The World Bank said eventual monetary tightening in advanced economies could crimp growth in emerging markets as interest rates rise, lowering the nations' potential output by as much as 12 percent. That long-term risk is likely greater than the short-term impact from volatility in emerging market currency and bond markets, as traders try to position themselves for when the U.S. Federal Reserve begins its exit from ultra-loose monetary policies, said Kaushik Basu, the World Bank's chief economist. Basu was speaking ahead of the launch of the bank's twice-yearly Global Economic Prospects report on Wednesday. The report argued that the euro area and fiscal uncertainty in the United States are receding as major risks to the global economy. Instead, developing nations have to be on guard against side effects from aggressive monetary expansion in advanced nations. Japan launched a massive bond-buying program in April to prod the economy out of decades of stagnation, raising fears Japanese investors would flood into emerging markets in search of higher yields and cause overheating. At the same time, global markets were battered this week as traders tried to read the tea leaves of when the U.S. central bank will decide to start winding down its own stimulus measures. More»

Banque De Caire is planning to inject US$ 140 million in form of 3 dollar-dominated syndicated loans in the banking market. The loans are arranged for the Egyptian Chemical Industries- KIMA and Delta Co for Fertilizations and Chemical Industries as well as another Islamic loan for Maridive and Oil Services (MOIL.CA). Informed source said, in exclusive statements to Amwal Al Ghad, Banque De Caire will be injecting US$ 75 million for KIMA out of a loan totaled at US$ 423 million, whereas the loan is designated for financing the renovation of KIMA’s Ammonium Nitrate and Fertilizer factory, in addition to establishing a new factory in Aswan with total costs of US$ 787 million. The source also pointed out that the bank has agreed to inject US$ 40 million in Delta Co. for Fertilizations and Chemical Industries’ loan, allocated to fund the renovation of its affiliated factories in addition to constructing a new factory. Furthermore, Delta Co. will employ part of the funding in buying a new cement production line within the upcoming period, with the contribution of the National Bank of Egypt (NBE), Banque Misr, Commercial International Bank (CIB) and Arab African International Bank (AAIB). Last week, Banque De Caire injected US$ 25 million to Maridive’s loan which is allocated to finance new expansions, restructure,  and new investments. More»

The loan’s arrangers, included National Bank of Egypt (NBE), Banque Misr & Banque De Caire, have agreed to pump EGP 700 million as additional funding for Ezz Steel’s EGP 1.8 billion loan to reach EGP 2.5 billion. Informed sources, in exclusive statements to Amwal Al Ghad, said that tomorrow the banks shall sign the loan’s final contracts with the participation of 12 banks so as to pay the loan’s first segment. It is worth mentioning that the loan is allocated to finance factory for Steel Rolling Mill in Ain Sokhna, Suez. Ezz Steel, before the eruption of 25th January Revolution, withdrew EGP 900 billion out of the loan’s total value. Ahmed Ezz, one of the dissolved National Party’s symbols, was fined EGP 600 million because of the Steel License was against the law. More»

Egyptian Banking Institute will be organizing a seminar on Wednesday, entitled “The Developmental Role of Specialized Banks within the Framework of the Universal Banking". The Seminar is to arouse discussions about the activation of banks’ role in providing the universal banking without losing its identity, main orientation or giving up its developmental stance. The seminar will  be held in the presence of a number of banking leaders represented in Mr. El-Sayed El-Kosayer; chairman of Industrial Development and Workers Bank of Egypt (IDWBE), Mr. Abdel Megid Mohy El-Din; chairman of Egyptian Arab Land Bank (EALB) and Mr. Mohamed Ismail; chairman of Export Development Bank of Egypt as well as Mr. Fathy El Sebai; chairman of Housing & Development Bank (HDB) and Mr. Alaa Samaha; chairman of Principal Bank for Development and Agricultural Credit (PBDAC). More»

The National Bank of Egypt, Banque Misr and Commercial International Bank are studying to grant Railway Equipment Factory - SEMAF, affiliate of Arab Organization for Industrialization credit facilities worth € 96 million (about EGP 912 million). Informed sources said, in exclusive statements to Amwal Al Ghad, that the loan shall be allocated to develop 212 wagons. Whilst the banks are working in order to finish the studies of the funding. The sources pointed out that one or two bank may enter the alliance to fund SEMAF's loan besides NBE, Banque Misr and CIB. The sources added that the banks' shares have not been set yet and it is expected to be determined after reaching the final form of the funding structure. It is worth mentioning that, in 2004 SEMAF has been joined to the Arab Organization for Industrialization (A.O.I).  Whereas SEMAF was established in 1955 for manufacturing and equipping railways rolling stock. In 1958 Freight wagons are produced. In 1969 passenger coaches are produced. Equipping and manufacturing Metro / Tram subway metro in 1978 and in 1988 underground metro are produced. The Arab Organization for Industrialization (AOI) is one of the largest industrial organizations in Egypt. It is State-owned and enjoys an international status that gives it complete flexibility in decision-making. AOI strategies are drawn by a Supreme Committee whose Chairman is the President of Egypt and whose membership comprises several Cabinet ministers. More»