Al Ahly Pharos

The IMF Board completed the First and Second Reviews for Egypt and approved an augmentation of the original program by about USD5 billion, allowing the authorities to draw the equivalent of about USD820 million.  Egypt will receive the first tranche of an expanded loan agreement with the IMF next week, Prime Minister said during a news conference. He added that it is expected to receive the second...

Market Overview  DSCW GBCO PHDC 

Minister of Planning said that priority in the FY2024/25 budget's development plan has been given to establishing and expanding water and food security projects.  The Council agreed on the draft budget for FY 2024-25, as well as the budgets of public economic bodies, in preparation for sending them to the House of Representatives. The budget targets primary surplus of 3.5% and a EGP1.35 trill...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

The government has begun paying back nearly 20% of the arrears it owes to international oil companies (IOCs) operating in the country, with a structured plan now in place to clear the remaining debt in stages over the coming period. The Emirati company, Dana Gas, revealed that it received USD58 million in dues from Egypt during 2023. The company added they still have arrears of USD75 million. Egyp...

Market Overview 

A presidential decree establishing the Supreme Council of Taxes was issued, Minister of Finance announced, to empower the private sector, stimulate investment, and encourage investors to expand their productive and export activities. The government agreed with manufacturers and merchants to start reducing commodity prices by about 15% and 20%, bringing the reduction to 30% after Eid al-Fitr. Some...

Market Overview  HRHO SWDY ORHD SUGR TMGH prepared by: Mayada Amin -CETA, CFTe

Egypt has been listed on the agenda of the Executive Board of the International Monetary Fund next Friday, March 29, expected to approve the program newly agreed by the IMF staff level and the Egyptian government. The CBE, on behalf of the Finance Ministry, sold six-month and one-year EGP-denominated treasury bills worth EGP108.6 billion on Thursday at yields of 27.723% and 28.253%. SCZone racked...

Market Overview  DSCW AMOC EFIH prepared by: Mayada Amin -CETA, CFTe

The Ministry of Petroleum announced on Friday an increase in fuel prices affecting various octanes and diesel. Also, the Committee decided to move mazot prices for the brick and cement kiln industries and other sectors by EGP1,500 per ton starting Friday, while keeping prices unchanged for electricity and food sectors. On higher fuel prices, public transport users will also see a price hike. Egypt...

Market Overview  SUGR ELKA MASR FWRY EFIH HRHO ALCN CCAP prepared by: Mayada Amin- CETA, CFTe

The Federal Reserve held steady on interest rates at the conclusion of its March meeting, and it’s sticking with its forecast for three interest rate cuts.  The government has set up a ministerial committee that will select a consultant to manage, evaluate and market Sharm El Sheikh’s Ras Gamila development project. The committee is expected to make its choice next week. The government’s fuel pric...

Market Overview  prepared by: Mayada Amin - CETA, CFTe

The government is allocating EGP596 billion for subsidies and social support in the next fiscal year. And expects to record a budget deficit of 6% and a primary surplus of 3.5%.    The Saudi government approved a MoU between its Finance Ministry and Egyptian counterparts to establish a high-level financial dialogue.   According to the Minister of Finance, foreign cash inflows are expected to excee...

Market Overview  ABUK SUGR HELI EFIH Prepared by: Mayada Amin- CETA, CFTe

Will EGP flotation trigger drug price revisions? Thoughts on potential impact on producer sales and FVs According to local media, Egyptian drug producers intend to officially request for a price increase of at least 50% during their upcoming meeting with EDA to absorb the rise in production costs. Accordingly, we expect a gradual increase in drug prices to be implemented soon, reflecting a positiv...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

EU leaders have sealed a EUR7.4 billion deal with Egypt to help boost the economy, in an attempt to bring stability to the region and avert another migration crisis in Europe. Egypt has requested from the IMF USD5 billion as a first tranche it will receive next April. After the float of the EGP, the government has made easing the backlog one of its top priorities, with some USD3 billion worth of g...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

The two exchange companies affiliated with the National Bank of Egypt and Banque Misr attracted more than EGP2 billion in proceeds from concessions on foreign and Arab currencies in favor of the EGP, since the CBE's decision to liberalize the FX rate on 6 March. The Prime Minister said that the demand for the USD, as confirmed by the Governor of the CBE, has begun to decline in light of the w...

Market Overview  COMI ADIB HRHO BTFH SWDY prepared by: Mayada Amin- CETA, CFTe

Egypt's Banking Sector Poised for Another Leap Year Amid Surging Interest Rates We believe that Egyptian banks are well positioned to benefit from the current macroeconomic conditions, and we expect another year of exceptional profits with impact starting to appear in 1Q24. Key Factors Driving Strong Growth:  Stronger NIMs: supported by higher yield on treasury investments even on stable expo...

Market Overview  Prepared by: Mayada Amin- CETA, CFTe

Egypt expects to receive between USD5-6bn [EUR4.6-EUR6.5bn] in funding from the EU under a major 'cash for migrant control' pact which is set to be finalised this weekend.   The IMF intends to provide about USD1.5 billion to Egypt within weeks, within the framework of the loan program that was agreed to increase last Wednesday from USD3 billion to USD8 billion.   Customers have sold over...