Tags: Egypt | stock | cash | turmoil

Egypt Repatriates Half of Stock Cash Owed to Foreign Investors

Thursday, 13 Mar 2014 12:56 PM

Egypt said it paid 50 percent of “outstanding” cash owed to foreign investors who sold their stock holdings amid the country’s political turmoil.

The country will “very soon” pay the remaining funds owed, central bank Governor Hisham Ramez said by phone. Half of the backlog paid today was covered by “direct sales to the investors’ custodians,” the bank said later in a statement on its website.

MSCI Inc. said in June it may be forced to exclude the Arab world’s most populous state from its emerging-market indexes if the foreign-exchange market worsened and investors were unable to repatriate cash. The funds owed accumulated during political turmoil after the 2011 uprising against Egypt’s President Hosni Mubarak, which saw foreign reserves plunge. Investors “refrained from utilizing” a repatriation mechanism, the central bank said, causing the backlog.

“This is something that has been keeping many investors off the stock market because it took them an extended period to get their money out of the country,” Mohamed Abu Basha, an economist at EFG-Hermes Holding SAE, Egypt’s biggest investment bank, said by phone from Dubai. “It’s positive that they clear half of the queue but the underlying problem still exists.”

Egypt in March last year “reinforced” a repatriation fund introduced in 2000, the central bank said in the statement. The fund has facilitated investor exits, Ramez said. The EGX 30 benchmark index is the third-best performing gauge among more than 90 tracked by Bloomberg this year, adding 20 percent.

© Copyright 2017 Bloomberg News. All rights reserved.

 
1Like our page
2Share
Markets
Egypt said it paid 50 percent of "outstanding" cash owed to foreign investors who sold their stock holdings amid the country's political turmoil.
Egypt,stock,cash,turmoil
244
2014-56-13
Thursday, 13 Mar 2014 12:56 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved