Telecom Egypt, the nation’s state-controlled telecommunications provider, is in the process of securing a $150 million loan aimed at restructuring its existing debts and extending their maturity, as reported by Asharq Business. Sources familiar with the negotiations expect the deal to be concluded within the next two months.
This loan is distinct from another financial maneuver the company is undertaking, where it seeks EGP 18 billion ($369 million) to manage its overdraft balance and transition its short-term debts to long-term in response to a recent hike in interest rates. This adjustment comes in the wake of the Egyptian central bank’s decision last March to increase interest rates by approximately 600 basis points, bringing the average lending rate to 28.25%.
Amid these financial strategies, Telecom Egypt reported a significant increase in its financial performance, with consolidated revenues rising 35% year-over-year to EGP 38 billion and net profits after taxes reaching EGP 6.5 billion. The company’s active pursuit of financial restructuring reflects its efforts to stabilize its financial position in a challenging economic environment.
