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FINANCIAL NEWS
Uncertainity for Egypt’s economy
06 Jul 2013
(MENAFN) Egypt’s crumbling public finances may be in even worse shape than previously estimated.
While stock and bond markets have cheered the ouster of unpopular President Mahammad Mursi by the army and Egypt’s debt insurance costs have tumbled, data shows that financial risks are about to escalate.
The central bank’s net hard currency reserves, which a country needs to pay for imports, are in negative territory if upcoming short-term obligations are included, indicating a looming funding crunch for Egypt unless it quickly accesses external aid.
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