Approaching $15 billion.. 3 Gulf countries extend the terms of their deposits with Egypt

Three Gulf countries extended the terms of their deposits with Egypt, as the total deposits of 3 Gulf countries (UAE, Kuwait and Saudi Arabia) in the Central Bank of Egypt amounted to $14.961 billion by the end of June 2022.

The value of Gulf deposits in the Central Bank is distributed as follows $5.661 billion from the UAE, $5.3 billion from Saudi Arabia, and $4 billion from Kuwait.

Kuwait deposit

The report on the external situation of the Egyptian economy for the past fiscal year (July 2021-June 2022) indicated that the State of Kuwait renewed a tranche worth $2 billion for a year ending in April 2023 out of a total deposit of $4 billion in the Central Bank of Egypt.

According to the report of the Central Bank of Egypt, with a value of $ 2 billion, was due to be paid by Egypt in April of this year 2022, while the report indicated that it will be renewed for a period of one year, to be paid in April 2023.

Saudi Arabia deposit

Saudi Arabia pledged in March to provide $15 billion to support Egypt, including $5 billion as a deposit in the Central Bank, which was renewed a few days ago for another year, about 4 months before maturity, along with $10 billion to be invested in Egypt through the acquisition of stakes in companies listed on the Cairo Stock Exchange.

Transforming debts into investments 

Moncef Morsi, co-head of the research department at "CI Capital", considers that "the early renewal of the Saudi deposit sends a signal to investors and international institutions that part of the foreign debts expected to be repaid next year has become deferred."

The Kingdom's government statement upon the renewal of the deposit indicated that "it is hoped that it will contribute to opening new financing channels with regional and international organizations, including facilitating the completion of the International Monetary Fund program agreement."

Emirates deposits

  The Central Bank of Egypt also showed, through a report on the external situation of the Egyptian economy, that the United Arab Emirates extended the terms of two tranches of a $2 billion deposit in the Central Bank of Egypt due to be paid by Egypt in 3 tranches (at a value of $666.6 million per tranche).

The Central Bank of Egypt report stated that one of the two tranches was extended for a year and the other for a period of two years, while the term for the third tranche of the deposit remained the same, explaining that the deposit amounted to $ 2 billion, the payment of the first tranche of which was extended for a year to April 21 of 2023 instead of 21. April this year.

The Central Bank also stated in its report on the external situation of the economy, that the second tranche was extended to April 21, 2025 instead of April 21, 2023, while the third tranche remained at the same maturity date on April 19, 2024.

The report issued by the Central Bank of Egypt indicated that the last tranche of Emirati deposits will be paid in the second half of 2026.