Egyptian government bonds (bonds) are government bonds issued by the Egyptian Ministry of Economy and Finance as part of the Egyptian public debt refinancing programs. These bonds are in effect debt securities placed periodically by the Treasury with local and foreign investors to cover the state’s needs and can be short, medium and long term, with a fixed or variable rate based on inflation.
The purchase of Egyptian government bonds can be made on the primary market through a public auction called by the government or on the secondary market through access to official domestic or international markets. The bonds bear interest that is paid periodically to the holder, while at the natural maturity of the bond the state reimburses the capital.
bonds issued by a state that enjoys full financial autonomy and mints its own currency are also called “sovereign” or “government” bonds, they can be issued in Egyptian pounds or in a high-quality international currency, especially dollars (USD), or even euros. Their yield depends on the health of the country’s economy and the currency of denomination at a given moment in history. Egypt currently enjoys low-end “non-investment grade” credit ratings from international rating agencies.
