EGYPT – Egypt cabinet set to endorse sukuk bill

EGYPTIAN Cabinet recently made the final endorsement of the sukuk bonds bill during a meeting, Minister of Finance’s adviser Ahmed Al-Naggar said, according to Zawya’s report. 

The Islamic bonds bill will be worked out by the government, prior to referring it to the Shoura Council for discussion, he added. During the meeting of the Financial Affairs Committee which convened to discuss the draft law, Al-Naggar noted that sukuk is capable of luring additional foreign investments. 

Meanwhile, negotiations over the proposed USD4.8 billion International Monetary Fund (IMF) loan are to resume early March, according to a statement made by Egypt’s Minister of Investment Ossama Saleh. “There have been pledges of international and regional support to Egypt and most of these are in progress,” Saleh said in a statement to Reuters. 

Minister of Finance Al-Morsi Hegazy said in a public statement that the loan will “greatly benefit Egypt’s economy at the current time and should be a great opportunity for future investments.” 

A number of drastic economic measures were announced by Egypt’s President Mohamed Morsi to include tax increases to reduce the budget deficit by increasing state revenues in order for the country to be eligible for the IMF loan.