Aug 24, 2014

Suez Canal GICs

Was discussing the Suez Canal GICs this morning with a few bankers, they were discussing delays in issuance and yet another revision of the funding approach for this project. If anyone heard otherwise please advice.
1-There is a delay in the issuing of the Suez Canal GICs due to strong objections by small banks that only a couple of state banks (NBE, BM) are allowed to sell these GICs. The smaller (private) banks are afraid this monopoly would cause an exodus to state banks. They have escalated with CBE and awaiting response as it is unfair for state to guarantee for some but not all banks.
2- These GICs are supposedly not pay back any interest or coupons for the first two years
Regardless of my assessment of the need for, or even the merits and risks with this project, what I find most frustrating and idiotic is that even in the projects the government sees as a priority they completely lack of foresight and planning on how to bring such projects to life, whether that has to do with financing, supply chain or other operational components.
Such basic ineptness, combined with thorough dependance on propaganda, continues to waterdown the very little confidence in this government's ability to bring any real change to the economic well being of the citizens of this country.
I really hope that there are many instances, that I have failed to notice, of smart policy being developed and implemented.