CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance will auction 6.5 billion EGP ($852.2 million) in treasury bills Sunday, according to the bank’s official website.
The T-bills are scheduled to be offered in two installments: the first valued at 2.5 billion EGP with a 91-day term, and the second worth 4 billion EGP with a 266-day term.
Egypt’s government intends to borrow 455 billion EGP during the current fiscal year. This comes amid efforts aimed at filling a soaring budget deficit that amounts to an estimated 14 percent of GDP for FY 2014-2015, before President Abdel Fatah al-Sisi ratified a revised and tightened budget in a move towards applying austerity measures.
Fitch Ratings said in a February report that subsidy reforms in Egypt along with lower oil prices were a contributory factor to the recent upgrade of the country credit rating to “B” from “B-” in December, with a “stable” outlook.
“Oil importers are benefiting from lower prices through reduced import bills and lower fuel subsidy costs… Egypt is a small net importer, but spent around 6 percent of GDP on fuel subsidies in FY14 (to end June),” Fitch said.