Egypt outlook revised to positive after lending deals

Egypt outlook revised to positive after lending deals

Moody’s has upgraded Egypt’s outlook from negative to positive following the expanded $8 billion funding from the International Monetary Fund (IMF). The credit-rating company also affirmed Egypt’s foreign currency ratings. The revision reflects the significant official and bilateral support announced and marked policy steps taken in the past week that will, if maintained, support macroeconomic […]Moody’s has upgraded Egypt’s outlook from negative to positive following the expanded $8 billion funding from the International Monetary Fund (IMF).

The credit-rating company also affirmed Egypt’s foreign currency ratings.

The revision reflects the significant official and bilateral support announced and marked policy steps taken in the past week that will, if maintained, support macroeconomic rebalancing, Moody’s said in a statement.

The UAE’s “very large” front-loaded foreign direct investment contribution significantly bolsters the Egyptian economy’s foreign exchange reserves.

The Gulf state’s $35 billion, or 8.8 percent of Egypt’s GDP, foreign investment commitment includes $24 billion in new cash transfers over two months to acquire land development rights.

The injection of fresh forex liquidity will be sufficient to help close the external financing gap, estimated at $15 billion, until fiscal 2026, in addition to a $7 billion forex backlog that has accumulated since February 2022, Moody’s said.

The conversion of $11 billion