Mohamed Maait, Minister of Finance, said that Egypt is one of two countries in the Middle East and Africa within the J.P. Morgan Emerging Market Bond Index (EMBI).
This, he added, should encourage big investment funds and foreign businessmen to put their money into Egyptian debt instruments in the local currency.
S&P expected that Egypt’s accession to the index would contribute to achieving one of the Egyptian government’s debt management strategy objectives, which is to reduce the cost of financing, in addition to activating the stock market to increase its levels of liquidity, and enhance the demand for government debt instruments, which would reduce its cost through the decline in the return required by investors.
The estimated weight of Egypt in the index will be about 1.85 percent.
In a session moderated by Alison Livesey, the Managing Director, Wholesale Payments: Global Market Management, Business Transformation and Strategic Execution, Western European Country Head, at J.P. Morgan, Al-Mashat spoke about her personal career trajectory, and the importance of the economic inclusion of women.
“Egypt has retained the confidence of all three international evaluation institutions, Standard & Poor's, Moody's, and Fitch, during one of the most difficult periods of the global economy,” the American bank stated.
Citigroup Inc (C.N) and Credit Suisse Group AG (CSGN.S) declined to comment on Sunday on their plans.