Egypt Confronts Addiction to Short Debt by Rethinking Bond Plans


Egypt wants to tear down a strategy that’s left one of the Middle East’s most indebted countries hooked on short-term borrowing.

The government is looking to raise the share of longer-dated debt to about 70 percent of annual domestic issuance by 2022 from 5 percent in the last fiscal year, Deputy Finance Minister Ahmed Kouchouk said in an interview. In making a “gradual shift” away from short-term T-bills and toward instruments such as Treasury bonds, the goal is to push the average maturity to around five years by 2022, almost double the level in the fiscal year ended in June.