Egypt: Egyptian start-ups raised a total of $70 million in just 18 financing deals in February 2022
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Agence Ecofin
Friday 30 September 2022 Last update on Friday, September 30, 2022 At 7:00 AM

The American bank Goldman Sachs estimates that Egypt should mobilize $15 billion in external borrowing to meet its financing needs over the next three years.

Egypt is negotiating loans at a reasonable cost with China and Japan to diversify sources of financing for its economy, Bloomberg reported on Thursday, September 22, citing Finance Minister Mohamed Maait.

“We are considering a range of alternatives to try to obtain cheap financing. In this context, discussions have been initiated with certain governments, such as those of Japan and China, to obtain loans at a reasonable cost,” the minister said.

According to him, the negotiations with Japan concern a loan of up to 500 million dollars which will be allocated to different areas, including environmentally friendly projects.

Mohamed Maait also said that Egypt is trying to obtain financing from international and regional development banks, and is considering forays into international debt markets if conditions allow.

“If conditions are favorable in fiscal year 2022/2023 (July 1/June 30), the Ministry of Finance could raise $500 million in the Chinese bond market and issue $500 million of green bonds. The other option is to raise up to $2 billion through the issuance of a sovereign sukuk,” he said.

The Minister also indicated that his country hopes to conclude an agreement on a new financing program with the International Monetary Fund (IMF) “within one to two months”, recalling that the multilateral financial institution recently praised Egypt’s fiscal policy and its record of economic reform.

The mobilization of new external financing promises to be vital for the Egyptian economy which is bearing the brunt of the consequences of the war in Ukraine. As foreign investors have pulled $22 billion out of the Egyptian debt market since the start of the Russian-Ukrainian conflict, the Arab world’s most populous country faces higher food and fuel import bills. high.

The American bank Goldman Sachs estimated, in an analysis published last August, that Egypt would have to mobilize $15 billion in external borrowing to meet its financing needs over the next three years.

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