Cairo — Mubasher: Egypt’s Ministry of Finance (MoU) has set a plan to issue 10-year and 30-year bonds, according to a senior government official.
The proceeds of these long-term bonds will be used to settle short-term debt notes with three-month and nine-month maturity as of the next fiscal year in a bid to slash the state budget’s debt allocations, Enterprise reported on Sunday, citing the source.
Egypt’s fiscal year begins in July and ends on 30 June.
“We have spoken to our international partners and found very high interest from foreign investors, domestically and internationally, in long-term securities,” the source said.
The planning ministry is working on setting a limit to domestic and overseas borrowing, he noted, adding that the government is now targeting a budget deficit of 7% and gross domestic product (GDP) growth of 6.1% for FY 19/20.
In late February, the finance ministry issued dollar-denominated Eurobonds, including five-year, 10-year, and 30-year notes, worth a combined of $4 billion with significant yields.
For his part, the finance deputy minister said that the bonds’ proceeds would be used to finance the state’s general budget, noting that that the government is working on diversifying sources of finance.
