(Adds comment, background)
CAIRO, March 22 Egypt is targeting $9 billion in
foreign financing in the 2017-18 fiscal year, Deputy Finance
Minister Ahmed Kouchouk told Reuters on Wednesday.
The financing will be divided between $3 billion obtained
from debt markets and $5 billion to $6 billion from
international finance institutions, he said.
Egypt agreed with the International Monetary Fund in
November on a $12 billion, three-year loan programme to support
government efforts to reduce its budget deficit and balance its
The finance minister said last week he expects Egypt to
receive the second tranche of this loan, expected to be $1.25
billion, in May or June.
Egypt is also expected to receive additional tranches of
loans from the World Bank and African Development Bank in
2017-18, which together would total $1.5 billion.
Kouchouk said the $3 billion from debt markets could come in
the form of Eurobonds denominated in dollars or other currencies
as well as Sukuk.
He did not say when Egypt was likely to tap debt markets
during the coming fiscal year, which begins in July.
Egypt raised $4 billion in sales of Eurobonds earlier this
year at lower-than-expected yields, with demand for the bonds
(Reporting by Ehab Farouk, writing by Eric Knecht, editing by