CAIRO: Egypt will issue dollar-denominated foreign bonds at a total value ranging between $1 billion and $1.5 billion during the first quarter of 2015, Minister of Finance Hani Kadry announced Monday.
During the joint press conference held in Cairo with U.S. Treasury Secretary Jacob Lew Monday, Kadry said that Egypt has not yet determined the rules and regulations for the bonds.
Kadry announced earlier that Egypt will suffer a financing gap of up to $11 billion during the current fiscal year.
During the conference, the two officials discussed new economic reforms recently adopted by the government, including a reduction in subsidies, preparations to apply a value-added tax instead of a sales tax, income tax amendments and a 10 percent capital gains tax on stock market profits and dividends.
“We welcome these reforms and urge the Egyptian government to continue on this path,” said Lew in a press statement released by the U.S. Embassy in Cairo following the conference.
Lew said he discussed with Kadry Egypt’s need for external assistance to support the sustainable growth of the economy and the U.S. role in boosting Egypt’s economy.
The economic reforms included steps to improve the lives of the Egyptian people by increasing spending on social programs, health and education spending, added Lew.
They also discussed procedures to invite International Monetary Fund (IMF) officials to visit Cairo to see recent reforms, in an attempt to obtain an IMF confidence certificate for Egypt ahead of an economic summit to be held Feb. 26-27.
According to Lew, the summit will be an important opportunity for Egypt to announce the upcoming economic reforms that will implemented in the coming period. “This in turn should help attract much-needed private investment to Egypt, creating greater employment opportunities for Egyptians,” said Lew.