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Hilbroy Advisory: International Monetary Fund to lend Egypt $3 billion to help economy after revolt
Hilbroy Advisory: International Monetary Fund to lend Egypt $3 billion to help economy after revolt
The loan grants Egypt a grace period of three years and three months followed by five years to pay it back.
Montreal,
Quebec,
Canada
(prbd.net)
06/06/2011
Montreal, Quebec, June 3rd, 2011– Hilbroy Advisory Inc. (DeutcheBörse: 2H0) Hilbroy Advisory Reports: "Egypt announces the end of negotiations with the IMF and the clinching of an agreement with the fund to relaunch the Egyptian economy," Mr. Radwan said.
The two parties agreed to a "$US3 billion loan over 12 months... with an interest rate of 1.5 per cent," he said, adding that the loan would help partly offset a budget deficit of $US28 billion.
The loan grants Egypt a grace period of three years and three months followed by five years to pay it back.
The Egyptian economy, which depends in large part on tourism, has seen a dramatic drop in tourist arrivals and near zero economic growth during and after the revolt that ousted former president Hosni Mubarak in February.
Tens of thousands of Egyptian workers in Libya, who used to send money back to their families in Egypt, also had to flee the conflict in the neighboring North African nation.
Egypt, which estimates it needs between $US10 billion and $US12 billion in international funding to keep it going until mid-2012, was courting loans worth roughly $US6 billion from the IMF and the World Bank.
Cairo has said two Gulf countries would also help boost Egypt's economy.
Saudi Arabia has pledged $US4 billion in aid in the form of long-term loans and grants, while Qatar pledged to invest $US10 billion, according to Egyptian authorities.
"The agreement between Egypt and the IMF is very positive. Egypt obtained the loans it needs to finance its budget deficit under very generous terms, particularly the grace period and interest rate," said Mahmud Abdel Fadil, economy professor at Cairo University.
The IMF said in a report to the leaders of the G8 meeting in France last month it was prepared to lend about $US35 billion to oil-importing countries in the Middle East and North Africa.
On Thursday, the IMF welcomed the Egyptian cabinet's approval of the 2011/2012 draft budget.
"The measures go in the right direction of supporting economic recovery, generating jobs and assisting low income households, while maintaining macroeconomic stability."
Mr. Radwan on Wednesday announced the lifting of the minimum monthly wage to £700 in the country where regime-changing protests were partly fuelled by economic woes earlier in the year.
The new minimum wage is still considered a pittance as inflation hovers at around 12 per cent and unemployment at 11.9 per cent in the country of 80 million.
Tourism has already recorded $US2.2 billion in losses since the revolt began in January and unrest has cost the treasury more than $US1 billion, officials say.
About Hilbroy Advisory Inc.
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
Our specialists will customize a service package that includes reviewing, identifying and recommending a series of specific action and tasks that help their clients’ management decisions when seeking
• Go Public strategy,
• Debt and or equity financing
• Identify prospective investors
• Hire investor relations firm
• Cross listing decisions
• Planning road-shows and promotional campaigns.
Hilbroy Advisory has established numerous international relationships over the years with Broker Dealers, Hedge Funds, Institutional Investors, High net worth Investors as well as with investor relations firms and consultants. These relationships are made available to all Hilbroy clients and our team will manage the relationships from introduction to post financing activities.
Contact:
Jean François Amyot
HilbroyAdvisory, Inc.
1400 rue Begin
Montreal, QC H4R 1X1
info@hilbroyadvisory.com
www.hilbroyadvisory.com
Tel: 514-334-3131
Important Information About Forward-Looking Statements
All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates", "believes", "could", "expects", "intends", "may", "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.
A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.
About
Hilbroy Advisory Inc. is a Canadian based advisory and consultancy services company founded in 2000. Our Company provides publicly traded and private companies, institutions and individuals with a series of advisory services enabling these companies to fully reach their corporate objectives and potential.
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