Egypt, Elsewedy review progress on Ain Sokhna phosphate complex    US employment cost index 3.6% up in year to June 2025    Egypt welcomes Canada, Malta's decision to recognise Palestinian state    Pakistan says successfully concluded 'landmark trade deal' with US    Sterling set for sharpest monthly drop since 2022    Egypt, Brazil sign deal to boost pharmaceutical cooperation    Modon Holding posts AED 2.1bn net profit in H1 2025    Egypt's Electricity Ministry says new power cable for Giza area operational    Egypt's Al-Sisi, Italian defence minister discuss Gaza, security cooperation    Egypt's FM discusses Gaza, Nile dam with US senators    Aid airdrops intensify as famine deepens in Gaza amid mounting international criticism    Egypt exports first high-tech potato seeds to Uzbekistan after opening market    Health minister showcases AI's impact on healthcare at Huawei Cloud Summit    On anti-trafficking day, Egypt's PM calls fight a 'moral and humanitarian duty'    Egypt strengthens healthcare partnerships to enhance maternity, multiple sclerosis, and stroke care    Egypt keeps Gaza aid flowing, total tops 533,000 tons: minister    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Culture minister launches national plan to revive film industry, modernise cinematic assets    I won't trade my identity to please market: Douzi    Sisi sends letter to Nigerian president affirming strategic ties    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt's EHA, Huawei discuss enhanced digital health    Foreign, housing ministers discuss Egypt's role in African development push    Egypt reveals heritage e-training portal    Three ancient rock-cut tombs discovered in Aswan    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    Egypt's Irrigation Minister urges scientific cooperation to tackle water scarcity    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 still working on secondary bond market: Fin Min
Published in Daily News Egypt on 09 - 11 - 2010

CAIRO: Egypt is working to develop its secondary market for government securities, but does not plan to require commercial banks to act as market makers anytime soon, the country's finance minister said on Monday.
The government is also considering reopening Eurobonds it has already issued and is drawing up a plan to stimulate Egypt's economy without adding to its budget deficit, the minister said.
Egypt's fixed income secondary market has lagged far behind that of its equity market, with only a handful of Egyptian government and corporate securities trading each day. Analysts say this has pushed up the government's cost of borrowing and reduced options for corporations seeking to raise finance.
"We're trying to promote the secondary market — getting market makers, getting new players, reopening bonds," Finance Minister Youssef Boutros-Ghali said in an interview.
Despite the thin trade, the government did not contemplate requiring the banks it permits to buy government securities directly to resell them on the secondary market at regularly quoted prices, a reform recommended by bond traders.
"To do this, we would need to change some legislation to force them to make markets at given spreads and to force them to have a certain volume per month," Boutros-Ghali said. "We are not contemplating, yet, legislative changes."
Bond traders and businessmen complain that rather than use their depositor funds to lend to private businesses, the 15 commercial banks licensed to deal on the primary market tend to sit on their bonds until maturity as safe and easy investments.
Boutros-Ghali said the government continued to work on other ways to open up the secondary market, including a plan broached a year ago to allow investment banks to buy securities on the primary market.
"We're trying to increase the number of players in the market," he said. "This requires other changes in the law that we're discussing with the central bank."
Egypt has taken a number of measures in the last year to spur fixed-income trade. In January it began letting utilities and other quasi-government organizations issue bonds and in April began letting corporations and other bodies issue bonds in batches once they get approval from the regulator.
Speaking of the international market, Boutros-Ghali said the government was studying a plan to reopen Eurobonds it has already issued.
"We may reopen some of the issues that are out there, just to fluff up the yield curve a bit," he said. "We're doing this mostly for private investors to give them benchmarks in the international marketplace."
Egypt sold $1.5 billion in Eurobonds in April with maturities of 10 and 30 years. It has other global notes maturing in 2011, 2012 and 2015.
Last week, Boutros-Ghali said Egypt was considering issuing a separate 100-year Eurobond.
Boutros-Ghali said the government was also drawing up a stimulus plan that would inject a "significant" amount of additional spending into the economy without increasing the budget deficit.
Egypt's economy grew by 5.1 percent in the year to end-June, up from 4.7 percent in 2008/09 but down from around 7 percent in each of the three years before the global economic crisis.
"Right now, we're thinking of a new stimulus package that is not budget-based. We're going to ease credit facilities for a certain strata of the population, within the banking system, entirely at their own risk," he said. "But I don't want to elaborate too much before I announce it," he added.
The government has adopted three budget-based stimulus packages worth a total 34.2 billion Egyptian pounds ($5.97 billion) since October 2008.


Clic here to read the story from its source.