I wish Egypt and Egyptians well, but have fears their
problems are just going to keep getting worse which
will keep the whole area further unsettled.
The military and El Sisi need to be more frugal
and open the economy to let it grow.

from
https://www.reuters.com/world/africa/moodys-downgrades-egypt-deeper-into-junk-territory-2023-10-05/

Moody's downgrades Egypt deeper into junk territory
Reuters
October 5, 20233:11 PM PDTUpdated 2 days ago

A general view of Cairo skyline during sunset
A general view of Cairo skyline during sunset, with foggy cold weather
around the country, Cairo, Egypt February 2, 2023. REUTERS/Amr Abdallah
Dalsh/File Photo Acquire Licensing Rights

Oct 5 (Reuters) - Moody's on Thursday downgraded Egypt's credit rating
by a notch to 'Caa1' from 'B3', citing the country's worsening debt
affordability.

Egypt has been facing an economic crisis with record inflation and a
chronic foreign currency shortage, and a borrowing spree over the last
eight years has made external debt repayments increasingly onerous.

"Moody's expects the materialization of asset sale proceeds at the
central bank to help restore the economy's foreign currency liquidity
buffer," the credit rating agency said, placing Egypt's outlook at 'stable'.

The outlook reflects the agency's expectation that Egypt will have
continued access to official financial support from the International
Monetary Fund under its $3 billion arrangement.

Egypt has imposed import restrictions to remedy the shortage of foreign
currency, while at least two national banks have suspended the use of
Egyptian pound debit cards outside the country to stop a drain on
foreign currency.

The country, which is preparing for elections in December, devalued its
currency by more than half in the year to March.

Reporting by Sri Hari N S and Anandita Mehrotra in Bengaluru; Editing by
Shinjini Ganguli

Our Standards: The Thomson Reuters Trust Principles.

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