(AFP Photo)
A new law for the issuance of the Suez Canal investment certificates was finalised by the cabinet Wednesday to prepare for the their announcement which is slated to be held on Monday, if not earlier, a source at the finance ministry said.
“There was a discussion in the government about whether or not the issuance needed its own law,” the official said. “After agreeing on creating a law, the cabinet prepared one and is not awaiting the presidential approval.”
The official stated that Egyptian banks are prepared for the issuance after several meetings with Central Bank of Egypt governor Hisham Ramez.
“President Abdel Fattah Al-Sisi wants the certificates issued as soon as possible,” the government official said.
The official stated that the government has not announced specific figures regarding the amount it expects to collect.
“I personally believe that some EGP 30bn or EGP 40bn will be collected,” the official said.
The turn-out on purchasing the investment certificates can be among people who have savings accounts in Egypt Post.
“There are around 20m accounts in Egypt Post,” the official said, adding that “people who have savings amounting between EGP 300 to EGP 10,000 are expected to purchase the certificates”.
Last week, Finance Minister Hany Kadry Dimian announced that a maximum limit will not be applied to Egyptians who seek to acquire investment certificates for the expansion in the Suez Canal. The minister added that several Egyptian companies will be permitted to purchase the certificates under certain regulations.
The minister noted that the return on these certificates will be paid from the revenues of the Suez Canal, which he said will rise from EGP 5.5bn to more than EGP 13bn over the next four years.
The government’s sudden decision to shift the financing of the project from shares to investment certificates raised several questions among Egyptians. Some experts believe that investment certificates were selected for their easier regulations and attractive interest rate.
