Egypt Secures $2bn Repurchase Transaction from Global Banks

The Central Bank of Egypt has reached a deal to secure $2 billion in financing from global banks, the bank said in a statement Thursday.

    The central bank "initiated a repurchase transactio

n with a consortium of international banks for funding of $2 billion with a maturity of one-year," the statement said.

    The funds were provided by the banks against "Egyptian dollar-denominated sovereign bonds recently issued by the finance ministry in Ireland's stock market with maturities of December 2017, November 2024, and November 2028." The financing "bolsters the bank's international reserves and reflects international banks' confidence in Egypt's reform programme," the central bank said.

    The terms were reached a day before the International Monetary Fund’s board meets to decide on a $12 billion loan package Egypt received initial approval of.

    Officials say the new IMF loan will help regain investor confidence in Egypt's economy, battered by years of political turmoil since the 2011 uprising drove away foreign inventors and tourism, two key sources of foreign currency, according to (Ahram Online).

    Egypt's reserves fell by over $500 million from September to reach $19 billion at the end of October