Egypt’s Domestic Notes Retreat as Economic Growth Sluggish
Egypt’s domestic bills retreated after the government announced economic growth in the last quarter of 2011 was little improved as the tourism and construction industries contracted.
The mid-yield on the country’s local-currency one-year notes increased 4 basis points to 15.8 percent, according to secondary-market prices compiled by Bloomberg from 15 contributors. The rate on one-week securities advanced seven basis points to 12.1 percent.
Gross domestic product expanded 0.4 percent in the three months that ended Dec. 31, compared with growth of 0.2 percent in the previous quarter and 5.6 percent a year earlier, the Ministry of Planning and International Cooperation said yesterday. Tourism shrank 6.5 percent in the quarter after contracting 10.4 percent in the previous three months, according to the report. Construction, which fell 2.8 percent in the first quarter of the fiscal year, dropped 0.6 percent.
The government is awaiting parliamentary approval for an economic program that reduces the budget deficit and public debt over the next two years before submitting it to the International Monetary Fund for a $3.2 billion loan. IMF money would help meet financing needs of about $11 billion by June 2013, Minister of Finance Momtaz el-Saieed said last month.
The yield on the country’s 5.75 percent dollar bonds due in 2020 retreated one basis point, or 0.01 of a percentage point, to 6.82 percent at 3:55 p.m. in Cairo, according to prices compiled by Bloomberg. The Egyptian pound was little-changed today at 6.0367 a dollar.
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