Issuing bonds for the Egyptian General Petroleum Corporation (EGPC) will highly contribute to providing liquidity for the Corporation, said Mohamed Younes, general manager of corporate credit and syndicated loans department at Banque Misr.
Concerned efforts shall be made to make Egypt recover its good credit rating in the upcoming period after the successive downgrades made to its credit rating after the turmoil that followed 2011’s revolution, he affirmed.
Downgrading the country’s credit rating affects Egypt’s position in the negotiations over borrowing from international financial institutions, in addition to shaking investors’ confidence in the Egyptian market, he warned.
On the sidelines of the roundtable held under the title of “Financing Petroleum Sector”, he added that few banks financed the petroleum sector in Egypt in the last period, but the successful financing processes attracted many banks to finance such sector.
The petrochemical and petroleum sectors are of the most sectors which received foreign finances recently. However, petroleum research and exploration face funding difficulties because they are considered high-risk investments, he added.
