Today, Monday, the United Arab Emirates intends to sell federal bonds for the first time at the end of this year, according to the time when the Ministry of Finance will obtain official approvals for that.
In a related context, Yunus Haji al-Khury, Undersecretary of the Ministry of Finance, according to Al-Khaleej newspaper, revealed that it is expected to issue the first federal bonds after obtaining the necessary approvals in the last quarter of this year or the first quarter of next year.
Last year, the UAE passed a law allowing the federal government to start issuing sovereign bonds, which are usually sold by individual emirates. The Emirates Development Bank, owned by the federal government, sold bonds worth $ 750 million earlier this year, becoming the first federal entity to enter global financial markets under the new debt law.
The bonds are to achieve certain goals in the UAE. Bond yields are not used to finance the budget except in some capital projects.
On the other hand, Younis El-Khoury indicated that the public perception of the public debt strategy is currently being developed according to the latest developments in coordination with the relevant authorities in the Emirates, in preparation for raising and approval by the Council of Ministers, expected to finish this project in the third quarter of this year 2020.
The Public Debt Law, which was passed in the country in 2018, specifies the money that the government borrows from individuals and institutions by issuing those bonds and issuing them in the local currency or foreign currency; In order to meet emergency situations or to achieve different goals.
Among the instruments of public debt are bonds issued by the federal government, or a party to it, and includes an obligation by it to pay a certain amount of money, including Islamic financial instruments, treasury bonds, treasury bills, debt rescheduling permissions, government bonds, public loans or Commercial, credit facilities and payment guarantees.