Egypt's PM heads to Japan for TICAD 9 Africa development summit    National Council for Childhood reviews plan to combat child labour    Egypt's Supreme Organ Transplant Committee strengthens oversight, standards    Indian tourist arrivals to Egypt jump 18.8% in H1-2025: ministry data    African agribusiness market expected to reach $1tr by 2030    Price cuts underway across Egypt, says trade federation report    Zelenskyy seeks US security guarantees as Trump says he can 'end war now'    Israelis protest for hostage deal amid growing pressure on Netanyahu    Serbia's Vucic vows 'tough measures' against protesters after unrest    Egyptian pound down vs. US dollar at Monday's close – CBE    Egypt's FM, Palestinian PM visit Rafah crossing to review Gaza aid    Egypt delivers over 30 million health services through public hospitals in H1 2025    Egypt recovers collection of ancient artefacts from Netherlands    Egypt harvests 315,000 cubic metres of rainwater in Sinai as part of flash flood protection measures    Egypt, Namibia explore closer pharmaceutical cooperation    Fitch Ratings: ASEAN Islamic finance set to surpass $1t by 2026-end    Renowned Egyptian novelist Sonallah Ibrahim dies at 88    Egyptian, Ugandan Presidents open business forum to boost trade    Al-Sisi says any party thinking Egypt will neglect water rights is 'completely mistaken'    Egypt's Sisi warns against unilateral Nile measures, reaffirms Egypt's water security stance    Egypt's Sisi, Uganda's Museveni discuss boosting ties    Egypt, Huawei explore healthcare digital transformation cooperation    Egypt's Sisi, Sudan's Idris discuss strategic ties, stability    Egypt's govt. issues licensing controls for used cooking oil activities    Egypt to inaugurate Grand Egyptian Museum on 1 November    Egypt's Sisi: Egypt is gateway for aid to Gaza, not displacement    Greco-Roman rock-cut tombs unearthed in Egypt's Aswan    Egypt reveals heritage e-training portal    Sisi launches new support initiative for families of war, terrorism victims    Egypt expands e-ticketing to 110 heritage sites, adds self-service kiosks at Saqqara    Palm Hills Squash Open debuts with 48 international stars, $250,000 prize pool    On Sport to broadcast Pan Arab Golf Championship for Juniors and Ladies in Egypt    Golf Festival in Cairo to mark Arab Golf Federation's 50th anniversary    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    A minute of silence for Egyptian sports    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Egypt to let brokers buy bonds to create market
Published in Daily News Egypt on 01 - 10 - 2009

CAIRO: Egypt's Finance Ministry has given its approval for brokerage companies to directly buy government bonds, officials said, a step towards developing a secondary bond market for corporate and state debt.
Bonds are now bought mainly by banks, who rarely resell them. A secondary market would help in pricing debt and make bonds more attractive to buyers, thus making it easier for companies to raise funds, investment bankers said.
The creation of a bigger market should also help push down the cost of borrowing for both the government and corporations.
"There is a proposal, that the minister of finance has agreed upon in principle, for a system of primary dealers in the bond market where brokers qualified in this field would work, Minister of Investment Mahmoud Mohieldin told reporters.
The government has appointed one brokerage, Cairo-based Beltone Capital, to be the first to buy government bonds on the primary market for resale on the secondary market, said Mohammed Assaad, adviser to the Minister of Finance for Public Debt Management.
Beltone would begin buying the bonds within one or two months as a trial before other brokerage firms are brought in. It could nonetheless be a year and a half before a fully functioning secondary bond market is up and running, Assaad told a conference.
"We are trying to amend the bond program. We have been trying to do [this] for last two years, he added. "It's not easy to implement.
Among problems confronting the market are how settlements are made, legal issues and the way bonds are taxed, he said.
Mohieldin, speaking to reporters on the sidelines of the conference, said Egypt was working with the World Bank and the International Finance Corporation to develop a legal framework for a secondary bond market.
It was also working with international companies to increase the number of debt rating agencies operating in Egypt, a move that would help local corporations issue bonds, he said.
As companies began issuing the bonds, the government through the stock exchange and the investment authority would help to market them.
"A number of regional banks and others are seeking to do issuances, and that is something we welcome, because if you finance projects in Egyptian pounds, you want to issue bonds in Egyptian pounds in the Egyptian market, Mohieldin said.
By creating a bigger market, it decreases the cost of borrowing and brings down the cost of capital through the economy, said Simon Kitchen of EFG-Hermes.
"Foreigners would like a more liquid market so they can get in a out quickly, he said. "Insurance and pension funds would like to buy long-term government bonds to match their long-term obligation.


Clic here to read the story from its source.