CAIRO: The Central Bank of Egypt (CBE) is set to auction 6 billion EGP ($839.1 million) in treasury bills Thursday, amid ongoing efforts to fill a soaring budget deficit, according to the CBE’s official website.
The government resorted to borrowing from banks operating in Egypt to cover the budget deficit, which is expected to range between 11 to 12 percent at 200 billion EGP, at the end of the current fiscal year 2013/14, compared to 10.5 percent in 2012/13 FY.
“The bills are scheduled to be offered in two installments: one valued at 2.5 billion EGP with a three-month term and the second worth 3.5 billion EGP with a one-year-term,” CBE announced.
Egypt has undergone dramatic economic difficulties since former President Hosni Mubarak stepped down in the wake of the January 25 Revolution in 2011, registering a budget deficit of over 240 billion EGP during the previous fiscal year 2012/13.
Arab leaders congratulated Sisi Tuesday on his announced election win, including the leaders of Kuwait, UAE, Morocco, Jordan and Yemen, according to Saudi state news agency SPA.
Saudi King Abdullah bin Abdulaziz Al Saud called for a donor conference to help boost the Egyptian economy in a congratulatory cable to president-elect Abdel Fatah al-Sisi, published by Saudi State-owned news agency SPA.
Kuwait and Emirates pledged the interim government around $12 billion after the removal of former Islamist president Mohamed Morsi in the wake of June 30 mass protests.
The state budget deficit recorded 163.3 billion EGP ($22 billion) during 10 months of the current 2013/14 fiscal year, representing eight percent of the country’s Gross Domestic Product (GDP,) that is expected to reach 2 trillion EGP by the end of the current fiscal year, Ministry of Finance (MOF) revealed in a report last week.