{"id":16760,"date":"2026-07-07T15:21:39","date_gmt":"2026-07-07T13:21:39","guid":{"rendered":"https:\/\/zawia3.com\/?p=16760"},"modified":"2026-10-24T19:50:13","modified_gmt":"2026-10-24T17:50:13","slug":"saving","status":"publish","type":"post","link":"https:\/\/zawia3.com\/en\/saving\/","title":{"rendered":"Egypt\u2019s Citizen Bond Offers 17.75%. Can Households Afford to Save?"},"content":{"rendered":"

The Egyptian government has recently been preparing <\/span>to offer<\/span><\/a> a third issue of the “Citizen Bond” through post offices in the various governorates, with the aim of <\/span>providing<\/span><\/a> liquidity that contributes to paying off debts, and of providing citizens with savings alternatives to bank certificates. <\/span><\/p>\n

The Citizen<\/span> Bond<\/span><\/a> aims to raise liquidity to cover the budget deficit, while the government regards it as<\/span> an opportunity<\/span><\/a> for citizens to invest directly and safely in government securities, as banking expert Hany Abu El-Fotouh tells Zawia3.<\/span><\/p>\n

The Ministry of<\/span> Finance<\/span><\/a> had offered, on 22<\/span> February<\/span><\/a> last, the “Citizen Bond” to individuals through post offices, with a fixed annual return (17.75%) paid monthly for 18 months, as a safe savings instrument with a fixed periodic return, according to<\/span> statements<\/span><\/a> by government officials, to give citizens an opportunity to invest directly in government securities with ease.<\/span><\/p>\n

On 4 April last, the second<\/span> offering<\/span><\/a> of the Citizen Bond was issued, while the value of sales in the second offering reached about<\/span> EGP 2 billion<\/span><\/a>, with the Ministry of<\/span> Finance<\/span><\/a> intending a third offering along with expanding the sale of the Citizen Bond through banks to widen the base of beneficiaries, without<\/span> targeting<\/span><\/a> a specific amount from the offering.<\/span><\/p>\n

Minister of Finance Ahmed Kouchouk, meanwhile, stated on 29 March last, about 19 days after the first offering ended, that<\/span> sales<\/span><\/a> of the Citizen Bond had reached about EGP 5.7 billion, describing<\/span> demand<\/span><\/a> for subscription to the bonds as “large” after it achieved notable proceeds in 3 weeks, according to his statements. <\/span>The first offering<\/span><\/a> of the Citizen Bond ended on 10 March last, after subscription to it began on 22 February 2026, according to official data.<\/span><\/p>\n

By contrast,<\/span> reports<\/span><\/a> described demand for the Citizen Bond as “limited”, compared with the bank certificates offered by the National Bank of Egypt and Banque Misr in January 2024, which raised about EGP 1.5 trillion<\/span><\/p>\n

Kouchouk had<\/span> stated<\/span><\/a> that Egypt is seeking to diversify its financing instruments, markets and sources and is targeting a downward path for the debt of budget-sector agencies, noting that the Egyptian government is seeking to expand swapping part of its debt for investments in all fields through innovative financing models.<\/span><\/p>\n

Hany Abu El-Fotouh describes the Citizen Bond instrument by saying that “on paper, the idea looks clever”, explaining that access to the bonds through post offices opens the door to segments that do not deal easily with traditional debt instruments or with complex banking procedures, with denominations for the medium and small saver, not the professional investor alone.<\/span><\/p>\n

Government debt<\/span> instruments<\/span><\/a> are defined as financial contracts issued by the state, represented by the Ministry of Finance and the Central Bank, to borrow from individuals and institutions in order to finance economic development projects and cover the general budget deficit or control inflation.<\/span><\/p>\n

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Budget-sector debt as a share of GDP<\/figcaption>

At the end of June each year<\/p>

<\/div>
<\/div>
End of June<\/th>Domestic debt<\/th>External debt<\/th>Total debt<\/th><\/tr><\/thead>
2016<\/td>94.9<\/bdi><\/td>7.9<\/bdi><\/td>102.8<\/bdi><\/td><\/tr>
2017<\/td>84.1<\/bdi><\/td>16.8<\/bdi><\/td>100.9<\/bdi><\/td><\/tr>
2018<\/td>72.8<\/bdi><\/td>17.7<\/bdi><\/td>90.5<\/bdi><\/td><\/tr>
2019<\/td>72.5<\/bdi><\/td>17.8<\/bdi><\/td>90.2<\/bdi><\/td><\/tr>
2020<\/td>72.4<\/bdi><\/td>17.5<\/bdi><\/td>80.9<\/bdi><\/td><\/tr>
2021<\/td>66.3<\/bdi><\/td>18.3<\/bdi><\/td>84.6<\/bdi><\/td><\/tr>
2022<\/td>68.0<\/bdi><\/td>19.2<\/bdi><\/td>87.2<\/bdi><\/td><\/tr>
2023<\/td>70.5<\/bdi><\/td>25.2<\/bdi><\/td>90.7<\/bdi><\/td><\/tr>
2024<\/td>62.3<\/bdi><\/td>27.1<\/bdi><\/td>89.4<\/bdi><\/td><\/tr>
2025<\/td>62.0<\/bdi><\/td>21.8<\/bdi><\/td>83.8<\/bdi><\/td><\/tr><\/tbody><\/table><\/div>
Ministry of Finance<\/span>