{"id":652131,"date":"2017-01-02T04:06:19","date_gmt":"2017-01-02T04:06:19","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/"},"modified":"2017-01-02T04:06:19","modified_gmt":"2017-01-02T04:06:19","slug":"cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/","title":{"rendered":"CBE keeps interest rates on hold, allows companies to repay foreign currency debt over as many as to three years"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-02\"><\/a> <strong>CBE leaves interest rates unchanged, says it already moved preemptively:<\/strong> The central bank\u2019s Monetary Policy Committee (MPC) decided to keep interest rates unchanged during its last meeting of 2016, moving <a href=\"http:\/\/www.reuters.com\/article\/egypt-cenbank-rates-idUSL5N1EO2T3\">with market expectation<\/a>. The overnight deposit rate remains at 14.75% and the overnight lending rate at 15.75%. The CBE had increased rates by a total of 550 bps during the year.<\/p>\n<p>\u201c<strong>Annual inflation is expected to narrow after being impacted by transitory cost push factors stemming from the economic reform measures<\/strong>,\u201d the MPC explained in <a href=\"http:\/\/www.cbe.org.eg\/Highlights%20Documents\/MPC_press%20release%20December%202016.pdf\">one of its most thorough statements<\/a> (pdf). Looking ahead, the central banks sees \u201cdevelopments in the external environment show that there has been some firming of international commodity prices, while low global inflation and subdued global growth maintain weak pressures on domestic prices, respectively\u2026 broad and reserve money growth are likely to be impacted going forward by the phasing out of monetary financing of the fiscal deficit as well as by relatively higher foreign reserves accumulation. Moreover, broad money growth is strongly affected by the revaluation effects of its foreign currency components.\u201d <strong>The MPC reiterated it will not hesitate to adjust the rates to ensure price stability in the medium term<\/strong>, adding that it had acted preemptively on 3 November to raise the rates by 300 bps.<\/p>\n<p><strong>\u2026The central bank also had some good news for local companies:<\/strong> Egyptian companies unable to repay USD-denominated debt after the EGP float will be allowed to negotiate fixed exchange rates with banks, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2016-12-28\/egypt-offers-exchange-rate-relief-to-firms-hit-by-pound-float\">Bloomberg<\/a>reported. \u201cCompanies need to negotiate individually with lenders to agree on a fixed exchange rate that will be used to finance their debts, Federation of Egyptian Industries [FEI] Deputy Chairman Tarek Tawfik said in a phone interview, citing an agreement with the central bank.\u201d Companies had called for intervention saying banks are asking them to pay for letters of credit initiated before the EGP was devalued at post-float exchange rates. The FEI also said the agreement with the CBE allows for outstanding foreign currency debts to be repaid in instalments over one to three years, according to <a href=\"http:\/\/english.ahram.org.eg\/NewsContent\/3\/12\/254025\/Business\/Economy\/Egypts-central-bank-allows-local-companies-to-repa.aspx\">Ahram Online<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>CBE leaves interest rates unchanged, says it already moved preemptively: The central bank\u2019s Monetary Policy Committee (MPC) decided to keep interest rates unchanged during its last meeting of 2016, moving with market expectation. The overnight deposit rate remains at 14.75% and the overnight lending rate at 15.75%. The CBE had increased rates by a total [&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-652131","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"efa3a738-f24d-4b73-8ba4-85444bc60407","order":"0","is_powered_by":true,"section_story_id":"8267c7f1-e89d-4a43-a631-6a77472306dc","story_type":"1","photo_url":"","photo_position":"above","related_issue":[652122],"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>CBE keeps interest rates on hold, allows companies to repay foreign currency debt over as many as to three years - 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\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CBE keeps interest rates on hold, allows companies to repay foreign currency debt over as many as to three years\" \/>\n<meta property=\"og:description\" content=\"CBE leaves interest rates unchanged, says it already moved preemptively: The central bank\u2019s Monetary Policy Committee (MPC) decided to keep interest rates unchanged during its last meeting of 2016, moving with market expectation. The overnight deposit rate remains at 14.75% and the overnight lending rate at 15.75%. The CBE had increased rates by a total [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/\" \/>\n<meta property=\"og:site_name\" content=\"EnterpriseAM Egypt\" \/>\n<meta property=\"article:published_time\" content=\"2017-01-02T04:06:19+00:00\" \/>\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=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/\"},\"author\":{\"name\":\"enterpriseam admin\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#\/schema\/person\/ca597032db7e4db868359c123cec256d\"},\"headline\":\"CBE keeps interest rates on hold, allows companies to repay foreign currency debt over as many as to three years\",\"datePublished\":\"2017-01-02T04:06:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/\"},\"wordCount\":358,\"publisher\":{\"@id\":\"https:\/\/enterpriseam.com\/egypt\/#organization\"},\"keywords\":[\"EnterpriseAM\",\"SPEED ROUND\"],\"articleSection\":[\"Speed Round\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/\",\"url\":\"https:\/\/enterpriseam.com\/egypt\/2017\/01\/02\/cbe-keeps-interest-rates-on-hold-allows-companies-to-repay-foreign-currency-debt-over-as-many-as-to-three-years\/\",\"name\":\"CBE keeps interest rates on hold, allows companies to repay foreign currency debt over as many as to three years - 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The 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\/2020\/5\/169.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":599519,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/01\/02\/central-bank-of-egypt-leaves-interest-rates-unchanged-at-final-mpc-meeting-of-2018\/","url_meta":{"origin":652131,"position":1},"title":"Central Bank of Egypt leaves interest rates unchanged at final MPC meeting of 2018","author":"enterpriseam admin","date":"2 January 2019","format":false,"excerpt":"The Central Bank of Egypt left key interest rates on hold last Thursday, citing global monetary policy tightening, trade wars and volatility in the oil market. The bank\u2019s monetary policy committee left the overnight deposit and lending rates at 16.75% and 17.75%, respectively, and also left on hold its main\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":567288,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/19\/against-analyst-expectations-central-bank-of-egypt-keeps-rates-on-hold\/","url_meta":{"origin":652131,"position":2},"title":"Against analyst expectations, Central Bank of Egypt keeps rates on hold","author":"enterpriseam admin","date":"19 January 2020","format":false,"excerpt":"CBE leaves rates on hold: The Central Bank of Egypt\u2019s Monetary Policy Committee (MPC) left interest rates unchanged when it met on Thursday, the CBE said in a statement (pdf). The central bank cited domestic factors such as inflation accelerating in December on the back of the dissipating favorable base\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\/1\/632.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":596953,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/14\/cbe-plays-it-safe-and-leaves-rates-on-hold-in-july\/","url_meta":{"origin":652131,"position":3},"title":"CBE plays it safe and leaves rates on hold in July","author":"enterpriseam admin","date":"14 July 2019","format":false,"excerpt":"CBE plays it safe and leaves rates on hold: The Central Bank of Egypt\u2019s Monetary Policy Committee (MPC) left key interest rates unchanged on Thursday, the CBE said in a statement (pdf). The MPC left the overnight deposit and lending rates at 15.75% and 16.75%, respectively, and kept the main\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":595265,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/22\/enterprise-poll-central-bank-of-egypt-could-cut-interest-rates-again-this-week\/","url_meta":{"origin":652131,"position":4},"title":"Enterprise Poll: Central Bank of Egypt could cut interest rates again this week","author":"enterpriseam admin","date":"22 September 2019","format":false,"excerpt":"SURVEY- The Central Bank of Egypt (CBE) could cut benchmark interest rates by 50-150 bps when its Monetary Policy Committee (MPC) meets this Thursday, according to seven of eight economists polled by Enterprise. The economists cited the unexpected inflation rate in August, which dropped to the lowest level in six-and-a-half\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":573592,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/08\/11\/enterprise-poll-central-bank-of-egypt-to-leave-rates-on-hold-in-august-2020\/","url_meta":{"origin":652131,"position":5},"title":"Enterprise Poll: Central Bank of Egypt to leave rates on hold in August 2020","author":"enterpriseam admin","date":"11 August 2020","format":false,"excerpt":"ENTERPRISE POLL- CBE likely to leave rates on hold when it meets this Thursday: The Central Bank of Egypt (CBE) will leave interest rates on hold when its Monetary Policy Committee (MPC) meets this Thursday, according to an Enterprise poll. 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