Government borrows 5.5 billion EGP Sunday
Central Bank of Egypt - YOUM7 (Archive)

CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance, intends to auction 5.5 billion EGP ($790.22 million) in short-term treasury bills Sunday, according to CBE’s statement on its website.

The bills are scheduled to be offered in two installments, one worth two billion EGP with a three-month term and the second valued at 3.5 billion EGP with 266-day-term.

The budget deficit is expected to range between 11 to 12 percent, 240 billion EGP, by the end of the current fiscal year 2013/2014, Minister of Finance Hany Kadry said Wednesday.

In February, the government represented by the Ministry of Finance and the CBE borrowed 70 billion EGP in treasury bills and bonds worth, according to the state-owned Middle East News Agency (MENA.)

“The government aims to reduce the budget deficit to 10 percent,” Prime Minister Ibrahim Mahlab said in a press conference on Tuesday.

This needs higher production rates and tourism revenues to return to normal, added Mahlab.

Egypt’s budget deficit is currently funded by CBE treasury bills and bonds, one of the governmental instruments for debts, as well as aid from Gulf States and international loans.

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