Fitch's report of 30 January stated that "Egypt's downgrading reflects balance between
short-term reserve pressure, political upheaval, a weak and deteriorating fiscal position and capital flight, against our assumption that an IMF programme will be in place after the election.
This "reflects a balance between
short-term reserve pressure, political upheaval, a weak and deteriorating fiscal position and capital flight against our assumption that an IMF programme will be in place after" parliamentary elections expected this spring.
Other banks can then borrow these funds in order to meet their own
short-term reserve requirements.
Our
short-term reserve is dedicated to planned capital expenditures and to taking advantage of well-defined unplanned opportunities when they arise.
Although the decision not to draw from the IMF and some other multilateral lenders increases the risk of continued
short-term reserve pressure, pledges from bilateral lenders have begun to crystallize and should help stabilize reserves.
For most associations, the
short-term reserve exists to sustain normal operations during a temporary downturn, without having to resort to dramatic cutbacks or dues increases.
All countries should be developing policies that address their own systems and that help in growing
short-term reserves.
Fuel companies said they had
short-term reserves to get them through the current situation difficulties.
The plan offers three age-based portfolios, which automatically adjust asset allocations among stocks, bonds and
short-term reserves as a child approaches college age.
SAVINGS: Try to build up
short-term reserves in tax-exempt savings accounts (TESSAS) or deposit accounts, which could provide a cushion in the event of redundancy.
The Target Retirement Funds are designed to reach an allocation of 65% bonds, 30% stocks and 5%
short-term reserves within seven years after their target date.
Furthermore, the association's operating and
short-term reserves represented less than one month's budgeted expenses, causing bank overdrafts and the need to liquidate long-term investments in seasonal periods of cashflow shortages.
