Egypt’s debts have reached EGP 2.3 trillion (about $293 billion), Prime Minister Sherif Ismail said Monday.He also said that the state’s general budget does not exceed EGP 864 billion.
Egypt’s debt service cost is EGP 250 billion. Wages come to EGP 218 billion and subsidies cost EGP 230 billion, Ismail said. This leaves about EGP 164 billion only for health, education, housing, sanitation, and infrastructure. Ismail said the government and parliament need to work together to achieve development across all sectors. He said services must be provided at the appropriate cost in order to “guarantee their continuity.” Ismail also said in an interview Monday that Egypt’s tourism revenue has declined by roughly $1.3 billion since the Russian plane crash in the Sinai in November. [Aswat Masriya, 2/29/2016]
The sharp decline in oil prices, fiscal consolidation efforts, and upcoming refinancing needs are expected to keep commercial debt issuance by Gulf Cooperation Council countries (GCC) elevated in 2016, according to Standard & Poor’s (S&P). “Based on our assumptions, we now expect a rise in GCC sovereign gross commercial long-term borrowing to $45 billion in 2016, up from $40 billion in 2015 and $4 billion in 2014,” S&P analyst Trevor Cullinan said. “We expect Saudi Arabia to account for nearly 70 percent of the GCC countries’ total borrowing in 2016 and to become the second-largest issuer of commercial debt in the MENA region.” Outside the GCC, Egypt and Iraq are expected to be biggest commercial debt issuers in 2016. S&P projected that MENA countries will borrow a total of $134 billion from long-term commercial sources in 2016, down from $143 billion in 2015. [Gulf News, 3/1/2016]
The Central Bank of Jordan (CBJ), in cooperation with the Ministry of Planning and International Cooperation, on Monday announced an agreement with Kuwait’s Arab Fund for Economic and Social Development (AFESD) for a loan of $100 million. The CBJ will relend the loan to banks and micro-financing companies, which will in turn lend to micro-, small-, and medium-sized enterprises. The CBJ is set to will establish a fund for loan guarantees for small- and medium-sized businesses in cooperation with the Jordan Loan Guarantee Corporation. Loans from the World Bank and AFESD in 2015 contributed to 11,600 projects and generated 2,600 jobs. [Gulf News, Jordan Times, 3/1/2016]
During a meeting on Monday, Prime Minister Habib Essid and German Federal Minister for Economic Cooperation and Development Gerd Müller discussed a organizing a meeting between German investors and Tunisian officials. The date of the meeting has not yet been set. Investors and officials will discuss means to facilitate administrative procedures and encourage German investment in Tunisia. Müller emphasized bilateral cooperation on investment between Germany and Tunisia, calling the country a “privileged partner of Germany.” He also stressed Germany’s commitment to “implement new cooperation programs that meet Tunisia’s needs and priorities.” Essid noted that Tunisia relies on German support for assistance with economic programs in the interior regions. [TAP, 2/29/2016]
Also of interest
Qatar central bank cancels monthly T-bill auction | Reuters
Iraq’s southern oil exports slip in February | Reuters
Egypt cancels five-year T-bond issue, ten-year bond yield jumps | Reuters
Moody’s affirms Tunisia’s government issuer rating | Moody’s
Tunisia holds key interest rate unchanged at 4.25 percent | Reuters
Istanbul hosts Turkey-Bahrain investment summit | World Bulletin
Turkey’s foreign trade deficit declines by 13.4 percent in January | Hurriyet
Egypt’s debts climb to EGP 2.3 trillion
Egypt’s debts have reached EGP 2.3 trillion (about $293 billion), Prime Minister Sherif Ismail said Monday. He also said that the state’s general budget does not exceed EGP 864 billion. Egypt’s debt service cost is EGP 250 billion. Wages come to EGP 218 billion and subsidies cost EGP 230 billion, Ismail said. This leaves about EGP 164 billion only for health, education, housing, sanitation, and infrastructure. Ismail said the government and parliament need to work together to achieve development across all sectors. He said services must be provided at the appropriate cost in order to “guarantee their continuity.” Ismail also said in an interview Monday that Egypt’s tourism revenue has declined by roughly $1.3 billion since the Russian plane crash in the Sinai in November. [Aswat Masriya, 2/29/2016]
GCC sovereign debt issuances to top $45 billion in 2016
The sharp decline in oil prices, fiscal consolidation efforts, and upcoming refinancing needs are expected to keep commercial debt issuance by Gulf Cooperation Council countries (GCC) elevated in 2016, according to Standard & Poor’s (S&P). “Based on our assumptions, we now expect a rise in GCC sovereign gross commercial long-term borrowing to $45 billion in 2016, up from $40 billion in 2015 and $4 billion in 2014,” S&P analyst Trevor Cullinan said. “We expect Saudi Arabia to account for nearly 70 percent of the GCC countries’ total borrowing in 2016 and to become the second-largest issuer of commercial debt in the MENA region.” Outside the GCC, Egypt and Iraq are expected to be biggest commercial debt issuers in 2016. S&P projected that MENA countries will borrow a total of $134 billion from long-term commercial sources in 2016, down from $143 billion in 2015. [Gulf News, 3/1/2016]
Kuwait fund offers $100 million loan to Jordan
The Central Bank of Jordan (CBJ), in cooperation with the Ministry of Planning and International Cooperation, on Monday announced an agreement with Kuwait’s Arab Fund for Economic and Social Development (AFESD) for a loan of $100 million. The CBJ will relend the loan to banks and micro-financing companies, which will in turn lend to micro-, small-, and medium-sized enterprises. The CBJ is set to will establish a fund for loan guarantees for small- and medium-sized businesses in cooperation with the Jordan Loan Guarantee Corporation. Loans from the World Bank and AFESD in 2015 contributed to 11,600 projects and generated 2,600 jobs. [Gulf News, Jordan Times, 3/1/2016]
Meeting between German investors, Tunisian officials to take place
During a meeting on Monday, Prime Minister Habib Essid and German Federal Minister for Economic Cooperation and Development Gerd Müller discussed a organizing a meeting between German investors and Tunisian officials. The date of the meeting has not yet been set. Investors and officials will discuss means to facilitate administrative procedures and encourage German investment in Tunisia. Müller emphasized bilateral cooperation on investment between Germany and Tunisia, calling the country a “privileged partner of Germany.” He also stressed Germany’s commitment to “implement new cooperation programs that meet Tunisia’s needs and priorities.” Essid noted that Tunisia relies on German support for assistance with economic programs in the interior regions. [TAP, 2/29/2016]
Also of interest
Qatar central bank cancels monthly T-bill auction | Reuters
Iraq’s southern oil exports slip in February | Reuters
Egypt cancels five-year T-bond issue, ten-year bond yield jumps | Reuters
Moody’s affirms Tunisia’s government issuer rating | Moody’s
Tunisia holds key interest rate unchanged at 4.25 percent | Reuters
Istanbul hosts Turkey-Bahrain investment summit | World Bulletin
Turkey’s foreign trade deficit declines by 13.4 percent in January | Hurriyet