Egypt eyes multiple debt issuance options to prolong domestic debt maturity

Updated 10/1/2024 3:01:00 PM

Arab Finance: The Egyptian government is exploring several options for debt issuance while working to extend the maturity of its domestic debt, Deputy Minister of Finance Minister Yasser Sobhi revealed.

Sobhi also confirmed that the government has secured its current financial needs, giving it time to evaluate new debt offerings.

These remarks were made by Sobhi during the closing session of the "Portfolio Egypt 2024" conference.

During the conference, Mark Michel, Customer Success Manager at London Stock Exchange Group, praised Egypt's successful international bond issuances, including Samurai bonds with a low yield of 1.5%.

For her part, Reham El-Desoki, an economist and policy advisor, noted that interest rates in Egypt are unlikely to drop rapidly due to regional tensions.

She also asserted the need for Egypt to fully eliminate subsidies by 2025 as part of its commitments to the International Monetary Fund (IMF), stressing the importance of gradually implementing these changes to avoid negative impacts.

During the opening session of the conference, Minister of Finance Ahmed Kouchouk outlined the ministry's priorities for improving the economy. These priorities focus on three main areas: debt management, enhancing the private sector’s role, and supporting productive sectors.

Moreover, the minister highlighted the government's efforts in creating opportunities for the private sector with the recently announced tax relief measures.

Additionally, Secretary-General of the Arab Federation of Capital Markets Rami El-Dokany announced that trading volumes in Arab markets valued at around $700 billion during the first eight months of 2024, rising by 85% as compared to the year-ago period.

As for the UN Special Envoy on Financing the 2030 Agenda Mahmoud Mohieldin, he emphasized the importance of using new indicators in artificial intelligence (AI) and green tools to attract investments.