Egypt to seek foreign debt issuance to overcome budget shortfall

19 Sep 17

Egypt will face a $10-12bn budget shortfall for the current 2017-18 fiscal year and plans to issue further foreign debt to overcome it, the country’s finance minister has said.

At the annual Euromoney Egypt Conference yesterday, Amr El-Garhy said economic reforms were ongoing.

El-Garhy told Daily News Egypt: “The ministry eyes all alternatives to bridge the gap. We consider all options to bridge this gap including going back to international debt market again.”

Cairo received a $12bn bailout loan from the International Monetary Fund in November following reforms to reduce the deficit and public debt.

“We want to do 6% [growth] in the longer term and in a sustainable way. Historically we make reforms and then two to three years later we fall into a trap and make mistakes,” the finance minister said at the Euromoney conference.

El-Garhy said the country plans to issue $8bn in dollar-dominated bonds, but did not give details on a timetable, according to Reuters.

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