Dollar bonds to lure more investments, boost economy

"The US Dollar bonds that Egypt intends to market abroad are not for containing off the country's budget deficit," a top official stressed. "The bonds will be used to enhance the national economy and strengthen strategic industries likely to generate foreign currency," Minister of Finance Medhat Hassanein said following a meeting with 19 leading world banks representatives.

"The meeting discussed the state budget deficit, which fell to 3.7 percent in 1999 compared to 4.2 percent the year before," Hassanein said. Citing first quarter results, he projected a budget shortfall of 3.1 percent for 2000.

Hassanein said the meeting tackled all issues related to the proposed issuance of the US dollar bonds. They also reviewed the many positive economic developments the Egyptian economy has witnessed over the past few years.

"The visiting bankers expressed full confidence in the economy's performance and country's political climate," he added.