“Al-Shihabi”: Resurrection "Fitch" Raising Egypt’s credit rating confirms the improvement in Egyptian economic indicators
Nagy Al-Shihabi, head of the Democratic Generation Party, considered that Fitch had raised Egypt’s long-term foreign currency credit rating from B – to B with a stable outlook, for the first time in a year 2019 is a positive indicator, confirming the improvement in Egyptian economic indicators after the Ras El Hekma deal, which increased foreign exchange inflows by $24 billion, raising foreign exchange reserves to $44.5 billion, in addition to increasing indirect investments in the bond market.< /p>
He explained that this reflects Egypt’s ability to fulfill its obligations and pay its debts, whether they are loan installments or their interest, on the specified dates, and this was evident in the decline in Egypt’s foreign debts by $15 billion, according to what the Prime Minister announced and confirmed by a report Central Bank.
Al-Shehabi stressed that although most of the ratings of credit rating agencies have political objectives linked to the policies of the International Monetary Fund towards countries that request its assistance or borrowing from it, lifting the agency Fitch, raising Egypt’s credit rating gives a message of reassurance to investors and increases their confidence, by improving its economic conditions, financial stability, and ability to repay debts, and it enables the state to borrow money at lower interest rates, as it is a safer bet, and this reduces the cost of servicing the national debt and strengthens the national currency and makes it more Stability.
The head of the Generation Party explained that raising Egypt’s credit rating, may achieve the government’s goal of increasing foreign investment, which leads to supporting economic growth, creating job opportunities and enhancing hard currency reserves, in addition to Financial stability and the increase in cash reserves reflect the steadfastness of the national economy in the face of global economic challenges, which enhances Egypt’s position before investors and international financial institutions.
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