Egypt plans to sell a $1 billion Eurobond in July after global market turmoil earlier this year delayed the issue, Finance Minister Youssef Boutros-Ghali said.

"It will be in July," he told reporters, responding to questions about the issue.

Egypt had been due to sell the bond in the first quarter of 2008, but the issue was delayed due to market turmoil stemming from the U.S. subprime mortgage crisis.

Officials had said the bond would be denominated in Egyptian pounds but payable in US dollars with a maturity of between 7 and 10 years. HSBC Holdings and JP Morgan are global coordinators.

Boutros-Ghali also said the government would end tax exemption on government bonds as it seeks revenue to cover the cost of a 30-precent increase in public sector salaries.

Egypt's economy is on pace to match or slightly beat last year's growth of 7.1 percent, its fastest in decades, officials have said.

Urban inflation surged to a fresh three-year high of 16.4 percent in the year to April. The central bank has raised interest rates three times this year. - Reuters