Last Update 20:26
Wednesday, 23 October 2019

Egypt to issue $3 bln Eurobond in Sept-Oct, implement VAT by Sept

Reuters , Tuesday 28 Jun 2016
Egypt's Ministry of Finance (File Photo)
Views: 2633
Views: 2633

Egypt's finance minister said on Monday the country would look to issue a $3 billion Eurobond between September and October, and would implement a long-delayed value-added tax (VAT) by September.

Egypt has searched for a variety of funding sources, from development loans to foreign grants and aid, to plug its financing needs as it contends with an acute dollar shortage that has hampered its ability to purchase from abroad.

It has delayed its return to the international bond market after selling its first Eurobond in five years in June of last year.

"We are studying a bond issuance of $3 billion on the international market between September and October of this year in order to fill part of the budget's financing gap, which is expected to reach $10 billion," Finance Minister Amr el-Garhy said.

Egypt has attributed the bond delay to turbulent financial markets and the slowdown in China, which has reduced liquidity for emerging markets.

Garhy also said he expected a value-added tax, that has been delayed on fears of inflation, to be applied in September "should parliament approve it".

"Once applied it is expected to bring in revenues during 2016-2017 (financial year) ranging from EGP20 (billion) to EGP25 billion ($2.25 billion-$2.82 billion)."

The law is expected to replace the current sales tax and broaden the tax base by subjecting all services to the tax while maintaining the principle of exempting basic goods and services that affect the poor. 

The parliament gave a preliminary approval to the state budget and sent it to the Council of State before it could be finally approved, reported official news agency MENA on Tuesday.

*This article has been edited by Ahram Online.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

© 2010 Ahram Online.