UPDATE: Egypt’s business digest Aug. 13: After IMF deal, Egypt’s Sisi says will not hesitate on tough reforms; parliament prepares law for small enterprises
President Abdel Fatah al Sisi - YOUM7

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Euro exchange rate ‘stable’ at 9.92 EGP Saturday

Exchange rate of Euro has been semi stable against different Arab currencies on Saturday, according to Youm7.

The Euro rate against the Egyptian pound reached 9.92 for sale, while against the Saudi Riyal, it reached 4.19 SRL for sale.



Parliament prepares law to organize small enterprises

The head of the planning and balancing sub-committee at the parliament, Hussein Eissa said that the house of representatives is preparing a unified law for small and micro enterprises that includes stages of establishment and tax accounting system.


After IMF deal, Egypt’s Sisi says will not hesitate on tough reforms – REUTERS

(REUTERS) Egyptian President Abdel Fattah al-Sisi said on Saturday he was committed to pushing through the reforms necessary to turn the economy around and cut public debt, days after Egypt negotiated a $12 billion loan program with the International Monetary Fund.

The IMF said on Thursday it had agreed in principle a three-year facility to support comprehensive government reforms.

But the deal is subject to final approval by the IMF executive committee, and disbursement is linked to progress on a variety of reforms. They include subsidy cuts, the introduction of value added tax (VAT) and a shift to a more flexible exchange rate regime.

Successive governments have shied away from cutting subsidies, a politically explosive issue in a country where tens of millions rely on state-subsidized bread. Efforts to reduce the aid in the 1970s led to bread riots.

Speaking at the opening of a factory in Alexandria, Sisi said that experience would not deter him from pushing through painful reforms.

“The first effort at reform came in 1977, and when it was not accepted by the citizens, all the governments hesitated to make reform efforts, afraid of the reactions,” Sisi said.

“It is not only you who will judge me. God will also judge and so will history … All the difficult decisions that many hesitated to take over many years, that they were afraid to take, I will not hesitate to take for one second.”

In 2014, Egypt began a program to eliminate energy subsidies over five years. The government on Monday announced new increases in electricity prices.

A VAT bill is in parliament, where it has faced significant opposition from lawmakers concerned about the impact on prices in a country where headline inflation is at 14 percent.

Sisi said that repeated wars over the decades had set back Egypt’s economic development and that the uprising that ended Hosni Mubarak’s 30-year rule had shaken the economy.

He blamed terrorist attacks over the decades for holding back tourism and said there was a need to end corruption.

Sisi also said that a bloated public payroll had contributed to the country’s deficit and hinted at looming increases in the cost of riding Cairo’s underground trains. He also promised that programs were underway to protect the poorest from the impact impending reforms.


Sisi: Egypt’s written off debts reach $43 bln 

Egypt’s debts that have been written off have reached $43 billion, announced Egyptian President Abdel Fatah al-Sisi Saturday during inauguration of the long planned complex of the Egyptian Ethylene & Derivatives Co. (Ethydco) in Alexandria, Youm7 reported.

He added that the government’s plan of removing the subsidy on the electricity, which is carried out gradually, will save $20 billion for the electricity sector.


Egypt talks with IDB delegation to fund greenhouses of the 1.5 million feddan project 

Egyptian Ministry of International Cooperation Sahar Nasr has met with a delegation from (Islamic Development Bank (IDB) to discuss bilateral relations and the bank’s ongoing and future investments in Egypt, particularly finance greenhouses within the 1.5 million feddan project, according to a statement from the ministry Friday.

The IDB has funded projects worth $2.3 billion, while the International Islamic Trade Finance Corporation’s (ITFC) contributes in financing the purchase of oil products worth $3 billion, the statement added.


USD exchange rate ‘stable’ at 8.88 EGP Saturday

The USD exchange rate against the Egyptian pound remained “stable” at 8.85 EGP for purchase and 8.88 EGP for sale, while the Euro reached 9.88 EGP for purchase and 9.90 EGP for sale Saturday.


Finance ministry to borrow 10.2 bln EGP in T-bills on Sunday

The Finance Ministry, via the Central Bank of Egypt, is set on Sunday to borrow a total of 10.2 billion EGP through treasury bills (T-Bill), Youm7 reported.

The auction is divided into two installments:  the first 91-day-term treasury bonds are to the value of 4.7 billion EGP, while the second 266-day-term bills’ value is estimated at 5.5 million EGP.


CBE pumps 120 $mln into domestic banks Tuesday amid expected devaluation of the pound

The Central Bank of Egypt (CBE) will pump $120 million into domestic banks Tuesday, amid expectation of devaluating the Egyptian pound against the U.S dollar in coming period after its negotiation with the International Monetary Fund (IMF) to get $12 billion loan, Youm7 reported.

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