IslamicFinance.de

Since the IMF deal might fail, Plan B could be the issuance of US$-denominated sukuk certificates to local Banks in turn for EGPC rights in upcoming oil/gas fields. This will be akin to monetizing production sharing rights owned by EGPC. This alternative will still require aggressive reduction in energy subsidies to ensure repayment of sukuk liabilities as they come due. The two prerequisites of Plan B success are 1) stability in the movement of FC customer deposits and 2) execution of energy sector reforms . Both actors ultimately hinge on political reconciliation.