Egypt approves issuing new batch of $500 mln yen-denominated samurai bonds

Ahram Online , Wednesday 30 Aug 2023

The Egyptian Cabinet approved issuing a second batch of $500 million yen-denominated Samurai bonds with a five-year tenor by the Ministry of Finance, according to a statement on Wednesday.

10,000 yen bank notes.Bloomberg.
10,000 yen bank notes.Bloomberg.

 

In April 2022, Egypt issued a similar batch of $500 million yen-denominated bonds.

The government periodically issues debt instruments to fund its budget deficit.

Egypt's budget deficit accounted for six percent of its GDP in FY2022/2023.

The country's debt-to-GDP ratio was estimated at 95.6 percent for FY2022/2023. GDP stood at EGP 9.8 trillion ($318.23 billion) that year. 

The government has increased its budget deficit estimate to 6.9 percent of GDP for FY2023/2024, which started on 1 July.

Egypt aims to overcome a local shortage of US dollar liquidity and a financing gap estimated at $17 billion through 2026.

In mid-August, the Central Bank of Egypt auctioned €600 million ($656.29 million) worth of treasury bills.

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