Latest news with #PatrickWerr
Zawya
25-06-2025
- Business
- Zawya
Egypt sells $1bln in 3-year sukuk to Kuwait Finance House
Egypt has sold $1 billion in three-year Islamic bonds, or sukuk, to Kuwait Finance House, an Islamic bank, Egypt's finance ministry said on Wednesday. The sukuk, which carried an annual coupon of 7.875%, was the second such instrument issued since the government put a $5 billion sukuk programme in place. The first sukuk, for $1.5 billion, was sold in February 2023 with an 11% yield. Egypt's finance minister said in April that Egypt would sell $2 billion in sukuk in 2025. The new sukuk will help repay a $1.5 billion, 10-year Eurobond which, according to central bank data, matures this month. The Egyptian government had been struggling to find foreign currency even before the latest fighting between Israel and Iran. The government has been forced in recent years to import increasing amounts of expensive liquid natural gas as domestic production diminishes and local consumption increases. The fighting prompted Israel, a major gas supplier to Egypt, cut off natural gas deliveries for about two weeks, although it was due to resume deliveries on Wednesday. The fighting may also slow the growth of tourism, which earned Egypt $8.7 billion in the second half of 2024, and further cut into Suez Canal revenue, which has been the victim of attacks on shipping by Yemen's Houthis trying to shut off Israel-bound cargo. (Reporting by Tala Ramadan and Nafisa Eltahir; Writing by Patrick Werr; Editing by Alison Williams and Alex Richardson)
Zawya
04-06-2025
- Business
- Zawya
Egypt's net foreign assets retreat in April after March jump
Egypt's net foreign assets (NFAs) fell by $1.5 billion in April, central bank data showed on Wednesday, retreating from March, when the approval of the fourth review of the country's IMF programme sparked a jump. NFAs slid to the equivalent of $13.54 billion, from $15.08 billion at the end of March, according to Reuters calculations based on official central bank currency exchange rates. In March, NFAs jumped by $4.9 billion after the International Monetary Fund approved the disbursement to Egypt of $1.2 billion after completing its review of the country's $8 billion economic reform programme. The IMF also approved a request for a $1.3 billion arrangement under the IMF's resilience and sustainability facility. The approvals led to an inflow of foreign investment in Egyptian pound treasury bills, bankers said. Egypt had been using foreign assets, which include assets held by both the central bank and commercial banks, to help prop up its currency since as long ago as September 2021. Net foreign assets turned negative in February 2022 and only returned to positive territory in May last year. Foreign assets increased in April at both the central bank and commercial banks, while foreign liabilities fell at both as well. (Reporting by Patrick Werr; Editing by Alex Richardson)
Zawya
06-05-2025
- Business
- Zawya
IMF to begin 5th review of Egypt's economic programme this week
CAIRO: The International Monetary Fund will begin the fifth review of Egypt's $8 billion economic reform programme, with a team scheduled to arrive in Cairo this week, the IMF said in a statement on Monday. The IMF board approved the fourth review on March 11, unlocking a disbursement of $1.2 billion in a 46-month IMF loan programme first approved in 2022 and later expanded following the outbreak of fighting in Gaza. Egypt had been suffering from a severe shortage of foreign currency and inflation that peaked at 38% in September 2023. The IMF has yet to publish a staff report from the fourth review, saying the Egyptian authorities needed more time to consider its publication. The IMF team is expected to begin its visit on Tuesday and remain in Cairo until May 16, a person familiar with the mission said. The IMF board in March also approved an additional $1.3 billion in financing under its Resilience and Sustainability Fund. In the fourth review, the IMF board approved a request by Egypt to waive its primary budget surplus target. The surplus was expected to reach 4% of GDP in the fiscal year that will begin on July 1, 0.5% less than Egypt had committed to earlier in the programme. (Reporting by Patrick Werr, Writing by Menna Alaa El-Din, Editing by Chris Reese and David Gregorio)
Zawya
05-05-2025
- Business
- Zawya
Egypt's net foreign assets jump in March after IMF review approval
Egypt's net foreign assets jumped by $4.9 billion in March, central bank data showed, apparently boosted by the approval of the fourth review of the country's IMF programme. Net foreign assets climbed to the equivalent of $15.08 billion from $10.18 billion at the end of February, according to Reuters calculations based on official central bank currency exchange rates. The International Monetary Fund in early March approved the disbursement to Egypt of $1.2 billion after completing its review of the country's $8 billion economic reform programme. It also approved a request for a $1.3 billion arrangement under the IMF's resilience and sustainability facility. Foreign investors were significant purchasers of Egyptian pound treasury bills after the approval and as one-year bills acquired after the March 2024 IMF agreement matured, two bankers said. Egypt had been using foreign assets, which include assets held by both the central bank and commercial banks, to help prop up its currency since as long ago as September 2021. Net foreign assets turned negative in February 2022 and only returned to positive territory in May last year. Foreign assets increased in February at both the central bank and commercial banks, while foreign liabilities rose at the central bank but declined at commercial banks. (Reporting by Patrick Werr Editing by Gareth Jones)
Zawya
05-05-2025
- Business
- Zawya
Egypt's MNT-Halan sells $50mln in local corporate bonds
Egyptian microfinance lending and payments company MNT-Halan sold 2.5 billion Egyptian pounds ($49.4 million) in corporate bonds to finance further growth of its Egyptian loan book, it said in a statement on Monday. The bonds were sold to institutional lenders, the company added. MNT-Halan, Egypt's first unicorn, or privately held venture capital company worth more than $1 billion, expanded outside Egypt last year with the purchase of Turkish micro-leasing company Tam Finans. The company says it has disbursed more than $11 billion in loans both inside and outside of Egypt. ($1 = 50.6300 Egyptian pounds) (Reporting by Patrick Werr Editing by Tomasz Janowski)
