CAIRO: The Central Bank of Egypt (CBE) is scheduled to auction $6billion in treasury bills to increase liquid assets for the Ministry of Finance Sunday, according to a statement from the Central Bank of Egypt.
The initial offer of the 91-day bills’ value is worth 2.5 billion EGP (around $ 349 million,) while the 273-day bills are worth 3.5 billion EGP, the statement added.
The auction of the bills and bonds is expected to raise 240 billion EGP.
An official from the Ministry of Finance told al-Arabiya July 31 that the ministry would action 64.5 billion EGPin treasury bills and bonds to fill the budget deficit gap during August comparing with 79.5 billion EGPin July. The official added that the ministry would offer 224.5 billion EGP during the first quarter of FY 2014/2015.
On June 29, President Abdel Fatah al-Sisi approved a budget deficit of FY 2014/15 to be 10 percent of gross domestic product (GDP) after he rejected an initial budget proposal with a budget at 12 percent of GDP.
To prevent a further increase of the budget deficit, Sisi took austerity measures; on July 5 fuel prices increased between .70 EGP and .75 EGP ($.04-.05) per liter, sparking the anger of many commuters and taxi drivers.