Finance Minister Mohamed Maait told Enterprise that global macro headwinds and outflows from Egyptian debt instruments are pushing the government to seek long-term facilities. The government is in talks with international finance institutions to line up longer-term facilities that will help plug Egypt’s financing gap, he said, singling out the World Bank, the African Development Bank, the French Development Agency, and the Japan International Cooperation Agency, without specifying how much Egypt was looking to borrow. Maait is looking for tenors of up to 30 years, with interest rates of 1-2%. Maait confirmed that long-term, lower-cost facilities will be the main borrowing instruments for the government during the current fiscal year. Maait intimated that the changing global macro climate had played a significant role in the decision. He said government borrowing costs were at risk of rising, thanks to portfolio outflows from emerging markets, as well as the US Federal Reserve’s plan to continue raising interest rates. He also noted that higher oil prices remained a threat to meeting this year’s budget targets. As a result of higher interest rates in the US, “it would be inappropriate for us to issue foreign-denominated bonds,” Maait said. We will continue to observe the market and make a decision in the future. Government officials have previously stated that the Egypt would look to borrow USD6-7bn in international bond offerings in FY18/19.