18 November 2019 03:37 AM

CBE: Foreign investors prefer long-term T-bonds

Saturday، 19 October 2019 - 11:05 AM

Central Bank of Egypt (CBE) Governor Tarek Amer said the great development which the Egyptian economy has witnessed recently is a testament to the success of the country’s financial and economic reform program.

In remarks he gave while attending a panel discussion held by the Institute of International Finance in Washington about the Egyptian economy, he said the Finance Ministry is presently mulling some points connected with Treasury Bonds and Treasury Bills, given the higher preference shown by foreign investors for long-term bonds that mature in five to ten years.

Commending the monetary policy committee's decision to cut interest rates, the central bank governor said that the Ministry of Finance as well as the banking sector were very much pleased with the decision and therefore there is a tendency to start offering long-term bonds.

On the nature of future dealings with the International Monetary Fund after the the Egyptian financial and economic reform program comes to an end, the CBE governor said that the government wants to benefit from the expertise and advice of the IMF in one way or another to maintain the economic successes achieved and press ahead with development plans.

He pointed out that the Egyptian economy needs more manufacturing and production as well as the modernization of some sectors including for instance those of transport, shipping and stevedoring operations. Also the services sector needs to be improved and the petrochemical industries expanded, he said, noting that a major petrochemical project is currently being negotiated with international investors.

MENA

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