Egypt is planning to issue dollar-denominated Eurobonds between January and February next year, followed by a euro-denominated issue later, Finance Minister Amr el-Garhy said Tuesday. The dollar-denominated Eurobonds would be worth $3 billion to $4 billion and the euro-denominated issue around 1-1.5 billion euros, the minister told reporters at a news conference on the budget and tax revenues. "We're studying whether there could be a chance for something in November, but I think it would be between January and February. We may begin with the dollar-denominated Eurobond followed by the euro one." El-Garhy had said in September the finance ministry would issue the euro-denominated bonds before November. The issues would be part of its existing bond programme. Deputy Finance Minister Ahmed Kouchouk said the next IMF review visit would be between end of October and start of November. Egypt has been negotiating billions of dollars in aid from multi-lateral lenders including a three-year, $12 billion loan programme from the International Monetary Fund to help revive an economy hit by upheaval since the 2011 revolt. Earlier this year, the government sold $7 billion in five-, 10- and 30-year bonds, part of its return to international markets after turmoil following the ouster of president Hosni Mubarak in 2011. Due to recent interest rate hikes, government interest payments on debt will also increase to 410 billion Egyptian pounds from the targeted 380 billion Egyptian pounds in the current 2017-2018 fiscal year budget, the minister said. The minister also said tax revenues grew to 464.4 billion Egyptian pounds ($26.3 billion) in the fiscal year 2016-2017 from 352.3 billion pounds ($20 billion) a year earlier while total government revenues were 659.2 billion pounds for the year versus 491.5 billion a year earlier. Egypt agreed the $12 billion IMF loan programme in November. It is tied to broad reforms such as spending cuts and tax hikes and an overhaul of its subsidy system. The IMF said in late September Egypt had made a strong start to its reform programme despite waivers for missing targets in June and a deeper-than-expected currency depreciation. The government is expected to get another $2 billion (1.49 billion pounds) IMF loan payment after a year-end review, the Fund said, but inflation remains a risk. Source: Reuters
