The Egyptian government is urged to hold off on issuing international bonds until the outlook on US interest rates becomes clearer. The recent 50 basis points rate reduction has sparked expectations for further decreases, which would make external borrowing more affordable. Finance Minister Ahmed Kouchouk had hinted at potential international bond issuance worth three billion dollars, but no details or timeline have been provided.
Fakhry al-Fakki, head of the Planning and Budget Committee in the House of Representatives, anticipates a three-tranche offering to take advantage of lower interest rates. Meanwhile, economic expert Medhat Nafeh advises waiting for interest rates to normalize before tapping into foreign lending markets.
With uncertainty surrounding US interest rates, observers caution against premature bond issuance. The government is advised to strategize and time their offering effectively to mitigate borrowing costs and address the significant financing gap.
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