Foreign holdings in Egyptian treasuries at USD 19.2 bn

After dropping to USD 11.5 billion late last year, foreign holdings in Egyptian treasuries increased again.

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São Paulo – Foreign holdings in Egyptian treasuries stood at USD 19.2 billion till mid-June, as per information published in the newspaper Al Ahram website this Friday (19) based on an announcement by Egypt’s vice minister of finance for fiscal policies and institutional reforms Ahmed Kouchouk.

Foreign interest in securities has been recovering since the start of the year after a weak performance last year. Foreign holdings of Egyptian treasuries stood at USD 21.2 billion in January 2018, increased to USD 21.1 billion in March and dropped to USD 11.5 billion in December.

Treasuries are a bond issued by governments to support government spending, usually to finance a budget deficit or public debt. They may be bought at the financial market and one of the variables of the interests paid for those who acquire them is the risk involved in the operation.

Egypt has implemented a series of economic reforms that are part of a plan supported by the International Monetary Fund (IMF) and has worked on attracting foreign capital. Local economy grew by 5.6% in the last fiscal year ended in June, and the budget deficit stood at 8.2% of the Gross Domestic Product (GDP).

Pictured above, Egypt president Abdul Fatah Khalil Al-Sisi. 

Translated by Guilherme Miranda

Mikhail Klimentyev/Sputnik/AFP

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