Friday December 8th, 2023
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World Bank’s IFC Issues EGP Currency Bonds in Global Markets

200 The news follows increased efforts by the Egyptian government to finance its budget deficit.

Cairo Scene

In efforts to secure foreign currency as well as fund its budget deficit, the Egyptian government has permitted the World Bank’s International Finance Corporation to issue bonds in Egyptian pounds. The IFC is the financial arm of the World Bank.

These debt instruments will aid the Egyptian government to more easily repay its external debt which was at USD 165.3 billion as of the 2022/2023 fiscal year. The bonds will enable the government to repay debts in Egyptian pounds as opposed to foreign currency. This comes as the country struggles to deal with a shortage of US dollar liquidity.

In order to fulfil its agreements with the IMF, the country has embarked on a vast privatisation programme which has seen the offering of 32 public companies to the private sector. The IFC has been playing an advisory role to the Egyptian government in this endeavour.