{"id":598953,"date":"2019-06-13T04:00:00","date_gmt":"2019-06-13T04:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/"},"modified":"2019-06-13T04:00:00","modified_gmt":"2019-06-13T04:00:00","slug":"businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/","title":{"rendered":"Businesses eager for interest rates to return to pre-float levels to boost investment"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a><b> EXCLUSIVE- The Enterprise business interest rate survey: How far will interest rates have to fall before big business starts borrowing to finance capex? <\/b><a href=\"https:\/\/enterprise.press\/stories\/2019\/06\/11\/annual-inflation-increases-to-14-1-in-may\/\">Inflation rose unexpectedly in May<\/a>, and turmoil in global markets makes it imperative Egypt remain attractive to the carry trade. Together, those factors mean sky-high interest rates are going to be here a while longer. <a href=\"https:\/\/enterprise.press\/stories\/2019\/05\/20\/when-will-we-see-capex-spending-pick-up\/\">Analysts with whom we spoke last month<\/a> predicted that the next rate cut was unlikely before 4Q2019, and <a href=\"https:\/\/enterprise.press\/stories\/2019\/06\/12\/what-were-tracking-on-12-june-2019\/\">that consensus held this week<\/a>.<\/p>\n<p><b>The issue here is that businesses are borrowing<\/b>, but only short-term money to finance working capital. They\u2019re not taking out larger, long-term loans to finance new production capacity or innovation \u2014 that type of borrowing fell off a cliff when the central bank jacked interest rates to the heavens after the float of the Egyptian pound.<\/p>\n<p><b>Why? <\/b>The central bank\u2019s <a href=\"https:\/\/enterprise.press\/stories\/2019\/05\/26\/egypts-central-bank-keeps-interest-rates-on-hold\/\">overnight deposit and lending rates<\/a> have remained unchanged at 15.75% and 16.75% since February. Those are expensive rates at which to borrow \u2014 meaning, in very basic terms, that your expansion has to generate much higher returns for it to be worthwhile \u2014 instead of just tossing your money in the bank and scooping up the interest.<\/p>\n<p><b>And it\u2019s actually a lot more expensive than that to borrow: <\/b>The average interest rate charged by banks to corporates for facilities backing capital expenditure (capex) is on the order of 20%. Think about it: <b>Credit-card interest rate levels to finance your business\u2019 growth. <\/b><\/p>\n<p><b>So we ask: How low do rates have to go before businesses start borrowing again <\/b>not to finance the day-to-day, but to build something new.<\/p>\n<p><b>Key highlights: <\/b>We polled execs at nine companies in the food, healthcare, automotive, construction and financial sectors. Here are the key takeaways:<\/p>\n<ul>\n<li><b>Interest rates need fall to 10-13%<\/b> range (ie: pre-EGP float levels) for capex spending to pick up; <\/li>\n<li>Some companies need to see a pick-up in consumer demand before increasing spending;<\/li>\n<li>For others, the trigger is about getting their utilization rates up;<\/li>\n<li>Companies borrowing in USD have had an easier time financing additional capex \u2014 the borrowing cost is just so much lower;<\/li>\n<li>Most are ready to invest when rates drop.<\/li>\n<\/ul>\n<p><b>All nine companies we spoke with want to see a lower interest rate environment<\/b> and further monetary easing. Overall, the companies would like to see interest rates fall into the 10-13% band <b>Healthcare companies<\/b> would like to see a 200 bps cut this year, with a long-term interest rates reaching 13%. <b>Auto companies<\/b> meanwhile are eyeing interest rates in the range of 11-13%, and <b>food industry companies<\/b> would prefer rates to fall slightly lower to 10-12%. <b>Investment <\/b>conglomerate Egyptian Kuwait Holding (EKH) would like to see them in the 11-12% range to encourage investment.<\/p>\n<p><b>Food and auto \u2014 they want to grow, but can\u2019t justify the cost as it stands:<\/b> The food and auto companies with whom we spoke need to borrow for expansion, but struggle to justify borrowing in the current high interest rate environment. \u201cThe current high rates eat from earnings and are a financial burden on business. They don't only impact future business, but current operations as well,\u201d says GB Auto Associate Vice President for Investor Relations Andre Valavanis, adding, \u201cAll our capex plans are currently shelved because of the high cost of debt.\u201d<\/p>\n<p><b>The food sector is particularly hamstrung by high interest rates: <\/b>Dairyfoods player Juhayna has significantly reduced its capex spend since the currency float, having <a href=\"http:\/\/juhaynacom-mokannggxlave7h.stackpathdns.com\/app\/uploads\/2018\/01\/JUFO-ER-FY17-E.pdf\">frozen its spending in 2017<\/a>. Snackfood producer Edita, meanwhile, saw its capex outlay fall to EGP 105.2 mn <a href=\"http:\/\/resources.inktankir.com\/efid\/Edita-4Q2018-Earnings-Release-E-FINAL.pdf\">in 2018<\/a> from EGP 361.8 mn <a href=\"http:\/\/resources.inktankir.com\/efid\/Edita-FY2015-ER-FINAL-2.pdf\">in 2015<\/a>. \u201cOur capex cycle before the float reached about EGP 1 bn at one point in time,\u201d said Ahmed Saad, head of investor relations at Juhayna. \u201cFollowing the currency float in 2016 it was at a minimum of EGP 200-250 mn annually, mainly for maintenance.\u201d There\u2019s been a modest rebound since out of necessity, he says: \u201cIt now stands at approximately EGP 400-450 mn.\u201d<\/p>\n<p><b>Lower interest rates will also boost consumer demand: <\/b>For auto and food companies, a lower interest rate environment is also about spurring consumer spending. \u201cBeyond capex,lower rates should also stimulate the economy in terms of consumer demand,\u201d said Edita Investor Relations and Business Development Senior Director Menna Shams El Din. Adds GB Auto\u2019s Valavanis: \u201cIt won\u2019t only be about capex, it will bring down prices [in the automotive industry], which leads to more demand and more investment in expansions whether in sales or manufacturing.\u201d<\/p>\n<p><b>But high rates haven\u2019t deterred health and pharma companies: <\/b>As <a href=\"https:\/\/www.investopedia.com\/terms\/d\/defensivestock.asp\">defensive stocks<\/a> whose businesses are far less impacted by economic downturns than automotive or real estate companies, many Egyptian healthcare and pharma companies have continued to borrow to fund capex spending in the current high interest rate environment. Think about it: When your salary doesn\u2019t go as far because of a high inflation environment, you\u2019re still going to buy heart meds and pay school tuition \u2014 but you\u2019re not as likely to buy your dream car.<\/p>\n<p><b>Against that backdrop: <\/b>Ibnsina Pharma saw capex more than quadruple to EGP 478.9 mn <a href=\"http:\/\/resources.inktankir.com\/isph\/ISP-ER-4Q18-E-Final.pdf\">in 2018<\/a> from EGP 111.3 mn <a href=\"http:\/\/resources.inktankir.com\/isph\/ISP-ER-FY2017-FINAL.pdf\">in 2016<\/a>. Cleopatra Hospitals raised its spending rise to EGP 148.6 mn <a href=\"https:\/\/s3.amazonaws.com\/inktankir2\/cleopatra\/Cleopatra-ER-4Q18-E-FINAL-clean-.pdf\">in 2018<\/a> from EGP 117 mn <a href=\"https:\/\/s3.amazonaws.com\/inktankir2\/cleopatra\/Cleopatra-ER-FY2017.pdf\">in 2017<\/a>. Ibn Sina also benefited from extra liquidity after its <a href=\"https:\/\/enterprise.press\/stories\/2017\/12\/05\/ibnsina-pharma-prices-ipo-at-egp-5-80-per-share-says-institutional-offering-is-more-than-17x-oversubscribed\/\">highly successful IPO in 2017<\/a>.<\/p>\n<p><b>Where you stood before the float also matters:<\/b> Companies that had borrowed prior to or around the time of the float of the EGP back in 2016 (yes, it\u2019s been more than 2.5 years\u2026) locked-in favorable interest rates. \u201cFortunately, we had invested over the past years and built our fifth factory. We have already reduced our EGP debt exposure in light of its high cost,\u201d said Edita\u2019s Shams El Din. \u201cWe are currently working on USD financing for our Morocco investments and to add some more production lines,\u201d she added.<\/p>\n<p><b>Companies with USD revenue streams have had fewer worries about the cost of borrowing. <\/b>\u201cInvestments with USD revenue streams are operating on USD debt, while projects whose revenues are in EGP are executed over multiple phases to reduce the cost,\u201d said EKH\u2019s Investor Relations Director Haitham Abdel Moneim. \u201cWe are planning to invest around USD 180 mn in 2019, including USD 110 mn at our natural gas operations, where revenues are covered in USD. It is the same case for electricity projects in which we plan to invest USD 25 mn with a 60:40 debt-to-equity ratio,\u201d he added.<\/p>\n<p><b>Some are still waiting for utilization rates recover and even get close to the red line before borrowing again: <\/b>\u201cOur current focus is to do the necessary capex to maintain equipment and secure our market position,\u201d said Juhayna\u2019s Saad. \u201cWe are also focused on utilizing current capacities before investing in adding new ones,\u201d he added. \u201cIn 2020, when we expect to see higher utilization rates, we would have a clear picture of the best expansion routes.\u201d<\/p>\n<p><b>Where would our poll-takers deploy new financing if interest rates were to come down?<\/b><\/p>\n<ul>\n<li><b>Abou Ghaly Motors:<\/b> \u201c[Low interest rates] will allow us to expand investments, speed up expansions and increase profits,\u201d said Tamer Kotb, the company\u2019s commercial director, said. \u201cIt will allow us to expand by increasing branches and expand the car hiring business by buying more cars \u2014 and we\u2019ll be able to generate new demand then by lowering rental prices.\u201d<\/li>\n<li><b>GB Auto:<\/b> \u201cOnce rates are reasonable, we want to spend between EGP 400-500 mn on service centers, not to mention other expansions and investments that will open up in this new environment,\u201d Valavanis said.<\/li>\n<li><b>EKH:<\/b> \u201cIf [for example] we get the sense that there is a direction for easing, we could speed up our investment in the new EGP 2 bn medium-density fiberboard factory,\u201d said Abdel Moneim.<\/li>\n<li><b>Juhayna:<\/b> \u201cCutting rates will allow us to think broader than our current pipelines and look at different investment openings for growth and It will allow us more financial flexibility,\u201d Saad told us.<\/li>\n<li><b>Ibnsina: <\/b>It\u2019s more about the short term in a cash-intensive business that\u2019s already built out its infrastructure: \u201cIf rates fall substantially, this will allow us to use bank facilities to fund cash purchases from suppliers and get cash discounts,\u201d the company\u2019s investor relations manager, Mohamed Shawky, said. \u201cThis should improve our margins and will give us financial flexibility.\u201d <\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>EXCLUSIVE- The Enterprise business interest rate survey: How far will interest rates have to fall before big business starts borrowing to finance capex? Inflation rose unexpectedly in May, and turmoil in global markets makes it imperative Egypt remain attractive to the carry trade. Together, those factors mean sky-high interest rates are going to be here [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":598954,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[2729,192,1668,72,241,1414,349,1027,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-598953","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-speed-round","tag-abou-ghaly-motors","tag-cleopatra-hospitals-group","tag-egypt-kuwait-holding","tag-enterpriseam","tag-gb-auto","tag-ibnsina-pharma","tag-interest-rates","tag-juhayna","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"5d6dcb6b-510e-460d-bd26-342205d89224","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2019\/6\/1967.jpg","photo_position":"above","related_issue":[598947],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Businesses eager for interest rates to return to pre-float levels to boost investment - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Businesses eager for interest rates to return to pre-float levels to boost investment\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- The Enterprise business interest rate survey: How far will interest rates have to fall before big business starts borrowing to finance capex? Inflation rose unexpectedly in May, and turmoil in global markets makes it imperative Egypt remain attractive to the carry trade. Together, those factors mean sky-high interest rates are going to be here [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2019-06-13T04:00:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1\" \/>\n<meta name=\"author\" content=\"enterpriseam admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"enterpriseam admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"Businesses eager for interest rates to return to pre-float levels to boost investment\",\"datePublished\":\"2019-06-13T04:00:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\"},\"wordCount\":1375,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1\",\"keywords\":[\"Abou Ghaly Motors\",\"Cleopatra Hospitals Group\",\"Egypt Kuwait Holding\",\"EnterpriseAM\",\"GB Auto\",\"Ibnsina Pharma\",\"interest rates\",\"Juhayna\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\",\"name\":\"Businesses eager for interest rates to return to pre-float levels to boost investment - EnterpriseAM Egypt\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1\",\"datePublished\":\"2019-06-13T04:00:00+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage\",\"url\":\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1\",\"contentUrl\":\"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/enterpriseam.com\/egypt\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Businesses eager for interest rates to return to pre-float levels to boost investment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#website\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/\",\"name\":\"EnterpriseAM\",\"description\":\"The State of the Nation\",\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/enterpriseam.com\/egypt\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\",\"name\":\"EnterpriseAM\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ent.news\/internal\/240894.svg\",\"contentUrl\":\"https:\/\/ent.news\/internal\/240894.svg\",\"caption\":\"EnterpriseAM\"},\"image\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\",\"name\":\"enterpriseam admin\",\"sameAs\":[\"http:\/\/enterpriseam.testing.projectsarea.com\"],\"url\":\"https:\/\/enterpriseam.com\/egypt\/author\/enterpriseam\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Businesses eager for interest rates to return to pre-float levels to boost investment - EnterpriseAM Egypt","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/","og_locale":"en_US","og_type":"article","og_title":"Businesses eager for interest rates to return to pre-float levels to boost investment","og_description":"EXCLUSIVE- The Enterprise business interest rate survey: How far will interest rates have to fall before big business starts borrowing to finance capex? Inflation rose unexpectedly in May, and turmoil in global markets makes it imperative Egypt remain attractive to the carry trade. Together, those factors mean sky-high interest rates are going to be here [&hellip;]","og_url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/","og_site_name":"EnterpriseAM Egypt","article_published_time":"2019-06-13T04:00:00+00:00","og_image":[{"url":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1","type":"","width":"","height":""}],"author":"enterpriseam admin","twitter_card":"summary_large_image","twitter_misc":{"Written by":"enterpriseam admin","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#article","isPartOf":{"@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/"},"author":{"name":"enterpriseam admin","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d"},"headline":"Businesses eager for interest rates to return to pre-float levels to boost investment","datePublished":"2019-06-13T04:00:00+00:00","mainEntityOfPage":{"@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/"},"wordCount":1375,"publisher":{"@id":"https:\/\/enterpriseam.com\/egypt\/#organization"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1","keywords":["Abou Ghaly Motors","Cleopatra Hospitals Group","Egypt Kuwait Holding","EnterpriseAM","GB Auto","Ibnsina Pharma","interest rates","Juhayna","SPEED ROUND"],"articleSection":["Speed Round"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/","url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/","name":"Businesses eager for interest rates to return to pre-float levels to boost investment - EnterpriseAM Egypt","isPartOf":{"@id":"https:\/\/enterpriseam.com\/egypt\/#website"},"primaryImageOfPage":{"@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage"},"thumbnailUrl":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1","datePublished":"2019-06-13T04:00:00+00:00","breadcrumb":{"@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#primaryimage","url":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1","contentUrl":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1"},{"@type":"BreadcrumbList","@id":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/13\/businesses-eager-for-interest-rates-to-return-to-pre-float-levels-to-boost-investment\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/enterpriseam.com\/egypt\/"},{"@type":"ListItem","position":2,"name":"Businesses eager for interest rates to return to pre-float levels to boost investment"}]},{"@type":"WebSite","@id":"https:\/\/enterpriseam.com\/egypt\/#website","url":"https:\/\/enterpriseam.com\/egypt\/","name":"EnterpriseAM","description":"The State of the Nation","publisher":{"@id":"https:\/\/enterpriseam.com\/egypt\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/enterpriseam.com\/egypt\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/enterpriseam.com\/egypt\/#organization","name":"EnterpriseAM","url":"https:\/\/enterpriseam.com\/egypt\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/","url":"https:\/\/ent.news\/internal\/240894.svg","contentUrl":"https:\/\/ent.news\/internal\/240894.svg","caption":"EnterpriseAM"},"image":{"@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d","name":"enterpriseam admin","sameAs":["http:\/\/enterpriseam.testing.projectsarea.com"],"url":"https:\/\/enterpriseam.com\/egypt\/author\/enterpriseam\/"}]}},"featured_image_src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"enterpriseam admin","author_link":"https:\/\/enterpriseam.com\/egypt\/author\/enterpriseam\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1967.jpg?fit=%2C&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":598424,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/26\/egypts-central-bank-keeps-interest-rates-on-hold\/","url_meta":{"origin":598953,"position":0},"title":"Egypt\u2019s central bank keeps interest rates on hold","author":"enterpriseam admin","date":"26 May 2019","format":false,"excerpt":"With one eye on inflation, the central bank leaves interest rates on hold: The Central Bank of Egypt\u2019s Monetary Policy Committee left key interest rates unchanged on Thursday, in line with analyst expectations. The MPC left the overnight deposit and lending rates at 15.75% and 16.75%, respectively, and also left\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/11\/1115.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":595676,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/04\/egypts-economic-conditions-could-allow-cbe-to-accelerate-easing-cycle-hc-securities\/","url_meta":{"origin":598953,"position":1},"title":"Egypt\u2019s economic conditions could allow CBE to accelerate easing cycle -HC Securities","author":"enterpriseam admin","date":"4 August 2019","format":false,"excerpt":"Egypt\u2019s economic conditions could allow CBE to accelerate easing cycle, fully reverse monetary tightening by 2020 -HC Securities: Improving economic conditions and the anticipated cool-down of inflation once the full effect of fuel subsidy cuts wear off should give the Central Bank of Egypt (CBE) enough breathing room to begin\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":649099,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/04\/23\/imf-wants-egypt-to-raise-interest-rates-to-curb-inflation\/","url_meta":{"origin":598953,"position":2},"title":"IMF wants Egypt to raise interest rates to curb inflation","author":"enterpriseam admin","date":"23 April 2017","format":false,"excerpt":"The IMF looks to be pushing Egypt to keep interest rates high in a bid to curb inflation. Egyptian policy makers need to put a special focus on inflation, said International Monetary Fund managing director Christine Lagarde at a press conference on Thursday kicking off the IMF and World Bank\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":593045,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/11\/17\/central-bank-of-egypt-cuts-interest-rates-by-100-bps\/","url_meta":{"origin":598953,"position":3},"title":"Central Bank of Egypt cuts interest rates by 100 bps","author":"enterpriseam admin","date":"17 November 2019","format":false,"excerpt":"CBE cuts rates by 100 bps, in line with market expectations: The Central Bank of Egypt\u2019s Monetary Policy (MPC) cut interest rates by 100 bps on Thursday, the CBE said in a statement (pdf). The central bank cited inflation\u2019s continued deceleration in October, with annual headline inflation hitting its lowest\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/11\/1115.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":592064,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/25\/are-we-at-the-long-awaited-age-of-easy-borrowing-in-egypt\/","url_meta":{"origin":598953,"position":4},"title":"Are we at the long-awaited age of easy borrowing in Egypt?","author":"enterpriseam admin","date":"25 December 2019","format":false,"excerpt":"The CBE has signaled it wants to make it easier for consumers to borrow. Will corporate appetite pick up in tandem? The CBE\u2019s monetary easing policy and four interest rate cuts this year were simply the opening salvo to a series of decisions and policies designed to expand lending. The\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2017\/8\/785.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":598992,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/06\/16\/are-emerging-markets-looking-set-for-a-wave-of-interest-rate-cuts-this-month\/","url_meta":{"origin":598953,"position":5},"title":"Are emerging markets looking set for a wave of interest rate cuts this month?","author":"enterpriseam admin","date":"16 June 2019","format":false,"excerpt":"Good news for Egyptian debt: Other emerging markets have lowered interest rates \u2014 and more should follow. Russia, Chile and India have lowered their benchmark rates last week as emerging markets struggle with lower than expected growth and a turbulent macro climate. The hint from central bankers in other EMs\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/6\/1152.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/598953","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=598953"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/598953\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/598947"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/598954"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=598953"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=598953"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=598953"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=598953"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=598953"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}