Egypt to sell USD1b in Eurobonds

23 May 2011

(MENAFN) Egypt’s Finance Minister, Samir Radwan, said that due to the political upheaval that badly affected the country’s economy, this year Egypt would sell USD1 billion in five year Eurobonds to diversify borrowing and to finance the growing budget deficit, reported The National.

Radwan added that these bonds would be sponsored by a US sovereign guarantee as part of a US aid package, adding that the country’s budget deficit might increase to 11 percent of gross domestic product (GDP) in the fiscal year that would end June 2012 from a 9.2 percent that was forecasted this fiscal year.

He also said that the country would expand borrowing since the local market was squeezed in order to exploit it as soon as possible.

It is worth noting that the uprising forced President Hosni Mubarak to step down in February. Whereas the unrest that accompanied the popular revolt forced tourists to flee, weakened the pound and raised government borrowing costs.

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