Finance Minister: Egypt likely to issue international bonds to narrow budget deficit

Finance Minister Hany Qadry said Monday the Egyptian government can issue international bonds or use the Sukuk mechanism to narrow the 2015-2016 budget deficit.

Egypt will primarily depend on its regular economic resources, Qadry said in his speech before the Euromoney Conference, which kicked off here earlier today.

He said his ministry is acting to constantly increase those resources throughout this year and in the coming years. This, Qadry noted, can be achieved through multiple and important economic reforms.

Egypt is seeking to reduce the deficit to 8.8 percent during the fiscal year 2015-2016 down from 11.5 percent last year, the minister said.

The government is also acting to achieve a 5-percent growth rate during the current fiscal year, counting on a number of economic reforms, atop of which tax reforms and measures to attract foreign, local and regional investments, Qadry added. He also cited expansions in mega projects, such as the development of the Suez Canal Corridor and the New Suez Canal, which turned Egypt into an international investment hub.

The minister also touched upon domestic and foreign challenges the government is facing, noting those affect all world countries. Qadry particularly mentioned terrorism, assuring that the Egyptian government has succeeded in nipping in the bud most of the terror operations.

Cairo is working to outline a tax system that does not add extra burdens on investors, Qadry said, noting that tax returns will directly benefit businessmen