Egypt business digest Nov. 16: World Bank says Egypt to get next $1 billion loan tranche by early Jan.; Kuwait to supply Egypt with 2 mln barrel of oil monthly for 3 years
Eni's Bouri Offshore oil terminal is seen off the Libyan coast, in the Mediterranean sea, Tuesday, Aug. 1, 2015. The Italian energy company announced it has discovered a "supergiant" natural gas field off Egypt, describing it as the "largest-ever" found in the Mediterranean Sea. (AP Photo/Gregorio Borgia)
By

CAIRO: No more browsing from site to site, view the top business news stories on Nov.16 here:

World Bank says Egypt to get next $1 billion loan tranche by early Jan

The World Bank will provide the second $1 billion tranche of its $3 billion budget support to Egypt by early January, the bank’s vice president Hafez Ghanem said on Tuesday.

Egypt has been negotiating billions of dollars in aid from various lenders to help revive an economy battered by political upheaval since the 2011 revolt and to ease a dollar shortage that has crippled import activity and hampered recovery.

“We are planning to go to our board of directors either by late in December or early in January, so we are talking of a matter of weeks,” Ghanem told Reuters in the Moroccan tourist city of Marrakesh where he was attending the U.N. climate change conference (COP22).

The World Bank provided the first $1 billion to Egypt earlier in 2016. After the second $1 billion by January, the third chunk is expected to follow later in 2017.

In another boost for the Cairo government, the International Monetary Fund’s executive board last week approved a three-year, $12 billion loan aimed at supporting Egypt’s economic reforms, and the central bank said it had received a first tranche of $2.75 billion.

But the government is facing growing discontent over austerity measures required by its international lenders.

Last Friday calls for protests failed to take place, but they have gained traction on social media after Egypt raised fuel prices and floated its currency.

The government has tried to win public support for the austerity measures with a billboard campaign and media blitz and also sought to expand social security schemes to shield the poorest from the effects of the rising prices.

“The reforms that the government has been putting in place, and supported by the IMF and ourselves, are necessary,” Ghanem said. “At the same time, our focus is really making sure that growth and development in Egypt are inclusive.”

Ghanem said the World Bank was working with the government to support the most vulnerable Egyptians through many other programs, including social housing.

Saudi Arabia, along with other Gulf oil producers, have pumped billions of dollars, including grants, into Egypt’s flagging economy since the army toppled President Mohamed Mursi of the Muslim Brotherhood in 2013 amid mass protests against his rule.

 

Kuwait to supply Egypt with 2 mln barrel of oil monthly for 3 years

Kuwaiti Cabinet approved to on Monday to renew a contact with Cairo, per which Kuwait to provide Egypt with two million barrel of oil monthly with the international prices, Kuwaiti newspaper Alrai reported on Tuesday.

The contract has been signed between two sides 10 years ago and is being renewed for each three years after getting an approval from the Kuwaiti Cabinet, Youm7 reported Egyptian Ministry of Petroleum Spokesperson Hamdy Abdel-Azizi on Tuesday.

The renewed three-year period of the contract will come into force in January 2017, he added.

In early October, Aramco suspended the oil supply to Egypt for October, stating no reasons behind the suspension. However, this move came after Egypt has voted for a Russian-drafted resolution on Syria at a meeting in the United Nation Security Council (UNSC), a step stirred Saudi Arabia’s anger. The suspension has extended to November and would last until further notice.

 

Egypt talks importing crude oil from Iraq mid-December

An Iraqi delegation will visit Egypt in mid-December to discuss new deal, per which Egypt will import crude oil, Youm7 reported officials at the Egyptian Ministry of Petroleum on Wednesday.

They added the Organization of Arab Petroleum Exporting Countries (OAPEC) will hold its ministerial meeting in Cairo on Dec. 11.

 

Egypt’s cabinet approves 4 international deals worth $3.5 bln

Egyptian Cabinet approved on Tuesday four agreements signed between the Egyptian Ministry of International Cooperation and Germany, South Korea, Japan, and the Kuwaiti Fud for the Economic Development.

The four agreements are worth $3.5 billion and will be invested in sectors of small and medium enterprises, energy, slum development, and drinking water.

 

Egyptian Co. opens gold treatment plant in Ghana

Egyptian Euroget group has inaugurated a plant of gold treatment in Ghana with a cost at $110 million, Egyptian state-owned news agency MENA reported Egyptian ambassador to Ghana Mohamed Haider.

The inauguration was attended by the Ghana’s President John Dramani Mahama and accompanying officials, he added.

 

Recommend to friends

Leave a comment