Egypt expects its domestic reforms to spur private investment whether or not it agrees on a non-financial International Monetary Fund program, a decision that will be made “soon,” Planning and Economic Development Minister Hala El-Saeed said, Bloomberg News reported. “Now is the time for the private sector,” said El-Saeed in an interview in London late Monday, while at a U.K.-organized conference to boost investment in Africa.
Egypt’s government debt surged to around $339 billion in the year to end-December, the central bank said on Tuesday, but economists say the borrowing remains within relatively safe limits, Reuters reported. The government’s foreign debt rose by 16.6 percent to $96.61 billion while domestic debt increased by 20.25 percent to 4.108 trillion Egyptian pounds ($242 billion). Economists say much of the foreign debt is relatively easy to roll over because it is owed to friendly lenders such as Gulf governments or the African Development Bank and the World Bank.
Egypt’s EFG Hermes will expand its debt restructuring and securitisation activities next year, the co-head of its investment banking division said. Hermes is advising on four merger and acquisition (M&A) deals expected in the first half of 2019 as well as a major M&A deal in Saudi Arabia’s health sector due to be completed next year, Mostafa Gad told Reuters. Hermes, the Middle East’s largest investment bank, operates in countries including Egypt, the United Arab Emirates, Saudi Arabia, Kuwait, Oman, Pakistan and Jordan, Reuters reported.