Egypt’s external debt down to almost $111bn

Egyptians walk in front of the Egyptian Central Bank in Cairo. (AP)
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Updated 02 September 2020

Egypt’s external debt down to almost $111bn

  • The foreign debts at the end of the first quarter of this year were $20.07 billion in international bonds and $40.3 billion in loans

CAIRO: The Central Bank of Egypt has announced, for the first time in years, a fall in the country’s external debt.

Figures for the first quarter (Q1) of the year showed the deferred payments total to be standing at $111.3 billion compared to $112.7 billion in Q4 of 2019.

A central bank report said the ratio of external debt to the gross domestic product decreased to 31.7 percent, which is considered a safe amount according to international standards.

Banking sources said that the Central Bank of Egypt had paid more than $17 billion in commitments to foreign funds and institutions during March and April, when the coronavirus disease (COVID-19) outbreak was spreading around the world.

Egypt had succeeded in obtaining around $9.7 billion from the International Monetary Fund and international markets between May and June, of which $4.4 billion had already been received with the rest arriving in two installments.

Central data revealed that the balance of long-term external debt decreased by $410 million during Q1, to record $100.975 billion, compared to $101.39 billion last December.

The balance of the debt fell to $10.316 billion by the end of March, compared to $11.28 billion at the end of last year.

Egypt’s foreign debt is split up with $60.4 billion owed by the government (54.27 percent), $27.78 billion by the Central Bank of Egypt (24.96 percent), $8.25 billion by other banks, and $14.85 billion in other sectors.

The external debt owed by the general government shrank by around $1 billion, down by 1.65 percent on a quarterly basis, to record $60.4 billion by the end of March, compared to $61.42 billion in December 2019.

The foreign debts owed by the Egyptian government at the end of the first quarter of this year were $20.07 billion in international bonds and $40.3 billion in loans.

The entire foreign debt owed by the government falls into the category of long-term debt with maturities of more than 12 months.

The monthly bulletin of the central bank revealed that the burdens of external debt service were recorded at around $13.7 billion between July 2019 and March and distributed in instalments valued at $10.6 billion with interest valued at $3.1 billion.

Big week for Big Tech as earnings, hearings loom

Updated 25 October 2020

Big week for Big Tech as earnings, hearings loom

  • The four giants drawing the most scrutiny — Apple, Amazon, Facebook and Google — have been wildly successful in recent years

SAN FRANCISCO: Big Tech is bracing for a tumultuous week marked by quarterly results likely to show resilience despite the pandemic, and fresh attacks from lawmakers ahead of the Nov. 3 election.

With backlash against Silicon Valley intensifying, the companies will seek to reassure investors while at the same time fend off regulators and activists who claim these firms have become too dominant and powerful.

Earnings reports are due this week from Amazon, Apple, Facebook, Microsoft, Twitter and Google-parent Alphabet, whose combined value has grown to more than $7 trillion.

They have also woven themselves into the very fabric of modern life, from how people share views and get news to shopping, working, and playing.

Robust quarterly earnings results expected from Big Tech will “highlight the outsized strength these tech behemoths are seeing” but “ultimately add fuel to the fire in the Beltway around breakup momentum,” Wedbush analyst Dan Ives said in a note to investors.

The results come amid heightened scrutiny in Washington of tech platforms and follow a landmark antitrust suit filed against Google, which could potentially lead to the breakup of the internet giant, illustrative of the “techlash” in political circles.

Meanwhile, Senate Republicans have voted to subpoena Jack Dorsey and Mark Zuckerberg, the chief executives of Twitter and Facebook respectively, as part of a stepped-up assault on social media’s handling of online political content, notably the downranking of a New York Post article purported to show embarrassing information about Democrat Joe Biden.

CEOs of Twitter, Facebook and Google are already slated to testify at a separate Senate panel on Wednesday examining the so-called Section 230 law, which offers liability protection for content posted by others on their platforms.

The four giants drawing the most scrutiny — Apple, Amazon, Facebook and Google — have been wildly successful in recent years and have weathered the economic impact of the pandemic by offering needed goods and services.

Google and Facebook dominate the lucrative online ad market, while Amazon is an e-commerce king.

Apple has come under fire for its tight grip on the App Store, just as it has made a priority of making money from selling digital content and services to the multitude of iPhone users.

The firms have stepped up lobbying, spending tens of millions this year, and made efforts to show their social contributions as part of their campaign to fend off regulation.

“For the most part, tech companies know how to do this dance,” said analyst Rob Enderle of Enderle Group.

“They don’t spend a lot of time bragging about how well they have done any more.”

Ed Yardeni of Yardeni Research said the outlook for Big Tech may not be as rosy as it appears.

“For one, regulators at home and abroad are gunning to rein in some of the largest US technology names,” Yardeni said in a research note.

Of interest to the market short-term will likely be whether backlash about what kind of content is left up and what is taken down by online titans causes advertisers to cut spending on the platforms.

Economic and social disruption from the pandemic also looms over tech firms, which benefitted early in the pandemic as people turned to the internet to work, learn, shop and socialize from home.

“Performance will be best for those providing solutions for people working at home,” analyst Enderle said.

Amazon, Google and Microsoft each have cloud computing divisions that have been increasingly powering revenue as demand climbs for software, services and storage provided as services from massive datacenters.

Amazon has seen booming sales on its platform during the pandemic, and viewing surge at its Prime streaming television service.

Enderle expressed concern that with the coronavirus disease (COVID-19) cases and a lack of new stimulus money in the US, tech companies could reveal in forecasts that they are bracing for poorer performance in the current quarter.