Arab Monetary Fund in US$65 million loan to Egypt
Source: BI-ME with Reuters , Author: Posted by BI-ME staff
Posted: Sun June 17, 2012 12:48 pm

EGYPT. The Arab Monetary Fund (AMF) said on Sunday it was arranging a US$65 million credit facility for Egypt to help the country trade with other Arab states, as political instability threatens Cairo with a balance of payments crisis.

The credit line will be extended through a trade financing programme run by the AMF, central banks and other financial institutions in the region, said the AMF, a multilateral lending body with 22 member countries.

Egypt's balance of payments deficit ballooned to $11 billion in the first nine months of its 2011-2012 fiscal year, more than double year-ago levels, as inflows of capital largely dried up.

Cairo is seeking aid from a wide range of international donors; Egyptian officials said in February they had asked for $500 million each from the AMF and the African Development Bank, $1 billion from the World Bank and $660 million from the European Union. But aid has generally been slow to arrive, partly because donors have been cautious about lending while Egypt's political outlook remains unclear.

Farouk el-Okdah, Egypt's central bank governor, said at a meeting of AMF and regional central bank officials in Abu Dhabi on Sunday that the capital and revenues of Egyptian commercial banks were strong. "We are in a better position now," he said without giving figures

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: October 20, 2014
UAE. "The proposed Amanat IPO is strong evidence of continuing interest in regional and international interest in IPOs in the UAE and the GCC more widely, despite the recent softening in equity markets globally."
date:Posted: October 20, 2014
SAUDI ARABIA. Food and rental inflation accelerate; Jadwa revises its estimates for average annual inflation to 2.8% for 2014, slightly down from 2.9%.
date:Posted: October 20, 2014
UAE. The strengthening economic fundamentals, the amelioration in the risk profile of major regional countries, the governmental implementation of key business-friendly reforms are all stimulating factors for deal generation activity, according to a Bureau van Dijk and MENA Research Partners report.
UAE. The strengthening economic fundamentals, the amelioration in the risk profile of major regional countries, the governmental implementation of key business-friendly reforms are all stimulating factors for deal generation activity, according to a Bureau van Dijk and MENA Research Partners report.
dhgate