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IMF Emergency Funds Give Egypt Space to Reduce Local Borrowing

  • North African nation may cut amounts accepted at debt sales
  • Country faces $10 billion funding shortfall on Covid-19 hit
    
Photographer: Mohamed el-Shahed/AFP via Getty Images

Egypt may reduce financing in local markets over coming weeks as it tries to cut debt-service costs for one of the Middle East’s most indebted countries.

The country may lower the amounts it accepts in auctions of Treasury bills and bonds for the remainder of the fiscal year that ends in June, the Finance Ministry said in a statement on Wednesday. The government is “eager to diversify financing sources to cut borrowing costs,” it said.