S&P optimistic about recent surge in financial support Egypt receives

S&P Global Ratings has expressed optimism due to the recent surge in financial support Egypt has received over the past two weeks, Reuters reported on Friday.

Notably, the support includes a substantial $35 billion investment from the United Arab Emirates (UAE) aimed at developing the Ras al-Hikma peninsula along Egypt’s Mediterranean coast. Additionally, Egypt has secured an $8 billion deal with the International Monetary Fund (IMF), according to the same news agency.

Two weeks ago, the North African nation finalised an agreement with the Emirati sovereign fund ADQ. Since then, it has initiated several significant reforms:
– The central bank implemented a substantial 600 basis-point interest rate increase this week.
– Simultaneously, the country committed to liberalising its currency.
– Additionally, the government successfully negotiated an enhanced deal with the International Monetary Fund (IMF).

These actions represent crucial steps towards economic stability and growth in the region.

Trevor Cullinan, the director of sovereign ratings at S&P Global Ratings in Dubai, expressed that they anticipated an imminent exchange rate adjustment. Furthermore, they expected the International Monetary Fund (IMF) to proceed with its existing program and potentially extend it.