The first slice has already secured six-fold its value in transactions; the second ten-fold, the minister said. The success of the IPO process is, in effect, an acknowledgement by dealers in the global capital markets of the creditable performance of the Egyptian economy in terms of vigor, quality and positive future outlook, which reflects a growing international confidence in the future and management of the Egyptian economy.

While this positive trust recalls the attitude of financial markets toward the State of California -which recently issued bonds maturing in 10 years at an interest rate of 5.64%- it eclipses the confidence shown earlier in the Greek economic policies, which led to an economic collapse with the interest rate of medium-term bonds hitting 8.92 %.

The purpose of issuing the two denominations of bond is to attract global investors to the Egyptian economy, since assessments by global financial markets of the level of risk in Egypt –judging by the low interest rates on bonds- remain favorable to "investment", Dr. Ghali said. This reflects confidence in the creditworthiness of Egypt, which should boost direct foreign investments along with economic growth.

Comparing the interest repaid in Egypt over 10 years, to the situation of other countries such as Pakistan, India, or Greece, one may conclude that the high cost of issuing bonds in these countries results in global market having concerns over the possible insolvency of these countries and reluctance to transact in them, preferring instead to invest in other bonds involving less risk, Ghali noted. Naturally, these concerns lead to higher bond interest rates, and less direct foreign investments, coupled with higher costs of private sector loans, operational expansion and job creation.

Based on the interest rates shown in the table below, investment risk in the State of California, the United States, seems to be roughly on a par with that in Egypt. The strong foreign sector in Egypt counts as one of the advantages which have earned the Egyptian economy the confidence of global markets, as Egypt's external debt servicing remains within safe limits, while the current balance of payments shows a surplus. To this may be added the stable growth rates which have enabled Egypt to weather the global financial crisis without significant losses.

Competitive interest rates of medium- and short-term bonds will be the benchmark for the Egyptian private sector when borrowing from global markets. They will help reduce loan costs and expand the scope of investment. The rates will also be used as a criterion by international companies in assessing the risk of investment in Egypt and making decisions on increasing investment, which would open the door wide for the creation of more job opportunities.