The Credit Rating Agency FITCH issued the annual evaluation on the credit worthiness of Egyptian economy while the evaluation of local currency is fixed on BBB and evaluation of currency in the long and medium term is fixed on XBB and B respectively. FITCH referred to the remarkable progress witnessed by the economic reforms in Egypt during the past period aiming at solving many structural problems that lasted for many years.

The statement confirmed the improvement of many indicators of macroeconomics topped by increasing the real economic growth rates to 6% while decreasing the annual inflation rate to 3% in addition to the remarkable progress of the program of managing the state-owned assets which led to increase confidence of investors in the Egyptian economy. Said confidence has led to increase the net direct foreign investment in Egypt during the year 2005. The process of offering Bank of Alexandria represents an important step taken by the government, since more than ten years, for the sake of Egyptian financial sector reform.

The agency referred to the existence of some challenges that shall be met in the coming period including the development of data bases in some authorities to guarantee adoption of the applied international standards and regulations. The statement said the government should put on top of its priorities the issue of controlling the State budget deficit in the coming period. It noted that implementation of the suggested unified budget account law will affect positively control of the public fund and then decreasing the public debt in future. The statement also hailed the political developments and elections in the year 2005 as having positive effect on the economic activity.

13/5/2006