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FINANCIAL NEWS
Saudi, Chinese financial support to ease stress on Egypt’s position
03 Feb 2016
(MENAFN) The financial help from KSA and China will ease strains on Egypt’s external situation, and Saudi Arabia will borrow USD 20bn to finance the purchase of oil products.
Moreover, the initiates are credit positive for Egypt because they will help the nation’s balance of payments, which have been under stress from wide merchandise trade deficit.
Additionally, external financial help is moving to loans and investment pledges from sovereign sources from mainly government grants, resulting in grow in future repayment obligations.
However, risks are allayed by Egypt’s low levels of whole external debt of 15.4 percent of GDP at the end of the fiscal year and general governmental external debt of 8.5 percent of GDP.
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