Finance Minister Hany Kadry Dimian said, in a press conference Saturday that Egypt plans to issue US$1-1.5 billion in Eurobonds in the second quarter next year to finance its funding gap.
The issuances will not be guaranteed by a sovereign, the minister said, adding that the international market’s response to the issuances is likely to be positive with pricing very favourable.
Egypt will repay a $2.5 billion deposit to Qatar at the end of November, bringing to $6 billion the deposits it has returned to the Gulf Arab gas exporter since last year's ouster of Islamist President Mohamed Mursi, a central bank source said.
Qatar had helped prop up the Egyptian economy in the aftermath of the 2011 uprising that overthrew Hosni Mubarak and eventually brought Mursi and his Muslim Brotherhood to power in the country's first democratic elections.
Egypt repaid a $500 million deposit in October and has another $500 million outstanding, which is due to be repaid in the second half of 2015, the source told Reuters.
Egypt's budget deficit reached EGP 255.4 billion – 12.8% of GDP – in the fiscal year 2013/14, according to final figures announced by the Finance Minister. The minister announced that the budget deficit in the fiscal year ending on 31 June 2014 did not achieve its initial target as plans for fiscal consolidation did not materialize. Revenues amounted to EGP 456 billion, 24% lower than budgeted, due to overestimates based on unattained procedures, mainly subsidy cuts and tax reform, the minister noted, adding that this was overcome by Gulf aid.
An Egyptian government source told Reuters on Thursday that Cairo had received earlier in the week a $1 billion grant from Kuwait, the latest in billions of dollars of aid to arrive from Gulf Arab allies since Mursi's removal.
Kadry said earlier that his country is suffering a financing gap reaching $11 billion during the current fiscal year.
The Arab world's most populous country has been trying to repair an economy battered by political upheaval, street protests and militant violence since a popular uprising toppled autocrat Hosni Mubarak in 2011.
President Abdel Fattah El-Sisi's government has started implementing politically sensitive economic reforms such as slashing energy subsidies and raising taxes in a bid to narrow the budget deficit and gain the confidence of foreign investors. (written by Amr Adel; translated by Sayed Abdel Rahman)
The issuances will not be guaranteed by a sovereign, the minister said, adding that the international market’s response to the issuances is likely to be positive with pricing very favourable.
Egypt will repay a $2.5 billion deposit to Qatar at the end of November, bringing to $6 billion the deposits it has returned to the Gulf Arab gas exporter since last year's ouster of Islamist President Mohamed Mursi, a central bank source said.
Qatar had helped prop up the Egyptian economy in the aftermath of the 2011 uprising that overthrew Hosni Mubarak and eventually brought Mursi and his Muslim Brotherhood to power in the country's first democratic elections.
Egypt repaid a $500 million deposit in October and has another $500 million outstanding, which is due to be repaid in the second half of 2015, the source told Reuters.
Egypt's budget deficit reached EGP 255.4 billion – 12.8% of GDP – in the fiscal year 2013/14, according to final figures announced by the Finance Minister. The minister announced that the budget deficit in the fiscal year ending on 31 June 2014 did not achieve its initial target as plans for fiscal consolidation did not materialize. Revenues amounted to EGP 456 billion, 24% lower than budgeted, due to overestimates based on unattained procedures, mainly subsidy cuts and tax reform, the minister noted, adding that this was overcome by Gulf aid.
An Egyptian government source told Reuters on Thursday that Cairo had received earlier in the week a $1 billion grant from Kuwait, the latest in billions of dollars of aid to arrive from Gulf Arab allies since Mursi's removal.
Kadry said earlier that his country is suffering a financing gap reaching $11 billion during the current fiscal year.
The Arab world's most populous country has been trying to repair an economy battered by political upheaval, street protests and militant violence since a popular uprising toppled autocrat Hosni Mubarak in 2011.
President Abdel Fattah El-Sisi's government has started implementing politically sensitive economic reforms such as slashing energy subsidies and raising taxes in a bid to narrow the budget deficit and gain the confidence of foreign investors. (written by Amr Adel; translated by Sayed Abdel Rahman)
Source:
Mubasher Exclusive
