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Thursday, 22 November 2018

CBE to restructure Egypt treasuries auctions

CBE to restructure treasury auctions and sales: The central bank, cooperation with the Finance Ministry, is looking to shake up the current bond auction system in a bid to lure new investors to Egyptian treasuries. The CBE will establish a central securities depository that will include a primary and secondary market auction systems, an electronic platform, a date-collection operation and a yield pricing monitor, the CBE said said in a prospectus to the Irish stock exchange (pdf). The initiative is being developed in cooperation with the European Bank for Reconstruction and Development (EBRD) and the MENA Transition Fund.

Euroclear to be set up in early FY2019-20: Egypt is hoping to have all of its government-issues securities available on Belgium-based clearing house Euroclear at the beginning of FY 2019-2020, Finance Minister Mohamed Maait said. Maait said negotiations are still ongoing. He had opened talks with Euroclear back in September to facilitate the settlement of domestic debt for overseas investors, who can currently only access the debt market through a handful of local banks with licenses to operate as primary dealers.

CBE to allow banks set up SME-focused PE firms: The central bank will allow banks to set up private equity funds for SMEs as part of its strategy to attract investment to smaller companies, the CBE noted in the prospectus. The bank is also looking to launch an electronic platform to provide non-financial services to SMEs and working with stakeholders to build an investment map and e-commerce facilities for agricultural projects.

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