Egitto 6.875% 30.04.2040 ISIN XS0505478684

UPDATE 1-Egypt to use daylight saving time again in a bid to save energy
01/03/2023 16:04 - RSF
(Adds detail about parliament approval)
CAIRO, March 1 (Reuters) - Egypt will again use daylight saving time this summer after a seven-year gap, the cabinet said on Wednesday, the latest in a series of government efforts to save energy.

Last year the Egyptian government announced a raft of rules to reduce government and commercial energy use so that the country could export more natural gas, a key foreign currency earner.

Changing the clocks "comes in light of global circumstances and economic shifts, as the government strives to rationalise energy usage," the cabinet said while announcing the draft law that is expected to be approved by the country's parliament.

The practice, which has been introduced and abolished at varying points in Egypt's history, was last used in 2014, and is seen by some as a relic of the country's previous regimes.

Clocks will be brought forward one hour beginning on the last Friday of April, with the change ending on the last Thursday in October every year, according to the cabinet.

Egypt is experiencing an economic crisis after the fallout from the Ukraine conflict aggravated a foreign currency shortage.

(Reporting by Momen Saeed Atallah; Writing by Nafisa Eltahir; Editing by Shounak Dasgupta and Mark Porter)
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Egypt's net foreign assets decline by $1.7 billion in January
01/03/2023 14:45 - RSF
CAIRO, March 1 (Reuters) - Egypt's net foreign assets (NFAs) declined by 160.2 billion Egyptian pounds in January, likely due to debts maturing and importers clearing backlogs from ports.

NFAs deteriorated to a negative 654.43 billion Egyptian pounds from a negative 494.3 billion at end-December, central bank data showed.

This works out to a decline of $1.70 billion using end-of-month central bank exchange rates, according to Reuters calculations. The central bank allowed the Egyptian pound to depreciate by nearly 24% in January.

"NFAs came under pressure possibly in part because of external debt maturities and with the import backlog being cleared from customs ahead of Ramadan," said Allen Sandeep of Naeem Brokerage.

The falling NFAs reversed improvements made over the previous two months. In December, Egypt's NFA deficit shrank by $2.06 billion following a 14.5% currency devaluation in late October, part of a financing programme agreed with the International Monetary Fund.

Before the October depreciation, the central bank had been relying on NFAs, which represent banking system assets owed by non-residents minus liabilities, to help support the currency.

NFAs include foreign assets held by the central bank.

Russia's invasion of Ukraine in February last year sparked a currency crisis that led Egypt to begin negotiating with the International Monetary Fund for a financial assistance package.

NFAs stood at a positive 248 billion pounds in September 2021, before the decline began.

Changes in the amount of NFAs represent net transactions of the banking system with the foreign sector, including those of the central bank, according to the bank.

(Reporting by Patrick Werr; Editing by Andrea Ricci)
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UPDATE 2-Egypt raises gasoline prices in quarterly review
Oggi 13:08 - RSF
(Adds background, analyst quote)
CAIRO, March 2 (Reuters) - Egypt raised domestic gasoline prices early on Thursday, bringing them more in line with global levels but risking further public discontent after a year of rising inflation, a weakening currency and a series of austerity measures.

The North African nation reaffirmed its commitment to push through fuel price increases to receive a financial support package agreed with the International Monetary Fund (IMF) in December.

Egypt had been bringing fuel prices closer to international levels only for a series of currency devaluations to undermine the process over the past year. The Egyptian pound has fallen by nearly 50% against the dollar over the past 12 months.

The country's fuel pricing committee left the diesel price unchanged, the petroleum ministry said in a statement, but raised the price of 80-octane petrol by 0.75 Egyptian pounds, 92-octane petrol by 1 pound and 95-octane petrol by 0.75 pounds to 8.75 Egyptian pounds ($0.29), 10.25 and 11.50 per litre, respectively.

The diesel price was kept at 7.25 pounds per litre.

Diesel is now about 50% lower than international prices and 95-octane petrol about 40% lower, said Allen Sandeep of Naeem Brokerage.

EFG Hermes economist Mohamed Abu Basha estimates that the increases could increase headline inflation by 0.2 to 0.3 percentage points. Inflation hit a five-year high of 25.8% in January.

"Gasoline prices were raised, but diesel unchanged. So it should not have a big impact on inflation," Abu Basha said.

A rise in the prices of global commodities including wheat and oil after Russia's invasion of Ukraine last year added to financial pressures on Egypt, driving it to seek a rescue package from the IMF.

In July 2022 the government announced a rare increase to the price of diesel but said it was still subsidising the fuel at the rate of about 55 billion Egyptian pounds per year.

Pricing of fuel has been set under quarterly reviews since 2019, taking account of global markets and the exchange rate, in line with previous commitments to the IMF.

($1 = 30.5800 Egyptian pounds)

(Reporting by Hatem Maher and Ahmed Tolba Writing by Aidan Lewis and Patrick Werr Editing by Kim Coghill and David Goodman)
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How deep are Egypt's economic troubles?
Oggi 14:49 - RSF
CAIRO, March 3 (Reuters) - Egypt's economy has come under severe pressure over the past year, with the Egyptian pound tumbling, foreign currency drying up, and inflation soaring.

WHAT CAUSED EGYPT'S ECONOMIC WOES?
Some of the causes date back decades, such as failed industrial development and export policies that created a persistent trade deficit.

An over-valued currency, weak property rights and institutions, and an overbearing state and military have deterred investment and competition. Subsidies - though now reduced - have long drained the budget.

Foreign investment outside the oil and gas sector has been paltry, leaving receipts from remittances, Suez Canal transit fees and tourism to play a crucial role.

President Abdel Fattah al-Sisi often blames turmoil following a 2011 uprising and rapid population growth -- the World Bank put annual population growth at 1.7% in 2021 -- for the country's economic struggles. Since 2020, authorities have pointed to external shocks including the COVID-19 pandemic and the war in Ukraine.

But analysts also cite policy missteps including costly defence of the Egyptian pound, a dependence on fickle foreign portfolio investments, and a failure to carry out structural reforms.

HOW BAD HAVE THINGS BECOME?
The economy has been growing steadily, but the impact of that growth - forecast at 4% to 5% this year - is blunted by the population surge. Many Egyptians say their standard of living has been eroded.

Since March 2022, Egypt's pound has depreciated by nearly 50% against the dollar. An acute dollar shortage has suppressed imports and caused a backlog of goods at ports, with a knock-on effect on local industry.

Annual headline inflation surged to 25.8% in January, the highest level for five years, according to official data. Prices for many staple foods have risen much faster.

Official data classified about 30% of the population as poor before COVID-19 struck, and analysts say numbers have risen since then. As many as 60% of Egypt's 104 million citizens are estimated to be below, or close to the poverty line.

Unemployment has fallen to just over 7%, but labour market participation also dropped steadily in the decade to 2020. Parts of the public education system are in a state of collapse. Many graduates with the opportunity to do so seek work abroad.


WHAT SUPPORT CAN EGYPT DRAW ON?
Both Western and Gulf states have broadly viewed Egypt under Sisi as a lynchpin of security in a volatile region.

As the fallout from the Ukraine war delivered Egypt its latest economic shock, Cairo received billions in deposits and investments from Gulf allies including Saudi Arabia and the United Arab Emirates.

But although Gulf states have also rolled over existing deposits they have toughened conditions for injecting new money, increasingly seeking investments that provide a return.

In March 2022, the government said it had begun talks for its latest financial package from the IMF, eventually confirming a $3 billion loan linked to reforms that include reducing the footprint of the state and the military in the economy.

IS EGYPT'S DEBT SUSTAINABLE?
Egypt's debt burden has been climbing, though analysts differ over how much of a risk this presents.

The government forecasts that by the end of the financial year in June debt will stand at 93% of GDP, a measure that has risen over the past few years and which it wants to reduce to 75% by 2026.

A heavy debt burden, rising interest rates and a weakening currency have raised the cost of servicing debt. Interest payments on debt are forecast to swallow more than 45% of all revenue in the financial year that ends in June.

Substantial principle and interest payments on foreign debt contribute to a large external financing gap - the difference between supply of and demand for foreign currency financing.

Egypt must repay the IMF alone $11.4 billion over the next three years.

HOW HAS THE MONEY BEEN SPENT?
Beyond outlays on regular costs, including public salaries and services, Egypt has spent heavily on infrastructure under Sisi.

This includes housing, a number of new cities, and rapid road building. The most prominent mega-project is a new capital in the desert east of Cairo, which one official said the state was trying to pay the $58 billion cost of through land sales and investments.

Egypt's arms imports also surged over the past decade, making it the third-largest importer globally, according to the Stockholm International Peace Research Institute.

Officials say they have upped spending on social programmes for the poor, including a cash handout scheme that covers five million families, though critics say the welfare is insufficient to protect living standards.

(Writing by Aidan Lewis; Editing by Sharon Singleton)
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Egitto: Fondo sovrano, attesi 4 miliardi di investimenti dai Paesi del Golfo (3)
Il Cairo, 06 mar 13:33 - (Agenzia Nova) - Come emerso dai dati della Borsa egiziana del gennaio scorso, i fondi d’investimento dei Paesi del Golfo sono intervenuti per arginare il calo del valore della sterlina egiziana rispetto al dollaro acquistando buoni del tesoro egiziani, per un valore di 7,18 miliardi di sterline (circa 250 milioni di dollari). I fondi hanno salvato la sterlina da un crollo storico, dopo aver raggiunto quota 32 per un dollaro, vendendo dollari per acquistare obbligazioni emesse nella valuta locale egiziana. I fondi hanno acquistato obbligazioni con scadenza 20 ottobre 2025. Nell’agosto dello scorso anno, la Banca centrale egiziana aveva riferito che i depositi dei Paesi del Golfo nel primo trimestre del 2022 erano stati pari a circa 13 miliardi di dollari, oltre a quelli esistenti di 15 miliardi di dollari, portando il totale a quasi 28 miliardi, pari al 75,5 per cento delle riserve valutarie alla fine di marzo 2022. I depositi del Golfo sono aumentati durante il primo trimestre del 2022, a seguito dell'ottenimento da parte dell'Egitto di cinque miliardi di dollari dagli Emirati Arabi Uniti, cinque miliardi di dollari dall'Arabia Saudita e tre miliardi di dollari dal Qatar, sotto forma di depositi a breve termine. (Cae)
© Agenzia Nova - Riproduzione riservata
 
Egitto: Fondo sovrano, attesi 4 miliardi di investimenti dai Paesi del Golfo (2)
Il Cairo, 06 mar 13:33 - (Agenzia Nova)- Circa il piano del governo egiziano, questo prevede di quotare 32 società durante l'anno in corso attraverso "offerte iniziali in borsa... (Cae)
© Agenzia Nova - Riproduzione riservata
 
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