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: August 24, 2016
UAE. 71% of respondents think Brexit will not impact Dubai's competitiveness as a global financial centre.
date:Posted: August 24, 2016
INTERNATIONAL. With disruptive technologies changing the way people move around, new EY report recommends governments look to citizen behaviour as the starting point for developing sustainable transport policy.
date:Posted: August 24, 2016
UAE. 92% of polled GCC SMEs already on social media; Facebook, Twitter and LinkedIn driving unprecedented customer engagement for Arab SMEs, according to new Orient Planet Research report.
INTERNATIONAL. With disruptive technologies changing the way people move around, new EY report recommends governments look to citizen behaviour as the starting point for developing sustainable transport policy.
dhgate
cheap wedding dresses on Ca-Dress.com