Egypt 

Egypt country policy

Policy established 29 March 2011

• Case-by-case assessment
• The country ceiling is 1500 mln euro
• Early warning signal 1150 mln euro
• - of which was used as at 2011-12-31 13 mln euro

Country class: 5

Restrictions

• Extended DAL (Date of Ascertainment of Loss): 9 months

Overheidskopers: garantie Monetaire autoriteit (Min. Fin., centrale bank (onvoorwaardelijk)

Public buyers: guarantee MoF or central bank

Particuliere kopers: Onherroepelijk accreditief of bankgarantie (voorwaardelijk)

Private buyers: ILC, commercial bank guarantee (conditional)

Gegeven de veiligheidssituatie in Egypte zullen nieuwe verzekeringsaanvragen op Egypte met de nodige terughoudendheid in behandeling worden genomen waarbij vooral een zorgvuldige afweging van het fabricatierisico bepalend zal zijn voor de voortgang van de zaak.

Egypt country facts

Country Report last updated :  November 2th, 2011   Atradius Dutch State Business Economic Research
Country :  EGYPT

Political situation

Uncertain Outcome Elections

Head of state
Mubarak no longer president of the country (he ruled since 1981). New PM and vice president Omar Suleiman (former chief intelligence office). Army in charge.

Form of government
SCAF is governing until new elected civilian government. Legislative elections will take place in November and will be phased out until mid-March. A Country Report last updated for presidential elections has not been decided. Parliamentary elections contain People’s Assembly (lower house with 498 members) and Shura Council (upper house with 270 members). Two-thirds will be elected from party lists and one-third individuals. Two houses together will select 100-member committee to draft new constitution. Draft will be put to referendum and after referendum registration of presidential candiCountry Report last updateds will begin.

Internal Economic Situation
Lower Growth Due Political Instability

General situation
Economic growth expected to decrease to 1.8%, after 5.1% in 2010. More downside risk to economic growth due to political instability. Tourism and investments have been hit. Inflation remains high due to depreciated Epound. In 2011 inflation of 10.8% is expected, in comparison with 11.2% in 2010. Decreasing NPL (still 14% total assets in March 2010). Improved profile financial sector: supervision, regulation, credit to private sector is attracting again.

External Economic Situation
Cautiously Improving / Comfortable LIQUIDITY

Main sources of foreign exchange
Tourism, workers remittances, crude oil, LNG; Suez Canal receipts, foreign aid, ‘non-traditionals’ slightly improving.

Main foreign markets
EU 34%, the US 8% and Middle East states 17%. Merchandise export 20% GDP

Main expenses of foreign exchange
Import of raw materials and capital goods.
 
Balance of payments 
Exports under pressure (lower Suez receipts and lower tourism income). FDI is decreasing. Needs financial assistant (from US and Arab countries (Saudi Arabia, UAE)