Egypt's Ministry of Finance has introduced the "Citizen Bond," which offers a fixed annual return of 17.75% paid monthly to help citizens invest in government securities and manage state debts.
Egypt's Ministry of Finance is launching a new initiative dubbed the "Citizen Bond," which will offer individual investors a fixed annual interest rate of 17.75% that will be disbursed monthly for an 18-month duration. The bonds are available exclusively through post offices across various governorates in Egypt until March 8th. This financial instrument aims to provide a safe savings and investment option for citizens, allowing them direct involvement in government securities, with defined terms for redemption.
Finance Minister Ahmed Kouchak emphasized the significance of this bond as a stable investment mechanism that offers citizens a transparent and accessible means to invest in government debt, thereby contributing to state revenues. The nominal value of each bond is set at 1,000 EGP (approximately $21), with a minimum purchase requirement of 10,000 EGP (around $209). This structure not only helps the government in managing its debts but also encourages citizens to save and invest in local financial instruments.
Dalia Al-Baz, Chairperson of the Egyptian Postal Authority, noted that utilizing post offices as the exclusive sales channel reflects confidence in their operational capacity. The postal authority will only act as a sales channel while the Ministry of Finance retains responsibility for issuing the bonds and determining their returns. This initiative is part of Egypt's broader efforts to engage its citizens in financial products that support government funding while ensuring a competitive return for individual investors.
