Egypt issued on Wednesday (November 9th) $4 billion in bonds in the Irish Stock exchange in an attempt to create new financing sources to plug the country's widening budget deficit, Ahram Online reported Thursday.
The issuing is part of the Ministry of Finance's effort to diversify financing, in order to plug the country's budget deficit, alleviate burdens on local financing sources and lower public debt, finance minister Amr al-Garhy said.
The move is part of a broader plan to issue international bonds in global markets in the near future, he said.
Egypt's Central Bank has used part of the bond issuance to secure $2 billion in financing from international banks, in a move announced Thursday that aims at boosting the country's foreign reserves.
Egypt's slump in foreign reserves and its widening budget deficit have pushed the country to launch a reform programme to stabilise the economy.
Last week, the Central Bank floated the pound and raised fuel prices. The government has also cut electricity subsidies and introduced a new Value Added Tax.
The country is waiting on the International Monetary Fund to sign off on a $12 billion loan package which has received the organisation's initial approval .
