CBE studies establishing African credit rating agency

The Central Bank of Egypt is currently conducting studies to establish an African credit rating agency, Naglaa Nozahie , Governor’s Advisor for African Affairs and Supervisor of the Economic Research Sector said.

The new agency will work on issuing fair credit ratings for the institutions operating in Africa, Nozahie added on the side lines of the 11th Egypt Economic Forum.

A credit rating agency (CRA, also called a ratings service) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default.

On the other hand, she said that the first unified African central bank will be established by 2043 with the issuance of a unified African currency by 2045, and the move needs accord and a political will from the African states’ leaders.