On the 17th of May, the credit rating agency Fitch downgraded the Issuer Default Ratings (IDRs) and Viability Ratings (VRs) of four major Egyptian banks to “B” from “B+”. The downgrade also comes at a moment when the debt crisis seems to be deepening, with pressure from President Abdel Fattah el-Sisi’s allies mounting and no financial aid appearing in sight. Second is a change in personnel for those responsible for managing the Egyptian economy. For this reason, the regime is not only facing a sovereign debt crisis, but a banking crisis as well. Indeed, as long as the sovereign debt crisis remains unresolved, this scenario continues to become more likely, threatening catastrophic consequences for the Egyptian economy and the mass of the citizenry.

Source: The North Africa Journal June 16, 2023 05:56 UTC