Egypt's parliament to discuss draft law on sovereign bonds (Sukuk) Sunday

The law will allow the Finance Ministry to issue Islamic sharia-compliant bonds necessary to raise capital for spending on development projects

Egypt's parliament, the House of Representatives, will on Sunday discuss a government draft law on issuing sovereign bonds (Sukuk) that is aimed at shoring up the state's financial performance and covering the budget deficit.

The law will allow the Ministry of Finance to issue Sukuk to raise capital necessary for spending on economic and investment projects targeted by the state budget and development plan, a report prepared by the House's budget and economic affairs committees said.

 

The Sukuk, which is sharia law compliant and dominant in most Islamic countries, will be a fourth source of finance, along with treasury bills, domestic loans and credit facilities, and foreign loans and credit facilities, the report said.


Abeeblahi Akintola

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