Asharq Al-awsat English https://aawsat.com/english Middle-east and International News and Opinion from Asharq Al-awsat Newspaper http://feedly.com/icon.svg

Egypt to Lengthen Average Maturity on Debt to 3.5 Years in June

Egypt to Lengthen Average Maturity on Debt to 3.5 Years in June

Tuesday, 4 December, 2018 - 12:30
The headquarters of the Ministry of Finance is pictured in Cairo, Egypt on August 4, 2016. REUTERS/Amr Abdallah Dalsh
Cairo- Asharq Al-Awsat
Deputy finance minister Ahmed Kouchouk said Egypt was aiming to lengthen the average maturity on its debt to 3.5 years by the end of June of the fiscal year 2018-2019.

“The maturity of our debt has reached less than two years. We are aiming to increase it to 3.5 years by the end of the current financial year, and then increase it to nearly 5 percent in the medium term,” Kouchouk said.

Egypt's foreign debt stood at $92.64 billion at the end of June. Its borrowing requirement for the repayment of external debt is $10.51 billion in the current financial year.

Finance Minister Mohamed Maait said Monday that Egypt was aiming for at least two foreign currency bond issues in the first quarter of 2019.

“It can be two or more... in the next quarter, we are planning for the first quarter of 2019,” Maait said on the sidelines of a business conference.

Last week, Egypt announced that it is set to end a discounted customs exchange rate in December for imports of goods that are considered non-essential. Egypt began setting a monthly fixed customs exchange rate in January last year, following the flotation of its pound currency in November 2016.

Beltone Financial Holding said that this decision contributes to increasing taxation revenues, amid the absence of any news taxation procedures. It added that the increase to result from this decision is unlikely to be huge, in which the customs’ fees represent 6 percent only from the taxation revenues.

Editor Picks

Multimedia