Egypt: Proposal to Amend Strategy for Dealing with Debt

Egypt’s central bank in Cairo (Reuters)
Egypt’s central bank in Cairo (Reuters)
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Egypt: Proposal to Amend Strategy for Dealing with Debt

Egypt’s central bank in Cairo (Reuters)
Egypt’s central bank in Cairo (Reuters)

A member of the Egyptian parliament’s economic committee revealed a proposal to reduce monetary pressure, by addressing the debt problem, in light of the country’s severe currency crisis.

In exclusive remarks to Asharq Al-Awsat, MP Ahmed Samir said that the proposed strategy included a plan to convert Egyptian debts into investments and projects, through an agreement with the International Monetary Fund and the World Bank.

He explained: “If an agreement is reached with these two institutions to reduce Egyptian debt and transfer part of it to projects and investments, as happens with some other countries, this will reflect positively on the Egyptian credit rating.”

According to the Ministry of Finance’s financial report in September, Egypt spent 391.8 billion pounds on debt service in the first two months of the current fiscal year 2023/2024, with a 160-percent increase over the 149.9 billion pounds spent in the same period of the previous fiscal year.

This widened the budget deficit to 3.2 percent of GDP during the first two months, from 1.4 percent the previous year.

Samir said that Parliament’s economic committee was currently studying amending the capital law, to stimulate transactions on the Egyptian Stock Exchange by attracting new companies and increasing local and foreign offerings.

Despite the rise in Egyptian stock market indices over the past weeks, and the main index recording a new high of 24,300 points, supported by foreign purchases in Thursday’s session, the market capitalization of shares of listed companies amounts to 1.6 trillion pounds.

Moody’s, Fitch, and Standard & Poor's, have lowered Egypt’s credit rating, in light of a record rise in sovereign debt and debt service. In its latest report, Moody’s downgraded Egypt’s rating from B3 to Caa1.

In this context, the Egyptian deputy said: “We are currently comparing the Egyptian Stock Exchange to the Saudi Tadawul... Therefore, we see that the trading volume on the Egyptian Stock Exchange should double... We need more liquidity by offering more companies, and that is by increasing the incentives that we are currently studying.”

Egypt had launched the first version of the Sustainable Development Strategy: Egypt Vision 2030, in 2016, as the basis for the comprehensive development process.

In early 2018, the country decided to update its sustainable development agenda with the participation of all stakeholders from development partners, in order to keep pace with the changes that occurred in the local, regional and global context.

The second version of Egypt’s Vision 2030 focused on explaining how the Egyptian contribution will serve the international agenda and the global context.



Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
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Saudi's flynas Strikes Deal for Additional Airbus A320neos, 15 A330s

Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)
Saudi's flynas strikes deal for additional Airbus A320neos, 15 A330s (flynas)

flynas, Saudi Arabia’s leading low-cost carrier, has signed a Memorandum of Understanding (MoU) with Airbus for 75 A320neo family aircraft and 15 A330-900. This strategic agreement will expand the airline's capacity, range and enhance its overall fleet capabilities.
Signed during Farnborough International Airshow in the presence of President of the General Authority of Civil Aviation (GACA) of Saudi Arabia, Abdulaziz bin Abdullah Al-Duailej, Chairman of the Board of NAS Holding Ayed Al Jeaid, flynas Chief Executive Officer & Managing Director Bandar Almohanna, and Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer, Airbus said on its website.
The new aircraft will join the carrier’s all Airbus fleet serving international, domestic and regional routes. The new A330-900 aircraft will boast a two-class configuration, accommodating up to 400 passengers.
"We are excited to further strengthen our long-standing partnership with Airbus," said Bander Almohanna, CEO and Managing Director of flynas. "The A320neo Family provides exceptional operational performance and environmental benefits, allowing us to offer unique, low-cost travel experiences. Additionally, the A330neowill enhance our long-haul capabilities with its advanced technology and efficiency while supporting our growth plans and Saudi Arabia’s pilgrim program."
Airbus Chief Executive Officer, Commercial Aircraft, Christian Scherer said, "We are delighted to expand our partnership with flynas through this significant milestone for both A320neo and A330-900 aircraft. The A330neo will allow flynas to further grow into widebody markets by building on the A320, benefiting from Airbus’ unique commonality. Both aircraft types offer flynas the perfect versatility and economics to expand into new markets while offering their passengers the latest cabin experience and comfort. We look forward to continuing our successful collaboration with flynas as they embark on this exciting new chapter."
The addition of the A330-900 aircraft will support flynas' ambitious growth plans. The airline anticipates significant operational efficiency gains by combining the new widebody aircraft with its existing A320neo fleet. The A330-900 offers increased capacity and range at unrivaled seat costs, ensuring flynas can compete effectively in the growing regional market, a key focus area for the airline.
The A330neo delivers unbeatable operating economics, powered by the latest-generation Rolls-Royce Trent 7000 engines, featuring new wings and a range of aerodynamic innovations resulting in a 25 percent reduction in fuel consumption and CO₂ emissions compared to previous generation competitor aircraft. The A330neo is capable of flying 8,150 nm / 15,094 km non-stop, providing ultimate comfort with more passenger space, a new lighting system, latest in-flight entertainment systems and full connectivity throughout the cabin.
As with all Airbus aircraft, the A330 family is already able to operate with up to 50% Sustainable Aviation Fuel (SAF). The manufacturer is targeting to have its aircraft up to 100% SAF capable by 2030.