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: October 29, 2014
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
date:Posted: October 29, 2014
UAE. Significant increase in inflows of private capital into UAE in 2014; UAE seen as hub between Africa and Asia; Political stability remains a major factor driving flows; UAE clear winner in the region, as other GCC countries see net outflows of private capital.
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INTERNATIONAL. Foreign policy is what a president wishes would happen; foreign affairs are what actually happen; the problem that Obama has, which has crippled his foreign policy, is that his principles have not been defined with enough rigor to provide definitive guidance in a crisis.
UAE. Total wealth in the GCC stood at US$ 1.7 tillion in 2014, up 4.75% from 2013; Total wealth in Saudi Arabia and UAE grew by 5%; Global household wealth up 8.3% to US$263 trillion, driven by the US and Europe, according to Credit Suisse Research Institute.
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