Egypt Independent: Economy-Main news http://www.egyptindependent.com//enhome_channel/Economy/rss.xml en Egypt's GASC buys 240,000 T French wheat, 60,000 T Russian wheat http://www.egyptindependent.com//node/2441613 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2013/11/19/481046/shutterstock_130958987.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p id="yui_3_9_1_1_1419102478595_1019">Egypt&#39;s state grain buyer, the General Authority for Supply Commodities (GASC), said on Saturday it had bought 300,000 tonnes of wheat from France and Russia in a tender for shipment on Jan. 21-31.</p><p>Egypt, the world&#39;s biggest importer of wheat, bought 240,000 tonnes of French wheat and 60,000 tonnes of Russian wheat, Mamdouh Abdel Fattah, GASC vice chairman said.</p><p>Of the total, GASC bought 60,000 tonnes of French wheat from Granit, 60,000 tonnes of French wheat from Glencore, 60,000 tonnes of French wheat from Lecureur and 60,000 tonnes of French wheat from Cargill.</p><p>GASC also bought 60,000 tonnes of Russian wheat from Union Company.</p><p id="yui_3_9_1_1_1419102478595_995">The wheat was purchased at an average price of $273.94 a tonne on a cost and freight basis, Abdel Fattah said.</p> Sat, 20 Dec 2014 19:10:00 +0000 Reuters 2441613 at http://www.egyptindependent.com sites/default/files/photo/2013/11/19/481046/shutterstock_130958987.jpg Minister: Fitch’s upgrade to Egypt’s credit rating helps attract investments http://www.egyptindependent.com//node/2441581 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/11/25/499612/2014-10-24t023444z_1255074414_gm1eaao0tbz01_rtrmadp_3_mideast-investment-egypt-financeminister.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>Finance Minister Hany Qadry Dimian considers Fitch Ratings&#39; decision to upgrade its evaluation of the Egyptian economy as an important positive step to boost investor confidence.<br /><br />The minister said that the move supports recent efforts by the government to save funds for its developmental plans and attract more investments in the coming period, especially since it is the first time to raise Egypt&rsquo;s credit rating following a series of devaluations over the past few years.<br /><br />Fitch Ratings had previously upgraded Egypt&#39;s long-term foreign and local currency Issuer Default Ratings (IDR) to &#39;B&#39; from &#39;B-&#39;. The outlooks are stable. Fitch has also upgraded the issue ratings on Egypt&#39;s senior unsecured foreign and local currency bonds to &#39;B&#39; from &#39;B-&#39;. The Country Ceiling has been upgraded to &#39;B&#39; from &#39;B-&#39; and the short-term foreign currency IDR is affirmed at &#39;B&#39;.<br /><br />Fitch attributed its new rating to the structural and financial reforms carried out by the government to enhance the economy.<br /><br />According to the minister, the upgrade came simultaneously with praise by several other international financing institutions as well as concluding measures over negotiations with the International Monetary Fund (IMF) during the past month. The minister said that the IMF delegation praised the Egyptian economy and its ability to achieve the required goals over the medium term. He added that such initiatives will bring the highest benefit to the economy during the economic summit slated for March in Sharm el-Sheikh.<br /><br />Fitch&rsquo;s decision was based on several economic and political developments such as the&nbsp; government&rsquo;s adopted strategy to rationalize energy subsidies and widen the tax base. This has led to improvements in the budget&rsquo;s total deficit, as Fitch expected a deficit of 10.2 percent of GDP in fiscal year 2014-2015, compared to 12.8 percent in FY2013-2014.<br /><br />Fitch also expects the economy to achieve a growth rate for the ongoing fiscal year of 4.2 percent which is higher than the government&rsquo;s expected rate of 3.8 percent marking an average of 2 percent increase in growth rates over the past three years.<br /><br />Fitch also indicated political stability since President Abdel Fattah al-Sisi came to office, which reflects the people&rsquo;s desire to achieve stability.<br /><br />However, the institution highlighted risks that endanger Egypt&#39;s economy, saying they might negatively affect its credit rating. It warned against the government not continuing the required structural measures to the economy, deterioration of the financial situation and the balance of payments to foreign companies. They also mentioned political turmoil has a potential deterrent for the recovery of the economy.<br /><br />The raise in Egypt&rsquo;s credit rating is the first since Fitch issued its first credit rating for Egypt in 1997. It has reduced its grading for Egypt since 2011 five times in row.<br />&nbsp;</p> Sat, 20 Dec 2014 10:42:00 +0000 Egypt Independent 2441581 at http://www.egyptindependent.com sites/default/files/photo/2014/11/25/499612/2014-10-24t023444z_1255074414_gm1eaao0tbz01_rtrmadp_3_mideast-investment-egypt-financeminister.jpg Traders: Egypt's EGAS has tendered for at least 48 LNG cargoes http://www.egyptindependent.com//node/2441552 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2013/09/08/92/gas.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><p>&nbsp;Egypt&#39;s state-owned gas company EGAS has tendered to buy at least 48 cargoes of liquefied natural gas (LNG) for delivery in 2015/16, three traders said.</p><p>A senior official at EGAS confirmed that there was a tender for multiple LNG cargoes during Egypt&#39;s 2015/16 financial year, which runs from July 2015 to June 2016, but declined to say how many cargoes.</p><p>The official told Reuters that the result of the tender was due by the end of this month and that seven companies had bid, adding that the contract would be split among multiple companies.</p><p>Egypt finalised a long-delayed deal last month with Norway&#39;s Hoegh LNG for a floating storage and regasification unit that will allow the country to begin importing LNG.</p><p>After repeated delays, it is currently expected to launch at the end of March, in time to receive the tendered cargoes.</p><p>Egypt has struggled with soaring energy bills caused by high subsidies it provides on fuel for its population of 86 million. The subsidies have turned Egypt from a net energy exporter into a net importer over the last few years.</p><p>Egypt can export LNG but cannot currently import it.</p><p>&quot;The tender has been postponed and re-issued a couple of times,&quot; a trader said.</p><p>&quot;There&#39;s also the question of if they have the dollars to finance it.&quot;</p><p>A second trader said that sellers were likely to be cautious due to Egypt&#39;s credit history.</p> Fri, 19 Dec 2014 12:57:00 +0000 Reuters 2441552 at http://www.egyptindependent.com sites/default/files/photo/2013/09/08/92/gas.jpg Egypt's market regains $1.58 bn of previous 2-day losses, EGX30 Index soars 3.4% http://www.egyptindependent.com//node/2441517 <img src="http://www.egyptindependent.com///sites/default/files/imagecache/media_thumbnail/photo/2014/06/19/484151/217788_0.jpg" alt="" title="" class="imagecache imagecache-media_thumbnail" width="152" height="114" /><div>Egyptian shares have recovered during Thursday&#39;s session part of their large losses from the previous two days, following the Arab markets rebound, dealers said.</div><div>&nbsp;</div><div>The EGX30 Index soared 3.39 percent to record 8,399.89 points. Meanwhile, the EGX70 and the EGX100 closed on a strong a positive note, up 2.01 percent and 2.3 percent respectively.</div><div>&nbsp;</div><div>EGX market capital gained LE11.3 billion (US$1.58 billion) to hit LE476.01 billion compared to LE464.7 billion on Wednesday.</div><div>&nbsp;</div><div>The market had lost over $3.8 billion in the space of the last two days after oil prices plunged significantly.</div><div>&nbsp;</div><div>Stock markets in Saudi Arabia and the United Arab Emirates soared on Thursday after the price of oil rebounded and the Riyadh government eased investors&#39; fears by saying it would continue spending heavily on economic development, according to Reuters.</div> Thu, 18 Dec 2014 16:11:00 +0000 Egypt Independent 2441517 at http://www.egyptindependent.com sites/default/files/photo/2014/06/19/484151/217788_0.jpg