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Maait: $23 billion in hot money came out of Egypt this year

Dr. Mohamed Maait, Minister of Finance, revealed that $23 billion in hot money came out of Egypt this year, what he described as a “difficult and challenging” situation as a result of the decline in the currency price and the outbreak of the inflationary wave.

The Minister of Finance confirmed in the opening session of the Euromoney conference, which was held yesterday – Wednesday – in Cairo, that the Egyptian economy would have suffered this year even if the Russian-Ukrainian war had not erupted, due to the repercussions of the Corona virus, stressing that recovery from both crises would take a long period.

The session, which was moderated by Richard Banks, Senior Adviser to Euromoney, dealt with the challenges facing the Egyptian economy as a result of the global and domestic inflationary wave, the disruption of supply chains, the war in Europe, the currency crisis, the difficulty of accessing international financing markets, and the International Monetary Fund loan prior to the meeting. The Executive Board of the institution this month.

The minister affirmed that Egypt is seeking to solve the financing problem it is facing through several axes, most notably diversifying debt instruments, reducing its costs, expanding unusual financing mechanisms, and implementing new international proposals as long as the markets are ready to absorb them.

He said that preparations are underway to offer “Panda” bonds in the Chinese market, and sustainability bonds, in order to attract new segments of investors.

And the Minister of Finance had said during the eighth CEO conference, which was held on December 4 and 5, “We hope to issue “Panda” bonds equivalent to 500 million dollars before the end of the third quarter of this year, and we previously issued Japanese “Samurai” bonds at a value of 500 million. dollar”.

Maait said that no new measures regarding the IMF loan will be announced before the Executive Council meeting on December 16, stressing that the loan comes within the framework of a program aimed at sending a message of reassurance about the macroeconomic situation.

Maait had also revealed during the CEO Conference that the first installment of the loan will be obtained during the current month, at a value of $750 million during the current month.

The Minister of Finance reviewed the Egyptian government’s strategy to confront the current crises and pressures, which includes attracting foreign direct investments worth $10 billion, bringing gas exports to $1 billion per month next year, compared to $600 million currently, moving towards green energy, exporting hydrogen and green ammonia, and promoting Domestic product to control imports and the currency crisis.

The minister said that Egypt currently imports 120 million barrels of oil annually, and with reliance on green energy, this number will decline, which will support the currency and the local economy.

He pointed out that there are a number of dollar resources in Egypt, including the revenues of the Suez Canal, which jumped to the level of 7 billion dollars, compared to 5.5 billion previously, and labor transfers, tourism, and exports.

The minister stated that Egypt enjoys a strong attractiveness as an investment destination for the brothers in the Gulf, due to its good location in Africa and the Middle East, as well as cheap labor.

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