CAIRO: The Central Bank of Egypt is scheduled to auction 5 billion EGP ($861.18 million) in treasury bills Sunday on behalf of the Ministry of Finance, according to a CBE statement published on its website.
The bills will be offered in two installments, one worth 2 billion EGP with a three-month term and the second valued at 3 billion EGP with a 266-day term.
The government borrows from banks in order to fill the budget deficit which is expected to range between 11 to 12 percent (200 billion EGP,) by the end of the current fiscal year 2013-2014, Minister of Finance Hany Kadry said in early March.
Kadry announced later that Egypt’s total budget deficit went down by 6 percent of the country’s gross domestic product (GDP) from July to February of the 2013/14 fiscal year, according to the state-owned Middle East News Agency (MENA.)
According to the ministry’s bulletin, the deficit has reached 123.6 billion, compared with 146.49 billion in the same period a year earlier, MENA reported. The ministry also noted that government revenues from July to February of the 2013/14 fiscal year reached 254.224 billion pounds.
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.