further saudi arabian assistance to egypt
TRANSCRIPT
Thursday17th Dec. 2015
Issue # 48
THE WEEKLY
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The King of Saudi Arabia, Salman Bin Abdel Aziz, ordered the increase of Saudi Arabian investments in Egypt to exceed USD8 billion. The assistance might include buying Egypt’s local debt as opposed to depositing cash in the Central Bank.
The King also ordered his government to meet Egypt’s needs of petroleum products throughout the next five years.
The announcement came after a meeting between the Egyptian Prime Minister Sherif Ismaeil and the Saudi Deputy Crown, Prince Mohammed Bin Salman.
ADB Approved USD1.5 Billion Loan To EgyptOil Subsidies’ Cutting Plan RevisedCBE Held Exceptional Dollar AuctionThe President Approved Takaful & Karama Project
IN THIS ISSUE...
A WORLD OF REAL POSSIBILITIES
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The President Inaugurated Desert Reclamation Project
ASSISTANCE TO EGYPT
FURTHER SAUDI ARABIAN
“We expect this support to be in the form of loans at favorable terms as an extension of deals that have been signed over the past 12-18 months”
“An agreement will be reached during the coming period with the Saudi side on the mechanism to implement the announcement to fulfill Egypt’s needs from oil during the next five years”
EFG Hermes ResearchMENA Morning Round Up16th December 2015
Tarek Al-MolaPetroleum MinisterAl Araby Al Jaded16th December 2015
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The Minister Of International Cooperation Sahar Nasr announced that the African Development Bank has approved a USD1.5 billion loan to Egypt to be granted over 3 years, where the first tranche worth USD500 million will be disbursed within days and directed to support government’s economic development program and national projects.
Prime Minister Sherif Ismaeil stated that the government is targeting decreasing oil and petroleum products subsidies by only 30% of its value in 2014 over a period of five years, instead of the previous government’s decision to fully eliminate this subsidy throughout the same period.
The Central Bank Of Egypt sold between USD750 million and USD1 billion in an exceptional dollar auction last Sunday. This move is the most recent in a series of measures aimed at ending a foreign exchange shortage.
“We respect the previous government’s decisions and are committed to them, but there are changes we need to adhere to in the case of oil product subsidies, such as global energy prices and new discoveries”
“The Dollars sold were directed to smaller importers with needs of less than USD750 thousand, and prioritized importers of foodstuffs, medicine and raw materials”
Moody’s StatementMubasher.Info8th December 2015
Mohamed El-Seweidy Head Of The Egyptian Federation Of Industries Egypt Independent15th December 2015
President Abdel Fattah Al-Sisi issued a decree approving a loan worth USD400 million from the International Bank For Reconstruction And Development to support the Karama (dignity) and Takaful (solidarity) social schemes aiming at benefiting up to 1.5 million Egyptian families, where Takaful targets poor families with children younger than 18 years sending them to schools, while Karama targets the elderly and the disabled who can’t functionally work to earn a living.
President Abdel Fattah Al-Sisi will inaugurate a desert reclamation project by the end of this month, aiming at expanding total farmland in Egypt by 20%. The project targets the reclamation of 1.5 million feddans, thus increasing total farmland to 9.5 million feddans, where the government will start by reclaiming around 10 thousand feddans in the Western Desert to plant crops such as Wheat and Corn.
“The project is a launching point for getting out of the narrow (Nile) Valley …closing the food gap and increasing habitable space in accordance with scientific studies is the main aim”Sherif IsmailPrime MinisterEFG Hermes Research 15th December 2015
World Bank Heaquarters, Washington DC
Central Bank Of Egypt Headquarters, Cairo
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EGYPT AT GLANCE
EXCHANGE RATES
TB’S AUCTION
EURO
17 Dec. 2015
13 Dec. 2015
13 Dec. 2015 17 Dec. 2015
USD
91 Days 11.186
273 Days 11.604
182 Days 11.401
357 Days 11.625
Sterling Pound
Auction Date
FX-AUCTION RATES
US $ 7.7301 7.7301
Auction Date 10th Dec. 2015
17th Dec. 2015
17th Dec. 2015
17th Dec. 2015
Average Yield %
YTD
Maturity
7.81 0% 0% 8.9%8.9%
11.68 -1.5% 6.2%-1.4% 3.7%
8.49 -1.3% 1.9% -1.5%-5.2%
W/W Y/YM/M
YTDW/W Y/YM/M
STOCK MARKET
EGX 30 6,669.80 4.1%0.5% -17.9%
INTEREST RATES
Overnight Lending Rate 10.25%9.75%
Overnight Deposit Rate 9.25%8.75%
Previous**Current*
* Since January 2015 ** Since July 2014
Corridor Rate -25 bp9.5%9.25%
-50 bp
-50 bp
3
-23.6%
5.006.007.008.009.00
10.0011.0012.0013.00
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
EGP per USD EGP per Euro EGP per Pound Sterling
400045005000550060006500700075008000850090009500
10000
Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15
EG
X
EGX 30 EGX 70 (Rel.) EGX 100 (Rel.)
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