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Tuesday, 21 February 2017

Investors Union claims CBE agreement at hand; Automakers have been slashing prices; Investment Act may pass in a month (inshallah); Angela Merkel could be here soon

Hona Al Assema’s Lamees Al Hadidi spoke on Monday’s meeting between the CBE and the Union of Egyptian Investors Association on settling LC-debt incurred by companies following the EGP float (the details of which can be found in the Speed Round). She interviewed Mohamed Khamis Shabaan, head of the Sixth of October Investors Association, who claims the CBE informed them that companies whose debts exceed to USD 5 mn — which are carrying 88% of the LC-debt out there — owe a combined USD 600. He adds that the banks will be repaid in EGP (watch, runtime: 6: 55).

A number of automakers have reportedly agreed to begin offering discounts on cars even before the Finance Ministry agreed to lowered the customs FX rate 11% to EGP 16.5 to the USD 1, El-Sabaa Automotive Group’s chairman Alaa El-Sabaa tells Lamees. The industry has been cut prices on cars an average of about 10% to stimulate buying amid flagging sales (watch, runtime: 8:01).

Over on Kol Youm,GAFI head Mohamed Khodeir tells host Amr Adib that the Investment Act will pass the House in about a month’s time. GAFI will begin hearings on the law next Tuesday, he added (watch, runtime: 5:16). House Economic Committee chair Amr El Gohary told Adib that the law only arrived at the committee’s doorstep last week. “We finished studying 60-70% of the draft law by ourselves,” he said. Wow. All by yourselves. You deserve little gold stars to take home to Mommy and Daddy. (watch: runtime: 5:02).

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