Gaza on verge of famine as war escalates, ceasefire talks stall    Gaza crisis, trade on agenda as Trump hosts Starmer in Scotland    Obama calls for aid access to Gaza, says 'no justification' for withholding food    Egyptian president follows up on initiatives to counter extremist thought    Egypt's SCZONE eyes deeper investment, port digitalisation ties with Singapore    Egypt's gold prices slip slightly on July 28th    Egypt's Housing Min. reviews HDP marketing plan    Indian Embassy to launch cultural festival in Assiut, film fest in Cairo    Egypt, South Africa pledge to deepen development cooperation at G20 meeting    Egypt's PM orders road maintenance review, tougher penalties to curb accidents    Egypt, Novartis explore expanding collaboration in oncology, cardiology    Egyptian aid convoy heads toward Gaza as humanitarian crisis deepens    Midar partners with Adeer to develop Boulevard project in Mostakbal City with EGP 70bn investment    Association of Real Estate Developers seeks urgent meeting over threatened land deallocation on Northwest Coast    Culture minister launches national plan to revive film industry, modernise cinematic assets    Sudan's ambassador to Egypt holds reconstruction talks on with Arab League    I won't trade my identity to please market: Douzi    Egypt welcomes 25-nation statement urging end to Gaza war    Sisi sends letter to Nigerian president affirming strategic ties    Egypt, Senegal sign pharma MoU to unify regulatory standards    Two militants killed in foiled plot to revive 'Hasm' operations: Interior ministry    Egypt, Somalia discuss closer environmental cooperation    Egypt foils terrorist plot, kills two militants linked to Hasm group    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 plans to issue eurobonds before end of FY 2017/2018
Foreign investments in T-bills reached $19.8bn at end of last week, says Kouchouk
Published in Daily News Egypt on 31 - 01 - 2018

Marrakesh – Deputy Minister of Finance for Fiscal Policies and Institutional Reform Ahmed Kouchouk said on Wednesday that Egypt intends to issue euro-denominated bonds before the end of the current fiscal year, after completing the issuance in dollars.
Kouchouk told Daily News Egypt, on the sidelines of the International Monetary Fund (IMF) Opportunity for All conference in Morocco, that most of Egypt's European partners show interest in the country.
"The stability of the economic situation sends them a message of confidence," he added.
Kouchouk, however, did not disclose the size of the offering.
Egypt seeks to offer dollar-denominated bonds on the global markets with a value of $3-4bn, amid expectations of lower interest rates compared to the previous two offerings in 2017.
The government borrowed $7bn in the past fiscal year through two issuances, the first in January worth $4bn, while the second took place in May worth $3bn, with maturity periods of five, 10, and 30 years.
As for foreign investments in treasury bills (T-bills), Kouchouk said that foreign investments in them reached $19.8bn at the end of last week.
Since Egypt floated the pound in November 2016, foreign investments in government debt instruments have been rising steadily as the investment environment improves, offering high return.
He noted that foreign investments are now in long-term bonds, with investments also in local currency bonds.
He pointed out that there has been a growing demand on investing in bonds, which reflected on offering lower interest rates on the 10-year bonds, which are now changing hands with return under 6% compared to 7.5% in January 2017, while the 30-year bonds reflected interest down from 8.5% to 7.3%.
Moreover, he said that reducing interest by 1% throughout the year saves the budget EGP 20bn, which is then refunnelled to important sectors, such as health and education.
During his participation in the Opportunity for All: Promoting Growth, Jobs, and Inclusiveness in the Arab World conference in Morocco, Kouchouk said that the reforms in Egypt in the past few years boosted growth to 5% in the first quarter of the current fiscal year, for the first time since 2008. He noted that this period saw the provision of about 275,000 jobs, which is 80% of the jobs created in both fiscal years 2013/2014 and 2014/2015.
Furthermore, Kouchouk said that the reform programme was able to formulate a social security programme in addition to increasing subsidies from EGP 15 to 50 for the most needy, in addition to increasing incomes.
As for the cancellation of energy subsidies for some sectors such as high-intensity energy sectorsm Kouchouk confirmed the impact, but said, "we, however, should not neglect the positive impact: proper pricing of energy and production inputs creates significant opportunities in previously worthless sectors," he added.
For instance, he said, the river transport system witnessed demand from investors, as fair competition now exists, after cost convergence.
He added that he will meet with a number of Moroccan officials to review one of the technical means in the field of linking retail stores and sales in order to ensure a sound tax system, a field in which Morocco has made significant progress.
He welcomed the progress achieved by Egypt in the international budget transparency index, which has become 65, up from 115.
He said that the Ministry of Finance aims to reach the 40th ranking in the budget transparency index in the coming two years.


Clic here to read the story from its source.