The Clap
A few days ago, Saudi Arabia renewed its $5 billion deposit in the Central Bank of Egypt for another year, a move lauded by analysts.
What
The deposit will aid in Egypt’s ability to pay off its obligations next year, which go up to $35 billion.
So what
The deposit was renewed under the same terms & conditions agreed at the initial time of deposit, despite Fitch Ratings recently downgrading the outlook for the Egyptian economy, something that would usually increase Egypt’s cost of borrowing.
Now what
Analysts believe Egypt needs patience from Gulf countries for their loans to be repaid as much as the the loan itself.
