4 September 2014

Egypt: Proceeds of Suez Canal Certificates 3 Billion Pounds

Cairo — Sale proceeds of Suez Canal investment certificates have amounted to 3 billion Egyptian pounds on first day of release, Central Bank Governer Hisham Ramez said on Thursday.

There was a high demand for the certificates, Ramez told CBC Extra, adding that banks will continue to issue certificates until six in the evening.

The certificates were issued Thursday morning and were available for purchase at the National Bank of Egypt, Banque Du Caire, Banque Misr, and Suez Canal Bank

Field visits will be organized to schools to encourage students to participate in purchasing the certificates, Ramez added.

The central bank has issued seven million certificates so far out of a total 60 million, according to Ramez. The outcome of the certificates would be deposited in the Suez Canal Authority's account at the Central Bank.

The investment certificates financing the project would be tax-exempt, as per the second Article of the decree.

On August 5, Sisi launched a mega project which entails digging a 72-km (45-mile) bifurcation to the Suez Canal as well as developing the Suez Canal region. Digging the bifurcation is expected to cost $4 billion.

The government had announced that five-year investment certificates with an interest rate of 12 percent would be used to finance the project. Certificates were chosen to finance the 60 billion Egyptian-pounds project as they do not grant certificate-holders ownership rights.

The project is implemented under the supervision of the armed forces. While launching the project, Sisi said digging the new bifurcation to the canal would be completed within a year, instead of a previous deadline of three years.

Copyright © 2014 Aswat Masriya. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections — or for permission to republish or make other authorized use of this material, click here.

AllAfrica publishes around 2,000 reports a day from more than 130 news organizations and over 200 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.