CAIRO – 1 November 2018: Recording a 20% decline, the Finance Ministry is expected to issue debt instruments worth LE 153.5 billion this November; a decline from October’s LE 192 billion.
Additionally, the ministry will issue treasure bonds and bills worth LE 5.5 billion and LE 148 billion, respectively, in November.
In a move to expand its investor base and increase the influx of investment, Egypt has launched an international campaign to promote its bonds in Asia and Europe. This move, aimed at increasing liquidity, is expected to reduce public debt by reducing the high yields required on government securities.
Previously, Amr el-Garhy, former Finance Minister, has stated that the ministry is aiming to reduce pubic debt from the recorded 107-108% in fiscal year 2016/2017 to 80% by 2020. This 28% decrease is expected to come as a result of the ministry’s plan to decrease budget deficit, increase average per capita income, and achieve a primary surplus of 2% of gross domestic product (GDP).
By the end of 2017, the total public debt recorded LE 3.4 trillion, the central bank of Egypt (CBE) revealed, stating that it represented 83.8% of the GDP.
In 2018/2019 budget, the public debt is expected to be lowered to 91% of GDP.