Egypt Independent: Economy-Main news http://www.egyptindependent.com//enhome_channel/Economy/rss.xml en Pressure on Qatar to extend maturity of $2.5 bn in bonds owed ​​by Egypt http://www.egyptindependent.com//node/2438712 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/06/29/484151/qatari_emir.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div><span style="font-size: 14px;">A Finance Ministry source said Gulf states are putting pressure on Qatar to extend the maturity of bonds worth US$2.5 billion owed ​​by Egypt in November, pointing out that in case this pressure fails, the repayment would be taken from the cash reserves.&nbsp;</span></div><div>&nbsp;</div><div>Qatar had subscribed to the bonds to help Egypt under deposed president Mohamed Morsy.</div><div>&nbsp;</div><div>The source said Egypt received a total of $5 billion from Qatar under Morsy in the form of bonds and Central Bank deposits.&nbsp;</div><div>&nbsp;</div><div>Qatar had asked to recover its Central Bank deposits after the overthrow of Morsy, while Egypt said it was ready to repay the remaining amount ($500 million) in installments in October and November.</div><div>&nbsp;</div><div>Qatar had been the biggest supporter of Morsy and rejected his overthrow by current president Abdel Fattah al-Sisi upon mass protests demanding his removal.</div><div>&nbsp;</div><div><em>Edited translation from Al-Masry Al-Youm</em></div><div>&nbsp;</div> Wed, 01 Oct 2014 13:05:00 +0000 Al-Masry Al-Youm 2438712 at http://www.egyptindependent.com sites/default/files/photo/2014/06/29/484151/qatari_emir.jpg Petroleum Authority signs LE10 bn loan to repay foreign companies http://www.egyptindependent.com//node/2438710 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/09/17/484151/195349_0.png" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p><span style="font-size: 14px; line-height: normal;">Five banks on Wednesday granted the Petroleum Authority the biggest loan in the history of the Egyptian banking system worth LE10 billion to repay its debts to foreign companies and meet consumer needs.</span></p><div>The Petroleum Authority had announced earlier that the alliance, led by the National Bank of Egypt, is financing the biggest loan it has received since 25 January 2011.</div><div>&nbsp;</div><div>The authority is racing to get a loan in Egyptian pounds or US dollars in order to pay some US$6 billion in debts to foreign oil companies.</div><div>&nbsp;</div><div>The National Bank of Egypt is granting LE4 billion, the Commercial International Bank 1.65 billion, the Arab African International Bank LE1.65 billion, Banque Misr LE1.35 billion and Qatar National Bank (previously Societe Generale) LE1.35 billion.</div><div>&nbsp;</div><div>Sources said such a loan takes one month to 45 days to complete, adding that the Petroleum Authority did not say if it would deposit the money directly in the accounts of those companies.</div><div>&nbsp;</div><div>The chairmen of the alliance are signing the loan agreement with the Petroleum Authority on Wednesday to deposit the loan in its account.</div><div>&nbsp;</div><div><em>Edited translation from Al-Masry Al-Youm</em></div><div>&nbsp;</div> Wed, 01 Oct 2014 12:33:00 +0000 Al-Masry Al-Youm 2438710 at http://www.egyptindependent.com sites/default/files/photo/2014/09/17/484151/195349_0.png Agadir Agreement encourages Egypt trade exchange to Morocco, Jordan and Tunisia by 46% http://www.egyptindependent.com//node/2438713 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2012/09/03/80371/22.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>The Ministry of Trade and Industry has said that the Agadir Agreement had allowed Egypt to increase by 46 percent the volume of its trade exchange to the signatory countries.</div><div>&nbsp;</div><div>Said Abdullah, head of the sectors of trade agreements and Foreign Trade announced that the Agadir Agreement increased the volume of trade exchange between Egypt and Morocco Tunisia, and Jordan to about US$270 million in 2013 compared to $126 million during the year 2011.</div><div>&nbsp;</div><div>The agreement, he added, has also allowed the country to diversify exports to these countries&rsquo; markets.</div><div>&nbsp;</div><div>Said noted that the Agadir Agreement is not only a free trade agreement but also an accord that achieves the industrial and economic complementarity between the four signatory countries and increases their export capacity to the European Union.</div><div>&nbsp;</div><div>The Agadir Agreement is a free trade agreement between four Arab countries: Egypt, Jordan, Morocco and Tunisia.</div><div>&nbsp;</div><div>Named after the Moroccan city of Agadir, where the process to set up the pact was launched in May 2001, the agreement was signed in Rabat in February 2004 and came into force in March 2007.</div><div>&nbsp;</div><div>It aims at boosting trade between its member states, fostering economic development and integration through the implementation of rules of origin, and attracting EU and international Foreign Direct Investments (FDI).</div> Wed, 01 Oct 2014 10:21:00 +0000 Ibrahim Alsahary 2438713 at http://www.egyptindependent.com sites/default/files/photo/2012/09/03/80371/22.jpg Egypt borrows a record LE216 billion from local market in 1st quarter http://www.egyptindependent.com//node/2438697 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/05/15/484151/swr_hn_qdr.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>Egypt&rsquo;s domestic debt sales have grown by an annual 8.2 percent to a record LE216.3 billion (US$30.3 billion) in the first quarter of the 2014/2015 fiscal year, compared to LE200 billion for the same period the previous year, according to the Ministry of Finance&rsquo;s domestic debt issuance calendar.</div><div>&nbsp;</div><div>The official Finance Ministry data shows the government borrowed LE819.1 billion ($114.6 billion) during fiscal year 2013/2014.</div><div>&nbsp;</div><div>The government borrows locally by selling bonds and treasury bills to the banking sector, to ensure the availability of financial liquidity.</div><div>&nbsp;</div><div>Average yield for one-year treasury bills now stands at 12.41 per cent at an auction on Monday.</div><div>&nbsp;</div><div>Meanwhile, Egypt&#39;s gross domestic debt recorded LE1.7 trillion (83.7 percent of GDP) by end of June 2014, compared to LE1.4 trillion (82.4 percent of GDP) by end of June 2013 according to the Financial Monthly Bulletin in August 2014.</div><div>&nbsp;</div><div>Additonally, total government debt (domestic and external) reached LE1.91 trillion (93.9 percent of GDP) at end of June 2014, compared to LE 1.64 trillion (94 percent of GDP) at end of June 2013, the bulletin showed.</div><div>&nbsp;</div><div>External debt recorded $46.1 billion by the end of June 2014 compared to $43.2 billion by the end of June 2013, most of the increase represented aid from the Gulf Countries with concessional and preferential terms, the Bulletin explained.</div><div>&nbsp;</div><div>Financial expert Fathy Issa said that the growth in domestic treasury bill offers was worrying, not to mention the surge in yields which will put more pressure on Egypt&rsquo;s budget deficit. &ldquo;Debt service already takes up more than 25 percent of total expenditure,&quot; he added.</div><div>&nbsp;</div><div>As a result, Issa said the deficit target in the current fiscal year&rsquo;s budget is estimated to reach LE240 billion, which represents 10 percent of GDP, and the Government&rsquo;s expansive fiscal policy will further increase this deficit.</div><div>&nbsp;</div><div>The Ministry of Finance, however, expects that the total government debt (domestic and external) will reach a sum of LE 2.2 trillion at the end of FY14/15 (about 91.5 percent of GDP, decreasing from 93.8 percent of GDP for FY12/13).</div> Wed, 01 Oct 2014 08:57:00 +0000 Ibrahim Alsahary 2438697 at http://www.egyptindependent.com sites/default/files/photo/2014/05/15/484151/swr_hn_qdr.jpg