Moody’s rating boost for Egypt

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International credit rating agency, Moody’s, has raised Egypt’s banking system outlook from stable to positive.

Moody’s cited an improving operational environment after the International Monetary Fund supported an ambitious economic reform plan.

Moody’s has anticipated real gross domestic product growth to reach 5.5% in 2019, from 4.2% in 2017.

“Increased domestic private sector investment, large infrastructure projects, as well as higher exports will drive economic growth and credit demand,” said Moody’s assistant vice-president Melina Skouridou.

Egypt started a reform program after president Abdel-Fattah al-Sisi took office four years ago.

The government has since substantially reduced subsidies, imposed a value-added tax and allowed a major currency devaluation in an attempt to qualify for a $12bn bailout loan from the International Monetary Fund. The loan was secured two years ago.

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