Egyptian Finance Minister Mohamed Maait said that Moody’s changing the future outlook of the Egyptian economy from negative to positive paves the way for it improving Egypt’s credit rating.
He added that this is considered a certificate of confidence in managing the macroeconomic during this stage full of challenges.
A Finance Ministry statement confirmed that Moody’s listed the bold measures taken by Egypt, which would help cover the financing gap until 2025/2026 and eliminate waiting lists for demand of the US dollar.
The statement pointed out that Moody’s anticipates that transferring a portion of UAE deposits in Egypt to foreign direct investment would improve the situation of the banking sector.
The Finance Minister said that the ministry’s leaders are intensifying contact with other rating institutions and global investment circles to explain all these reforms and the government’s plans.
Maait assured that the government is committed to protecting low-and middle-income families, and taking social measures to mitigate the impact of the economic policies followed.
The government also has a plan to begin reducing the debt-to-domestic product ratio to less than 80 percent within the next three years.
The Vice Minister of Finance for Fiscal Policies Ahmed Kouchouk explained that the government will continue implementing the state ownership policy document and enhance competition between the private and public sectors, which contributes to strengthening the role of the private sector in leading economic growth, in addition to canceling any preferential tax treatment for all state-owned companies.
Economic expert Fouad Abo-Stet explained that changing the outlook of international institutions is a normal process, especially after announcing the Ras al-Hikma deal and ensuring a large flow of funds for investment in Egypt.
This contributed to increasing the foreign reserve rate and the possibility of providing foreign currency for the accumulated orders of the banking sector for importers and producers, he noted.
The former Dean of the Faculty of Economics and Political Science at Cairo University Alia al-Mahdi explained that Moody’s amendment to Egypt’s future outlook indicates that it believes that the new deals will work to maintain cash flows in the future.
