EconSource: Fitch–Public finances remain key challenge after Egypt vote

Follow the latest in economic news and developments about the Arab transition countries. 

“Egypt’s public finances are the main weakness for its sovereign credit profile,” Fitch Ratings said in a Friday report and that the victory of Sisi in the presidential election does not alter “expectations that the authorities will be cautious in addressing the large fiscal deficit.” [Cairo Post]
Finance Minister Hany Kadry Demian confirmed on Thursday that the Egyptians cabinet has approved levying a 10 percent capital gain tax (CGT) on profits and dividends of the listed securities in an attempt to shower the public treasury with EGP 10 billion ($1.4 billion) per annum. [Ahram, Mada Masr]
The Executive Board of the Central Bank of Tunisia (BCT) noted a slower economic growth in the first quarter of the current year registering 2.2 percent compared to 2.7 percent in the same period of last year. The inflation rate stood at 5.2 percent in May on year-on-year basis, against 5 percent the previous month. [TAP]
Libya hopes to offer more flexible and less punitive oil licenses next year, based on a new hydrocarbons law currently being drafted, the chairman of the country’s national oil company said Thursday. Foreign companies frequently complain that punitive contractual terms, on top of serious security issues, are a barrier to investing in Libya’s vast oil resources. [WSJ]
Also of Interest:
Companies to provide microcredit for the first time in Egypt | Ahram
Egypt central bank keeps interest rates on hold | Ahram
Analysis: With Sisi voted president, will Egypt see a rise in GCC investments? | Gulf Business
Mixed reaction to Jordan’s draft investment law | OBG
Morocco & Tunisia express resolve to boost economic exchanges | MAP
Tunisia: FDI down 15 percent by end-April 2014 | TAP
Tunisia: Net foreign assets drop to 95 days of imports | African Manager
EU extends Syria economic sanctions until June 2015 | AFP