Economic expert Mohamed Fouad, the head of the al-Adl Center for Public Policy Studies, commented on the announcement by Finance Minister Ahmed Kouchouk of the issuance of retail bonds for individuals to help them find new savings methods.
Kouchouk has said that the government is considering launching Egyptian pound-denominated sukuk and bonds for individuals during the current fiscal year.
These instruments “will provide additional liquidity through the new notes and provide a new savings mechanism for citizens,” he noted.
Fouad said via his X account that “The idea is excellent. The government is borrowing from savings, since the majority of banks’ investments are in government debt instruments.”
“Citizens are accustomed to certificates (of deposits), while investing in debt instruments is limited to companies and higher-income individuals. The outcome of the proposal will be higher returns for individuals and less funding for the government. Win-win, not in vain.”
Retail bonds are a government debt instrument aimed at financing the state’s general budget.
These bonds are available to individuals and institutions and feature a specific maturity period and a periodic return known as a coupon.
Edited translation from Al-Masry Al-Youm
