Egypt's Finance Ministry launched the new 'Citizen Bond' today, an investment tool available exclusively through Egypt Post branches for individuals, offering a fixed annual return of 17.75% over 18 months with monthly payouts.
The Citizen Bonds form part of efforts to diversify government funding tools, according to Finance Minister Ahmed Kouchouk, who stated they aim to expand the investor base by offering secure savings options to citizens. Purchases require opening a non-interest-bearing current account at Egypt Post with a minimum deposit of around LE300 and a LE200 administrative fee, conducted strictly in cash with a LE10,000 minimum (10 shares at a nominal LE1,000 each) and no upper limit.
Unlike traditional treasury bonds, these bonds resemble bank savings certificates but with higher yields and shorter 18-month maturities. MP Mohamed Fouad said they provide the government with a lower-cost borrowing route while pressuring domestic banks to reduce yields demanded on government debt instruments. 'One percent less saves the government billions of pounds,' Fouad told Mada Masr.
In context, treasury bill yields peaked at 31% by end-2024, and high-yield certificates offering up to 27% were suspended in April 2025 amid interest rate cuts bringing current rates to 19-20%. The bonds target non-banked savers in rural areas and Upper Egypt, where Egypt Post's over 4,700 branches are more prevalent. However, Finance and Economics Professor Hassan al-Sady doubts they will generate proceeds comparable to past certificates, noting postal savings account for just 1% of total individual savings nationwide, versus 89% in banks. The LE10,000 minimum positions it as a higher-income option, and limiting sales to post offices may draw savers from banks, sources indicated. Former MP Fakhry al-Fiky described post offices as 'shadow banks' in Egypt's financial landscape.