{"id":626889,"date":"2018-07-15T03:59:09","date_gmt":"2018-07-15T03:59:09","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/15\/govt-in-talks-with-global-lenders-for-long-term-facilities\/"},"modified":"2018-07-15T03:59:09","modified_gmt":"2018-07-15T03:59:09","slug":"govt-in-talks-with-global-lenders-for-long-term-facilities","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/07\/15\/govt-in-talks-with-global-lenders-for-long-term-facilities\/","title":{"rendered":"Gov\u2019t in talks with global lenders for long-term facilities"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>EXCLUSIVE- Maait says global macro headwinds and outlfows from Egyptian debt instruments push gov\u2019t to seek long-term facilities:<\/strong> The Madbouly government is in talks with international finance institutions line up longer-term facilities that will help plug Egypt\u2019s financing gap, Finance Minister Mohamed Maait told Enterprise over the weekend.<\/p>\n<p><strong>Who are we going to borrow from? <\/strong>Maait singled out the World Bank, the African Development Bank, the French Development Agency, and the Japan International Cooperation Agency, but stopped short of specifying how much Egypt was looking to borrow, noting the talks are ongoing. <strong>Maait is looking for tenors of up to 30 years<\/strong> with interest rates of 1-2%. Maait confirmed that long-term, lower cost facilities will be the main borrowing instruments for the government during the current fiscal year.<\/p>\n<p><strong>Unstable global macro environment behind the move:<\/strong> Maait intimated that the changing global macro climate had played a significant role in the decision. He said government borrowing costs were at risk of rising thanks to portfolio outflows from emerging market (the EM zombie apocalypse), EM contagion from Argentina, as well as the US Federal Reserve\u2019s plan to continue raising interest rates. He also noted that higher oil prices remained a threat to meeting this year\u2019s budget targets.<\/p>\n<p><strong>No eurobonds this year?<\/strong> As a result of higher interest rates in the US, \u201cit would be inappropriate for us to issue foreign-denominated bonds,\u201d Maait said. We will continue to observe the market and make a decision in the future. Government officials have previously stated that the Egypt would look to borrow USD 6-7 bn in international bond offerings in FY2018-19.<\/p>\n<p><strong>How bad are outflows from Egyptian debt instruments? USD 4-5 bn, say bankers: <\/strong>Egypt saw up to USD 5 bn in outflows from its debt market as a result of the broader emerging market selloff, several banking <a href=\"https:\/\/af.reuters.com\/article\/egyptNews\/idAFL8N1U84F7\">sources told Reuters<\/a>. \u201cThis is part of a <strong>general concern among investors in emerging markets and not anything specific to Egypt.<\/strong> There is less demand than usual and portfolio managers are giving emerging markets lower limits,\u201d a Cairo-based banker said. Yields on Egyptian treasuries cooled on Thursday, after 10-year treasuries peaked last week to 17.859%. \u201cThe high yields are a reflection of tighter liquidity dynamics, especially within emerging markets in which Egypt is a part,\u201d CI Capital\u2019s Hany Farahat <a href=\"https:\/\/af.reuters.com\/article\/egyptNews\/idAFL8N1U84F7\">tells Reuters<\/a>.<\/p>\n<p><strong>But this was all expected, right? <\/strong>Enter the always-on-point Mohamed El-Erian, who told the <a href=\"https:\/\/www.ft.com\/content\/8afa6d3c-8688-11e8-96dd-fa565ec55929?tagToFollow=9fcbd277-102b-4669-b9ee-502c81922ab3\">Financial Times<\/a> yesterday that \u201ctechnical\u201d investors in EM \u201cwould be a driving factor behind the performance of EM assets in [the] coming months. \u2018This is a technically unbalanced asset class,\u2019 he said. \u2018The dedicated players are much smaller than the crossover players, and the capital allocated on the debt side is much more flighty than in other markets.\u2019\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>EXCLUSIVE- Maait says global macro headwinds and outlfows from Egyptian debt instruments push gov\u2019t to seek long-term facilities: The Madbouly government is in talks with international finance institutions line up longer-term facilities that will help plug Egypt\u2019s financing gap, Finance Minister Mohamed Maait told Enterprise over the weekend. Who are we going to borrow from? [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"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":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-626889","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"379c97b7-9014-407d-996b-cdfbfcc3635d","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[626884],"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>Gov\u2019t in talks with global lenders for long-term facilities - 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\/2018\/07\/15\/govt-in-talks-with-global-lenders-for-long-term-facilities\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Gov\u2019t in talks with global lenders for long-term facilities\" \/>\n<meta property=\"og:description\" content=\"EXCLUSIVE- Maait says global macro headwinds and outlfows from Egyptian debt instruments push gov\u2019t to seek long-term facilities: The Madbouly government is in talks with international finance institutions line up longer-term facilities that will help plug Egypt\u2019s financing gap, Finance Minister Mohamed Maait told Enterprise over the weekend. Who are we going to borrow from? 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Speaking at the Future of Investment in Egypt conference, Maait said that Egypt\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":571283,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/06\/budget-deficit-could-widen-to-7-8-due-to-covid-19-maait\/","url_meta":{"origin":626889,"position":3},"title":"Budget deficit could widen to 7.8% due to covid-19 -Maait","author":"enterpriseam admin","date":"6 May 2020","format":false,"excerpt":"Budget deficit could widen to 7.8% due to covid-19 -Maait: Egypt\u2019s budget deficit could widen to 7.8% of GDP in FY2020-2021 if the covid-19 pandemic continues until the end of the year, Finance Minister Mohamed Maait warned yesterday. The government currently expects to narrow the deficit to 6.3% in FY2020-2021.\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\/2020\/5\/48.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":575371,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/10\/13\/egypts-state-revenues-withstand-egp-220-bn-shortfall-in-fy2019-2020-maait\/","url_meta":{"origin":626889,"position":4},"title":"Egypt\u2019s state revenues withstand EGP 220 bn shortfall in FY2019-2020 -Maait","author":"enterpriseam admin","date":"13 October 2020","format":false,"excerpt":"State revenues took a EGP 220 bn hit in FY2019-2020 due to the pandemic, Finance Minister Mohamed Maait told Hapi Journal at the Regional Forum for Medical Insurance and Healthcare yesterday. The virus outbreak has placed government finances under pressure as the three-month lockdown in the second quarter hit tax\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":573389,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/04\/egypt-eyes-4-6-budget-deficit-82-5-debt-to-gdp-ratio-by-2023-maait\/","url_meta":{"origin":626889,"position":5},"title":"Egypt eyes 4.6% budget deficit, 82.5% debt-to-GDP ratio by 2023 -Maait","author":"enterpriseam admin","date":"4 August 2020","format":false,"excerpt":"Gov\u2019t eyes 4.6% budget deficit, 82.5% debt-to-GDP ratio by 2023 -Maait: Egypt is looking to narrow the budget deficit to 4.6% by FY2022-2023, down from 7.8% in FY2019-2020, Finance Minister Mohamed Maait said in an interview with Oxford Business Group. 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