Dollar-denominated certificates of deposits have been made available for six months to Egyptians living in several Arab countries. The certificates, issued by the National Bank of Egypt and guaranteed by the government of Egypt, offer a lucrative four per cent interest rate. A road show promoting the certificates took place earlier this week in the six countries where the certificates will be available, namely the United Arab Emirates, Kuwait, Qatar, Bahrain, Oman and Tunisia.
The certificates are not yet available in Saudi Arabia because the terms of issue are still being negotiated. The government is hoping to bring in some $1 billion from the first phase of offerings. The certificates are one of the methods the government is using to attract much-needed hard currency. Egypt's foreign reserves fell to $15.1 billion in March, $20 billion less than in January 2011.
The measure involving deposits certificates is part of a series of actions the government is taking to secure some $11 billion in external financing. It is also hoping to capitalise on Egyptian expatriates, and attracting an additional $2.5 billion by inviting them to purchase land plots. The overall target is to raise $15 billion over the next four years. It is initially offering 8,000 plots in the cities of Sheikh Zayed and Badr, near Cairo.
© Al Ahram Weekly 2012
