On Monday, a finance ministry source revealed that Egypt was close to obtaining $500m in financing from China as part of a $10bn financing package that China plans to redirect from its reserves in the International Monetary Fund to African countries.
The source added that Egypt will obtain the new funding by issuing yuan-denominated bonds during the first quarter of 2023. Cairo seeks to attract as much money as possible to bridge its financing gap. Deputy Finance Minister Ahmed Kujok said last week that Egypt is working on issuing yuan-denominated bonds by the end of the current fiscal year.
The Minister of Finance, Mohamed Maait, has said that the government aims to complete the first issuance of sovereign instruments next year, with about two and a half billion dollars. Egypt’s total external debt recorded about $155.7 billion in June 2022, an increase of about $17.8 billion compared to June 2021, according to the Central Bank of Egypt.