Egypt attracts USD9.8 bln foreign investment in debt instruments in 2016/17

Reuters , Sunday 2 Jul 2017

U.S. Dollars (File photo: Reuters)

Egypt attracted almost a nine-fold increase in foreign investment in domestic debt instruments in the 2016-2017 fiscal year, the finance ministry said on Sunday.

Appetite for Egypt's domestic debt has increased since the central bank floated the currency in November as part of an International Monetary Fund lending programme aiming to revive the economy.

For the 2016/17 fiscal year, beginning July 1 in Egypt, foreign investment rose to $9.8 billion compared with $1.1 billion the previous year, the finance ministry said.

"Foreign investment in domestic treasury bills and bonds reached $1.250 billion in June alone, and about $9 billion since the flotation," Deputy Finance Minister Ahmed Kojak told Reuters by telephone.

The three-year IMF reform programme also includes tax raises and subsidy cuts.

Egypt's economy has been struggling since a 2011 uprising drove tourists and foreign investors away, drying up foreign reserves.

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