Cairo - In a report issued this Sunday, Goldman Sachs predicted that Egypt would face a foreign currency financing gap estimated at about $25 billion over the next four years, due to the increase in the repayment of medium and long-term debt installments.
The report indicated that Egypt's financing gap has widened due to upcoming installments and excluded that the additional financing Egypt will obtain under the new agreement with the International Monetary Fund (IMF) would fully meet these needs.
Egypt has recently reached an agreement in principle with the IMF on a new deal that could increase the current support from $3 billion. Goldman Sachs assumes that the total additional financing from the fund will reach $12 billion, leaving a remaining financing gap of $13 billion.
The bank emphasizes the importance of the new deal in restoring confidence in Egypt’s external financing prospects and reassuring the markets. However, the details of the agreement and whether it will be sufficient to meet Egypt's future needs remain a topic ofdiscussion among investors.
According to the report, the remaining financing gap should be bridged through other sources, including proceeds from the sale of some government assets and alternative financing strategies such as securitization of future cash flow receivables, especially remittances from workers abroad.
