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Egypt’s informal sector volume reaches 80b EGP: official
The volume of Egypt’s informal sector registered reached 80 billion EGP (about $8.8 billion,)which represents 60 percent of the size of the country’s formal economy, said Mohamed al-Bahi, head of the tax committee at the Federation of Egyptian Industries.
He added that it would be difficult to provide exact figures of unlicensed factories, the volume of tax evasion and the amount of goods smuggled into the country.
The government has incurred losses estimated at 300 billion EGP due to tax evasions monitored at the informal sector, he added.
Egypt’s imports from Arab countries drop by 14% in Q2 of 2015-16 FY: CBE
Egypt’s imports from Arab countries increased by 14 percent during the 3rd quarter of 2015-2016 Fiscal Year to reach $2.4 billion down from $2.8 billion during the 2nd quarter of the same year, the Central Bank of Egypt said Saturday.
The figures align with the Industry and Foreign Trade ministry’s efforts to meet its target external trade ratios, rationalize imports and reduce the demand on hard currency, Industry Minister Tark Qabil was quoted by Youm7 Saturday.
Meanwhile, Egypt’s exports to Arab countries hit $907.5 million in May 2016 up from $799.1 million in May 2015. Imports from Arab countries declined during the same period to reach $621.4 million, compared with #882 million, according to a monthly bulletin released by the Central Agency for Public Mobilization and Statistics (CAPMAS.)
CBE to issue 11.2 b EGP treasury bills Sunday
The Central Bank of Egypt (CBE), on behalf of the Finance Ministry, will offer treasury bonds worth 11.2 billion EGP ($1.24b) on Sunday to help wipe out the country’s budget deficit, Youm7 reported.
The issuance is divided into two tranches; a 91-day auction worth 5.7 billion EGP and a 266-day auction at a value of 5.5 billion EGP.
The country’s budget deficit is expected to reach 322 billion EGP by the end of current Fiscal Year. Egypt’s government borrows from the domestic market to cover the state budget deficit.
International cooperation minister, EBRD director talk bilateral cooperation
International Cooperation Minister Sahar Nasr received on Saturday the European Bank for Reconstruction and Development (EBRD) Egypt Director, Philip ter Woort, Youm7 reported.
The two officials addressed ways to enhance bilateral cooperation in fields including sustainable energy, industry and agriculture.
Woort said that a delegation from the EBRD will visit Egypt on Monday to meet with Egyptian officials for talks on the bank work agenda in Egypt during upcoming period. He added that the bank allocated 500 million Euro to support Egypt’s new solar energy program.
The EBRD has mainly assisted small and medium-sized enterprises (SMEs) with loans and equity investments.
Egyptian investor, bondholders mull bid for Brazil’s Oi -sources
(Reuters)-Egyptian billionaire Naguib Sawiris and some creditors of Oi SA are considering pouring up to $1.5 billion into the debt-laden Brazilian telecoms carrier, whose in-court reorganization has failed to gain traction amid rows between bondholders and shareholders, two people with knowledge of the matter said.
Under the terms of the plan, which remains preliminary, the equity injection into Oi would aim to cut its 65.4 billion reais ($21 billion) in debt and give Sawiris and his partners a stake of about 85 percent, said the sources. Partners include about 70 bond firms that are advised by Moelis & Co .
The purpose of the Sawiris-bondholder plan is to wrest control from Oi’s current shareholders, including Portugal’s Pharol SGPS SA and investment firm FIA Société Mondiale, and prepare a potential sale of the company within three years, said one source.
Moelis said on Oct. 11 that joining forces with Sawiris would allow bondholders and the Egyptian tycoon to “discuss and evaluate an alternative recovery plan for Oi” during and after it emerges from bankruptcy.
Oi filed for bankruptcy protection in a commercial court in Rio de Janeiro in June.
Two other sources familiar with the strategy of Oi’s two main shareholders said Sawiris and his camp have not yet approached them, adding that the bidding amount under consideration is too low.