Egypt signs USD 3.2 bn expansion of last year’s repo transaction with global banks

Egypt signs USD 3.2 bn expansion of financing agreement with global banks: Egypt has signed an expanded financing agreement with global banks, secured as part of a repurchase (repo) transaction in 2016, CBE Governor Tarek Amer said on Monday, according to Bloomberg. The agreement expands the one-year repo to USD 3.2 bn from USD 2 bn, said Amer, who did not state whether the duration has changed. The USD 2 bn in repo funding was secured last November against USD-denominated sovereign bonds issued in a private placement and are listed on the Irish Stock Exchange. Finance Minister Amr El Garhy had hinted last month that an expansion in the agreement would be contingent on the haircut, or discount, anticipating the latter might drop to 25% this year from 30% last year. Those terms have yet to be announced by the CBE. The move comes as Egypt looks set to make USD 14 bn in foreign debt payments this year.