Arab Today, arab today arabs may buy egyptian debt to cut yields
Last Updated : GMT 05:45:26
Arab Today, arab today
Arab Today, arab today

Arabs may buy Egyptian debt to cut yields

Arab Today, arab today

Arab Today, arab today Arabs may buy Egyptian debt to cut yields

Cairo - Arabstoday

Arab governments or their investment arms may soon buy Egyptian treasury bills to help the government reduce the highest borrowing costs since 2008, Egypt’s Deputy Prime Minister Hazem El Beblawi said.Egypt is in talks with Saudi Arabia and the United Arab Emirates to buy the instruments, El Beblawi, who is also the country’s finance minister, said in an interview in Washington yesterday, where he is attending the annual meetings of the International Monetary Fund and the World Bank.“It can materialize anytime but we have not yet finalized the agreement,” he said. “We are really concerned about increasing interest rates.”The chaos accompanying this year’s popular revolt that toppled President Hosni Mubarak has battered tourism revenue, weakened the pound and prompted foreign investors to cut holdings of government debt. The Central Bank of Egypt canceled the sale of two- and three-year bonds on Sept. 19 after domestic investors demanded yields that authorities deemed high, according to a government official who declined to be identified.Egypt raised 7.5 billion pounds ($1.3 billion) through the sale of six-month and one-year treasury bills on Sept. 22. The average yield on 182-day notes advanced 10 basis points, or 0.1 percentage point, to 13.338 percent, the highest since October 2008, according to central bank data on Bloomberg. The average yield on one-year securities rose six basis points to 13.882 percent, the data show.Foreign investors sold a net $7.1 billion of mainly treasury bills in the first half of the year according to central bank data. That left domestic banks to finance a budget deficit that the government is aiming to shrink to 8.6 percent of gross domestic product in the fiscal year through June 2012, from an estimated 9.5 percent in the previous 12 months.“There isn’t enough competition,” El Beblawi said.The government isn’t planning to sell international bonds because of public “apprehension when it comes to foreign borrowing, though economically speaking it might be wise,” El Beblawi said.The yield on Egypt’s 5.75 percent dollar bond due in April 2020 has tumbled since it peaked at 7.07 percent at the height of the anti-Mubarak revolt on Jan. 31.It surged 40 basis points today, the most since January, to 5.89 percent at 4:14 p.m. in London according to data compiled by Bloomberg, amid investor concerns about global economic slowdown. The pound was unchanged at 5.9730 per dollar.The country is now in the final stages of talks with Saudi Arabia and the United Arab Emirates for about $5 billion in loans to support the budget and finance projects, El Beblawi said. The finance minister’s predecessor turned down a $3 billion loan from the IMF in June within three weeks of negotiating it.While Egypt hasn’t requested a new loan from the IMF, El Beblawi said he told the fund the government has no “inhibitions” and will consider “all their ideas on how to help.” The government has completed agreements to borrow $400 million from the World Bank to finance railway and irrigation projects, El Beblawi said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today arabs may buy egyptian debt to cut yields Arab Today, arab today arabs may buy egyptian debt to cut yields

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: اقتصاد عربي
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Reasons for the delay 'On the Stairs of Servants'

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 01:04 2017 Tuesday ,28 February

Nokia 3310 is back — and so is 'Snake'

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday