Global stock markets crash not to affect Egypt's int'l bonds issuance: Official

CAIRO – 6 February 2018: The crash of the global stock markets since the end of the last week will not affect Egypt’s program to issue international bonds worth $4-5 billion and will have no effect on the rates of their revenues, said a reliable source at the Central Bank of Egypt (CBE).

The CBE source told MENA on Tuesday that although the global stock markets have witnessed sharp decline over the past few days and the US treasury bonds have hit record highs since 30 years, Egypt’s international bonds will be issued according to the set timetable.

There is growing confidence in the Egyptian economy, especially in light of its meaningful economic reform program which was praised by major international financial institutions, the source noted.

Such confidence was reflected through coverage of the Egyptian bonds that were issued in the past year, with more than $7 billion raised, the source pointed put.

Egypt has proved utter commitment to paying its financial dues on time, the source said, adding that it has paid around $30 billion of its financial commitments and foreign debts during 2017.

Prime Minister Sherif Ismail discussed earlier with Finance Minister Amr el-Garhy the issuance of international bonds worth $4-5 billion within the coming week.

Garhi said on Monday that the interest rate on international bonds has declined due to improvement in the performance of the Egyptian economy.

He added that the interest rate on 10-year bonds reached 5.7 percent down from 7.5 percent while interest rate on 30-year bonds dropped from 8.5 to 7.2 percent