42 pm

INTERNATIONAL. Egypt's long-term foreign currency debt was downgraded by Fitch Ratings, which pointed to a decline in central bank reserves and uncertainty over possible International Monetary Fund support.

Fitch lowered the rating to BB-from BB with a negative outlook. The long-term local currency rating was cut to BB from BB+, it said in an e-mailed report today.

Egyptian central bank reserves fell 44% in 2011 as the central bank sought to keep the local currency stable with investment and tourism falling. Reserves fell to about US$20 billion in November, from US$36 billion at the end of 2010, Fitch said today.

Policy makers in the north African country are trying to manage unrest even as borrowing costs rise after the popular revolt that ousted President Hosni Mubarak in February.

“Although reserves remain above three months of current external payments, the pace of decline is a concern,” Fitch analyst Richard Fox wrote in the report.

Alternative sources of funding such as an IMF program have “been promised but await definitive decisions by the government.”

Egyptian public finances have also weakened, Fitch said. Government debt is likely to rise to 80% of gross domestic product in 2012 and this year’s budget deficit will exceed the goal of 8.6% of GDP, it said.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: April 23, 2014
UAE. Managing an internationally mobile workforce can be challenging, particularly as home country and host country laws can be vastly different; Legal compliance with local laws may mean that it is not possible to impose global policies on the workforce.
date:Posted: April 22, 2014
UAE. "Adapt to Survive", a global study by PwC, commissioned by LinkedIn, reveals the economic impact of not having the right people in the right jobs.
date:Posted: April 22, 2014
KUWAIT. For much of the past decade, international companies operating in the major projects sector have found Kuwait a challenging market in which to do business. However, there are good reasons to believe this year will be different.
UAE. Managing an internationally mobile workforce can be challenging, particularly as home country and host country laws can be vastly different; Legal compliance with local laws may mean that it is not possible to impose global policies on the workforce.
dhgate