“The large devaluation of the currency and increase in interest rates will likely help Egypt maintain an upsized IMF program, reduce the risk of a renewed build-up of external imbalances, and strengthen the economy's shock resilience"
Continued foreign currency shortages, difficult operating conditions, and high asset risks were main contributors to the new outlook, noting that it may impact banks’ operations and place further pressure on various aspects of operations
Fitch Ratings has lowered credit ratings on four Egyptian banks, citing concerns about external financing, macroeconomic stability, and government debt
The minister added that the distribution of the second batch will take place on 19-20 July, while the third batch will be on 2-3 August
The ratings agency wrote that the four banks have “significant exposure” to debt and lending to public-sector companies, with Fitch estimating their debt to reach 75% of their total assets
