Thu, 14 Oct 2021 - 01:41 GMT
FILE PHOTO: Finance Minister Mohamed Maait speaks during a news conference in Cairo, Egypt July 5, 2018. REUTERS/Mohamed Abd El Ghany/File Photo
CAIRO – 14 October 2021: Egypt's accession to J.P. Morgan government bond index for emerging markets, as of the end of next January, is a new certificate of confidence from foreign investors in the solidity of the Egyptian economy, according Minister of Finance Mohamed Maait.
Maait indicated in a statement, Thursday, that this certificate confirms that 90 percent of the foreign investors who were surveyed supported Egypt's entry into the "J.P Morgan"; To become one of only two countries in the Middle East and Africa in this index.
The minister pointed out that Egypt is expected to access the index with 14 bond issuances with a total value of about $24 billion, with a share of 1.85 percent in the index.
The minister added that Egypt used to be a member in this index, but left it in June 2011 for not meeting the requirements of the I.P Morgan, explaining that about 3 years ago, the Ministry of Finance began seeking to re-join Egypt to the Index by achieving the bank’s requirements, including: extending the life of government debt, adjusting the “yield curve” and raising the proportion of foreign investors’ participation in government financial instruments with an increase in the volume of each issue.
The minister indicated that this step reflects the continuous efforts of the Ministry of Finance to reduce the cost of public debt as part of the package of measures taken by the state for economic reforms, explaining that with Egypt's accession to the "J. P. Morgan,” $1 billion of new additional investments will be pumped into the Egyptian government securities market, including treasury bills and bonds, and then achieve the debt management strategy in reducing the cost.