Our local debt could be ‘Euroclearable’ by the end of the year: The Finance Ministry is aiming to iron out the final details of its link-up with Belgium-based clearinghouse Euroclear before the end of 2023, Finance MinisterMohamed Maait told Al Borsa.

It’s been a long time coming: The government has been working to meet Euroclear’s conditions since signing the initial agreement back in 2019. Last we heard, the ministry was expecting to iron out a final “technical point” and seal the agreementin 2H 2022 after multiple delays.

Why we care: Having local debt cleared in Europe will make EGP bonds more accessible to foreign investors, who can currently only access the market through a small number of local banks. Making it easier for foreign funds to invest should translate into greater inflows into Egyptian debt.

The new clearing company is already operational: The Egyptian Central Securities Depository (ECSD) has already taken over the settlement of treasury bonds from Misr Central Clearing, Depository, and Registry (MCDR), the newspaper reports. ECSD will also begin clearing treasury bills from the Central Bank of Egypt (CBE) by August.

REFRESHER- The new clearing company — which is 70% owned by the CBE and 30% owned by the Finance Ministry — was established last yearin a key step towards meeting Euroclear’s conditions. It will be responsible for managing registration, deposit, and settlement procedures for government debt instruments.

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