EconSource: In Egypt, Medicines Disappear from Shelves Amid Dollar Shortage
Declines in the value of the Egyptian pound and a shortage of foreign exchange have made it harder for Egyptian pharmaceutical companies to import active ingredients they need to make generic medicines.

Though medicines are classed as essential goods, which puts them high on the priority list at banks deciding how to allocate dollars, pharmaceutical companies say they still face serious problems that have forced them to slow or pause production. A weaker currency has also made it more expensive to import raw materials, while the price of finished medicines remains fixed by the Health Ministry. This has forced manufacturers to stop producing some cheap generic medicines. Head of the Health Ministry’s Drug Shortages Directorate (DSD) acknowledged that Egypt’s dollar crisis is exacerbating shortages. He said the Health Ministry is looking at raising prices to encourage production. Medical professionals, however, say the shortages are more widespread and urgent than the official figures suggest. [Reuters, 2/10/2016]
 
Strains on Iraq’s budget from falling oil prices are delaying the removal of Islamic State (ISIS or ISIL) explosives in Ramadi and the restoration of basic services needed for displaced civilians to return to the city. Ramadi’s hundreds of thousands of residents will not be able to return until bombs are removed and infrastructure damaged by six months of fighting is rehabilitated. These operations require millions of dollars that Baghdad cannot spare. “We know that the government has its back against the wall fiscally. In order to stabilize areas and to help displaced families go back, we’ve got to do more,” said UN Humanitarian Coordinator in Iraq Lise Grande. She appealed to international donors for at least $40 million in additional assistance for initial reconstruction efforts. Anbar Governor Sohaib al-Rawi said his provincial government had not received its share of the federal budget in about two months. Other than UN-funded activities, he said efforts to prepare Ramadi for the return of civilians are being financed “through local efforts” of provincial authorities. Unless additional funds are provided, Grande says it could take nine months for efforts to clear a single district in southern Ramadi. [Reuters, 2/9/2016]
 
The United Arab Emirates (UAE) plans to release new risk management and corporate governance rules for banks by the end of this year, Head of Regulatory Development at the Central Bank James O’Brien said. “We are changing the UAE regulatory framework that will be consistent and transparent as per international standards,” O’Brien told a conference of regional regulators. “There will be a clear emphasis on board and management responsibility and accountability,” he said, adding that financial institutions will be given prior notice and time to implement the new regulations. O’Brien did not give details of the reforms, but said regulations governing non-bank financial companies are also under review. [Reuters, 2/10/2016]
 
Saudi Arabia and Bahrain have banned Iranian-flagged vessels from entering their waters and imposed other shipping restrictions. A ban on Iranian ships in those ports is unlikely to affect international trade, although it comes as Iran is struggling to increase oil exports amid insurance and financial hurdles that remain even though international curbs on its banking, insurance, and shipping sectors were lifted last month. Norwegian ship insurer Gard said that Bahrain had imposed a ban on any vessel that has visited Iran as one of its last three port calls. [Reuters, 2/9/2016]
 
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In Egypt, medicines disappear from shelves amid dollar shortage 
Declines in the value of the Egyptian pound and a shortage of foreign exchange have made it harder for Egyptian pharmaceutical companies to import active ingredients they need to make generic medicines. Though medicines are classed as essential goods, which puts them high on the priority list at banks deciding how to allocate dollars, pharmaceutical companies say they still face serious problems that have forced them to slow or pause production. A weaker currency has also made it more expensive to import raw materials, while the price of finished medicines remains fixed by the Health Ministry. This has forced manufacturers to stop producing some cheap generic medicines. Head of the Health Ministry’s Drug Shortages Directorate (DSD) acknowledged that Egypt’s dollar crisis is exacerbating shortages. He said the Health Ministry is looking at raising prices to encourage production. Medical professionals, however, say the shortages are more widespread and urgent than the official figures suggest. [Reuters, 2/10/2016]
 
Iraq’s troubled finances slow efforts to rebuild Ramadi
Strains on Iraq’s budget from falling oil prices are delaying the removal of Islamic State (ISIS or ISIL) explosives in Ramadi and the restoration of basic services needed for displaced civilians to return to the city. Ramadi’s hundreds of thousands of residents will not be able to return until bombs are removed and infrastructure damaged by six months of fighting is rehabilitated. These operations require millions of dollars that Baghdad cannot spare. “We know that the government has its back against the wall fiscally. In order to stabilize areas and to help displaced families go back, we’ve got to do more,” said UN Humanitarian Coordinator in Iraq Lise Grande. She appealed to international donors for at least $40 million in additional assistance for initial reconstruction efforts. Anbar Governor Sohaib al-Rawi said his provincial government had not received its share of the federal budget in about two months. Other than UN-funded activities, he said efforts to prepare Ramadi for the return of civilians are being financed “through local efforts” of provincial authorities. Unless additional funds are provided, Grande says it could take nine months for efforts to clear a single district in southern Ramadi. [Reuters, 2/9/2016]
 
New risk management, governance rules for UAE banks by year-end 
The United Arab Emirates (UAE) plans to release new risk management and corporate governance rules for banks by the end of this year, Head of Regulatory Development at the Central Bank James O’Brien said. “We are changing the UAE regulatory framework that will be consistent and transparent as per international standards,” O’Brien told a conference of regional regulators. “There will be a clear emphasis on board and management responsibility and accountability,” he said, adding that financial institutions will be given prior notice and time to implement the new regulations. O’Brien did not give details of the reforms, but said regulations governing non-bank financial companies are also under review. [Reuters, 2/10/2016]
 
Saudi Arabia, Bahrain ban Iranian ships from ports 
Saudi Arabia and Bahrain have banned Iranian-flagged vessels from entering their waters and imposed other shipping restrictions. A ban on Iranian ships in those ports is unlikely to affect international trade, although it comes as Iran is struggling to increase oil exports amid insurance and financial hurdles that remain even though international curbs on its banking, insurance, and shipping sectors were lifted last month. Norwegian ship insurer Gard said that Bahrain had imposed a ban on any vessel that has visited Iran as one of its last three port calls. [Reuters, 2/9/2016]
 
Also of interest
OPEC points to larger oil surplus in 2016, says low prices hurting economy | Reuters
Saudi reform efforts wax and wane with oil revenues (analysis) | Reuters
Iran says ready to talk with Saudi over oil market conditions | Reuters
Saudis embrace plea to take share of economic pain | FT
Saudi Arabia cuts funding for students abroad | CNN
Bunge Ltd challenges Egypt over rejected French wheat cargo | Reuters
Egypt’s annual core inflation increases to 7.73 percent in January | Reuters
Egypt’s annual urban consumer inflation falls to 10.7 percent in January | Reuters
Egypt’s Beltone Financial prepares IPOs worth more than EGP 10 billion | DNE
Tunisia’s annual inflation rate falls in January to 3.5 percent | Reuters
Tunisia adopts loan agreement facilitating restructuring of public funds | TAP
Minister says Tunisia needs external funding to modernize road network | TAP
Turkish firm puts Russian bank up for sale amid political row | Reuters