Egypt has secured $2 billion in a syndicated loan from a consortium of regional banks as the country seeks to bridge its budget deficit and address external debt for the fiscal year.
The deal, closed by Emirates NBD and Standard Chartered, drew an "overwhelming" response from the market and was more than 2.5 times oversubscribed, according to a statement on Friday. Lenders that participated included Emirates Islamic Bank, Abu Dhabi Islamic Bank and National Bank of Kuwait.
The proceeds will be used primarily to finance Egypt's budgetary requirements and "support the country in safeguarding its strong economic path in the prevailing volatile global markets", the statement said. It will also help the country maintain a decreasing debt trajectory as the loan follows the full settlement of its $3 billion syndicated loan in November.
The $2 billion syndicated loan "underscores Egypt’s resilience and the confidence of our economic reforms", said Ahmed Kouchouk, Egypt's Minister of Finance. "Egypt continues to diversify its funding sources by leveraging regional financing opportunities, within a disciplined fiscal plan to maintain economic stability, as well as fiscal and debt sustainability."
The strong interest from regional and international banks in the syndicated loan "highlights Egypt’s strong position among emerging markets and the increasing confidence of cross-border investors in its economic outlook", said Hitesh Asarpota, chief executive of Emirates NBD Capital.
The deal comes after the International Monetary Fund reached an agreement with Egypt last month, allowing the country to access about $1.2 billion as part of an $8 billion loan programme. In the same month the Arab nation also received $1 billion in macroeconomic assistance from the European Commission under their continuing strategic partnership.
However, with loan repayments amounting to more than $60 billion for the 2024/2025 fiscal year, according to Egypt’s Central Bank, the country’s financing needs far outweigh the amount it has received.
For the current fiscal year, which began in July, Egypt paid $14.7 billion in the first quarter and approximately $7 billion in November and December, Prime Minister Mostafa Madbouly said last month. Its largest quarterly repayment of $20.59 billion is due in the third quarter, which began this month.
Mr Madbouly said the debt due in the coming year will be lower than the amount repaid in 2024, which amounted to about $38.7 billion.
Egypt, which borders Gaza, has been grappling with geopolitical instability in the region and revenue from the Suez Canal has slumped because of Houthi attacks in the Red Sea. Its economy has faced several challenges in recent years, including high debt levels, inflation and a foreign exchange shortage.
The IMF deal, which came less than a month after a UAE consortium bought 130 million square metres of Egypt’s Mediterranean coast for $35 billion, came with stringent economic reforms including a free float of the Egyptian pound, and significant reductions on food and energy subsidies.
Last month, the fund said the country's economic reform priorities include boosting domestic revenue, improving the business environment, accelerating divestment and levelling the playing field while "enhancing governance and transparency".
Ammar 808:
Maghreb United
Sofyann Ben Youssef
Glitterbeat
UAE currency: the story behind the money in your pockets
The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Company%20profile
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Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
Pieces of Her
Stars: Toni Collette, Bella Heathcote, David Wenham, Omari Hardwick
Director: Minkie Spiro
Rating:2/5
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
SPECS%3A%20Polestar%203
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BOSH!'s pantry essentials
Nutritional yeast
This is Firth's pick and an ingredient he says, "gives you an instant cheesy flavour". He advises making your own cream cheese with it or simply using it to whip up a mac and cheese or wholesome lasagne. It's available in organic and specialist grocery stores across the UAE.
Seeds
"We've got a big jar of mixed seeds in our kitchen," Theasby explains. "That's what you use to make a bolognese or pie or salad: just grab a handful of seeds and sprinkle them over the top. It's a really good way to make sure you're getting your omegas."
Umami flavours
"I could say soya sauce, but I'll say all umami-makers and have them in the same batch," says Firth. He suggests having items such as Marmite, balsamic vinegar and other general, dark, umami-tasting products in your cupboard "to make your bolognese a little bit more 'umptious'".
Onions and garlic
"If you've got them, you can cook basically anything from that base," says Theasby. "These ingredients are so prevalent in every world cuisine and if you've got them in your cupboard, then you know you've got the foundation of a really nice meal."
Your grain of choice
Whether rice, quinoa, pasta or buckwheat, Firth advises always having a stock of your favourite grains in the cupboard. "That you, you have an instant meal and all you have to do is just chuck a bit of veg in."
Company%C2%A0profile
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
The Beach Bum
Director: Harmony Korine
Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg
Two stars
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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