The National Investment has agreed on the first agreement of its kind to sell and re purchase government bonds with CIB.

Minister of Finance Dr. Youssef Boutros Ghali has announced that the agreement aims to upgrade the performance of the portfolio of the National Investment Bank and to improve the dealings related to the securities department, explaining that the Investment Bank has sold and re purchased portions of its portfolio of government bonds over two weeks in line with international management and in coordination with the Ministry of Finance to activate bond dealing.

Advisor to the Minister Mahmoud Asaad has pointed out that the public debt department on agreements to sell and repurchase bonds offers opportunities to invest in liquid assets in financial institutions at a higher interest than on deposits; whereas inter bank lending rates is less.

He said that agreements on selling and re purchasing allows banks with a bond portfolio to use the agreements to obtain liquidity on agreed on time periods between the parties.  Returns  on bonds continue to be part of the right of the original owner who is the National Investment Bank in this case.

(source : Ministry of Finance)