Egypts debt instrument market gets $970mln investments

ArabFinance: Foreign investors have injected $970 million since early January in investments in Egypts long-term treasury bills (T-bills), an official source at the Central Bank of Egypt (CBE) revealed.

These investments in Egypts debt instruments reflect the robust rebound of foreign investments in the Egyptian market in 2022.

Egypts economy has proven its ability to overcome the global monetary policy repercussions, which is positive aspect.

In July 2021, the International Monetary Fund (IMF) expected the foreign direct investment (FDI) inflows to jump in Egypt by 60% over the coming four years starting from current FY 2021/2022.

Accordingly, FDI inflows to Egypt are projected to hit $8.6 billion during current FY 2021/2022, which ends in June, up from $5.4 billion recorded in FY 2020/2021, said IMF.

The IMF also predicted FDI inflows to Egypt to continue its upturn in FY 2022/2023 to post $11.7 billion before hitting $16.5 billion in FY 2024/2025.

Egypts government, through the Ministry of Finance, adopts a medium-term debt management strategy that centers on reducing debt services, prolonging its period, and improving governmental security in markets to expand the investors' base that will, in turn, provide the required liquidity to support the budget.

Based on this strategy, the external debt trajectory will be set in accordance with the expected cash inflows to the country to a maximum of 37% of GDP, which will be put on a downturn path per year.

It also targets decreasing external debt to GDP ratio to below 30% over the medium term.

Moreover, the strategy aims at decreasing public debt to GDP ratio to about 70% over the coming four years and putting a cap on loans obtained through external bodies over the same period.