Pre-Trading Thoughts

·         Fitch Rating said that Egyptian banks’ Viability Ratings (VRs) could come under pressure, if the banks’ foreign assets continue to drop.·         A group of Gulf banks completed arranging a USD3 billion joint loan for Egypt, equally divided between Islamic and green financing, for a period of 3 years.·         Egyptian Tax Authority said that a draft law approved by Cabinet imposes a lump-sum tax on real estate transactions concluded before May 2013.·         National Bank of Egypt, Banque Misr, Banque de Caire, Arab African Bank, and Export Development Bank started the procedures to establish a joint-stock company to support exports and import substitution, with a capital of EGP250 million. ·         Ethiopian government announced plans to clear 17k hectares of forest in preparation for the third filling of the dam this summer. ·         Apicorp and IsDB) have launched a three-year, USD 1 bn initiative for private-sector focused infrastructure financing, in countries including Egypt.·         FWRY intends to launch an electronic application that provides instalments purchases through its subsidiary Fawry Consumer Finance, with an expected initial portfolio size of EGP30.0 million.·         CBE will allow banks to launch digital lending services via mobile wallets this year. ·         CBE: Volume of credit facilities granted to the largest 100 clients amounted to EGP507.6 billion at the end of June 2021, + 19% YoY.·         President El-Sisi directed to launch an initiative to support the health sector by providing a financing package with interest ranging between 5% and 8%.·         IRAX has restructured debts exceeding EGP12 billion. ·         Taaleem saw a 23.7% y-o-y increase in its bottom line in 1Q2021-2022 to EGP 71.9 mn. TALM is trading at 15x FY22 P/E, based on earnings of EGP240 mn. ·         OCDI shareholders will vote on the company’s new board of directors at an extraordinary general meeting today.·         The Grand Egyptian Museum could open its doors in 2H22.·         The Supreme Council for Wages received many requests from tourism companies to exempt them from paying the minimum wage until the end of 1Q2022.