Egypt is in talks with the International Monetary Fund on augmenting its rescue program to over $5 billion, according to people familiar with the discussions, confident it can overcome the roadblocks facing its existing package by addressing concerns including its currency policy.
(Bloomberg) — Egypt is in talks with the International Monetary Fund on augmenting its rescue program to over $5 billion, according to people familiar with the discussions, confident it can overcome the roadblocks facing its existing package by addressing concerns including its currency policy.
Any announcement on a potential increase from the $3 billion secured last year would only come after Egypt completes its two delayed program reviews, said the people, who asked not to be identified as the matter is confidential. No decision has yet been made, they said.
Leaders of the global economy are in Marrakech, Morocco for the annual meetings of the World Bank and International Monetary Fund to discuss challenges including poverty reduction, climate change and lifting the debt burden of the poorest nations. The ongoing Israel-Hamas war is adding additional uncertainty to the global outlook.
Africa To Feel Impact Of Slowing China, IMF Says (11:15 a.m.)
Sub-Saharan Africa’s growth will be hit by China’s slowing economy, the International Monetary Fund said, urging countries in the region to do more to adapt to slowing import demand and declining Chinese economic engagement.
A one percentage point decline in China’s real GDP growth rate leads to about 0.25 percentage point decline in in sub-Saharan Africa’s total GDP growth within a year, IMF economists including Hany Abdel-Latif wrote in a report. Oil exporters would experience the largest impact, it added.
IMF Aims to Cut Time for Creditor Assurance (10:11 a.m)
The International Monetary Fund’s chief set an ambitious target to reduce the time needed to agree on deals to help poorer nations in debt distress, following criticism it’s been taking too long to aid the world’s neediest nations.
Managing Director Kristalina Georgieva said she wants to reduce to just 2-3 months the time between when countries with distressed debt reach a staff-level deal with the institution to when they secure the creditor assurances needed for loan approval.
Visco Says Italy Spreads Don’t Require Intervention (9:31 a.m.)
Italy’s widening bond spread levels aren’t worrying and won’t require intervention from the European Central Bank, Governing Council member Ignazio Visco said.
“There are no signs really,” the Italian central bank chief told Bloomberg TV. If central bank intervention were needed, “I think we can” do so, he said Friday in Marrakech.
World Bank Head Seeks Record Help Aiding Poorest Nations (9:20 a.m.)
World Bank President Ajay Banga urged the lender’s members to make record contributions in the next funding round for its arm that helps the 75 poorest nations, warning of declining progress in the fight against poverty.
“We are pushing the limits” of the International Development Association, Banga said in Marrakech, Morocco, according to remarks prepared for the plenary of the bank’s annual meeting Friday. “No amount of creative financial engineering will compensate for the fact that we need more funding.”
Deutsche Bank Sees Hard Times for Commercial Property (09:06 a.m.)
Chief Executive Officer Christian Sewing said commercial real estate is facing tough times in the years ahead as higher interest rates roil the market.
The asset class “will actually go through more difficult timing for the next couple of years,” Sewing told Bloomberg TV’s Francine Lacqua in an interview from Marrakech. That’s because of higher rates and a trend for increased home office work in the wake of the Covid pandemic, he said.
Yellen to Meet With PBOC Governor Pan Gongsheng on Friday (02:12 a.m.)
US Treasury Secretary Janet Yellen will meet with People’s Bank of China Governor Pan Gongsheng to discuss macroeconomic and financial developments in their two countries and globally.
They will meet on the sidelines of the annual IMF and World Bank meetings in Marrakech, Morocco at 9:30 a.m. local time, according to her daily schedule.
G-20 Finance Chiefs Omit Specific Mention of Israel-Hamas War (00:04 a.m.)
Group of 20 finance chiefs agreed on a communique that didn’t mention the Israel-Hamas war, the latest sign of the forum’s struggle to address conflicts seen as threats to the global economy.
The statement provided late on Thursday by the G-20 secretariat, which is helmed this year by India, comes on the eve of the end of an official meeting this week in Morocco.
IMF Bungles Zambia Deal Announcement by Front-Running Accord (Oct. 12, 7:19 p.m.)
Zambia is close to signing an agreement to reorganize its loans with official creditors, the International Monetary Fund said, clarifying an earlier comment by the lender’s managing director.
The parties are close to finalizing the $6.3 billion deal reached in principle in June, which would pave the way for the disbursement of another portion of a $1.3 billion IMF extended credit facility. IMF chief Kristalina Georgieva earlier on Thursday said that the accord with official creditors, co-led by China and France, had been signed.
–With assistance from Abeer Abu Omar, Jana Randow, Christopher Condon, Mirette Magdy, Martha Beck, Kamil Kowalcze, Ana Monteiro, Eric Martin and Craig Stirling.
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