Egypt to rely on local market for financing
Egypt has no plans to issue an international bond currently and will rely on local market to meet its financing requirements, the country's finance minister said on Wednesday. When asked if the country was looking at an international bond sale, Hazem El-Beblawi said, "International markets? No. Internal? We issue bonds regularly, locally." He also said inflation in the North African country is “relatively under control” at a meeting of Arab finance ministers in the United Arab Emirates capital Abu Dhabi.
Egypt's central bank kept its benchmark interest rates on hold last month reflecting continued concern about inflation and analysts expect rates to remain unchanged. "Inflation is relatively under control but we have to be vigilant and follow vigilant policies to avoid uncontrolled financial situations," Beblawi said.
The North African country's economy has been hard hit by popular uprising that ousted Hosni Mubarak earlier this year and kept investors on the sidelines. The economy contracted in the first six months of 2011 and growth is projected to remain weak in the second half. "The main problem is for stability to return which will reassure investors from the inside and outside, basically a return to normality, which we are getting close to rapidly," Beblawi said.
Egypt plans to finance its budget deficit for the fiscal year that began on July 1 mainly by selling LE 120 billion in domestic treasury bills and bonds after the ruling military council turned down a $3 billion funding package that the Finance Ministry had sealed with the IMF. It plans to auction LE 12 billion of treasury bills on Thursday and Sunday, its central bank said.
- Why Kuwait budget spending is up 8% year-on-year in April-Jan
- Twist of fate: Middle East fund managers shy away from Turkey, warm up to Egypt
- 'Let them eat cake'...or in the case of Egyptians, shall we say 'pasta'?
- In flux: What's up with Dubai's stock market?!
- GCC banks could face capital and liquidity shortfall
- Egypt says IMF options is still open, has not made any formal requests for funds
- Lebanon: Government to tap local market in issuing $5 billion in new bonds
- Citigroup Best Debt House in the Middle East, Best Investment Bank in Egypt
- IFC guarantees first Saudi corporate bond issue
- Al-Watany Bank of Egypt approves EP500 million bond offering