Egyptian Finance Minister Mumtaz al-Said has urged the upper house of parliament to accept a loan from the IMF. The loan is over $4 billion and will burden the country for years to come., a photo by Pan-African News Wire File Photos on Flickr.
Egypt Offers $2.3 Billion of Debt as U.S. Reiterates Aid Pledge
By Ahmed A. Namatalla - Sep 5, 2012
Egypt will offer 14 billion Egyptian pounds ($2.3 billion) of government debt over the next week as yields declined before International Monetary Fund loan talks resume and as the U.S. reiterated an aid pledge.
The Arab country will seek to raise 10 billion pounds at sales tomorrow and on Sept. 9 by selling treasury bills ranging in maturity from three to 12 months, according to central bank data on Bloomberg. It will seek bids for a combined 4 billion pounds of three-, seven- and 10-year treasury bonds on Sept. 10.
The average yield on seven-year bonds dropped 25 basis points at a sale this week to 16.65 percent, the lowest since January. An IMF delegation is due to resume talks in the second week of September with Egypt for a loan of as much as $4.8 billion, Finance Minister Momtaz El-Saieed said in August. These funds are needed to bridge the budget deficit, including government investment to restart the economy, El-Saieed said yesterday.
The Obama administration is going forward with a plan announced last year to provide Egypt with a $1 billion aid package, including debt relief, to help the country’s economy, Patrick Ventrell, the State Department’s acting deputy spokesman, said yesterday.
The yield on the nation’s 5.75 percent dollar bonds due in 2020 was little changed at 5.47 percent at 3:11 p.m. in Cairo, according to prices compiled by Bloomberg. That’s near the lowest level in almost a year. The pound, subject to a managed float, strengthened 0.1 percent to 6.0965 a dollar.
To contact the reporter on this story: Ahmed A. Namatalla in Cairo at anamatalla@bloomberg.net
To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net
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