Government to borrow 6B EGP in T-bonds Monday
Central Bank of Egypt -YOUM7 (Archive)

CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance will auction 6 billion EGP ($786.56 million) in treasury bonds Monday, according to the bank’s official website.

The T-bonds are scheduled to be offered in three installments: the first valued at 2 billion EGP with an 18-month term, the second worth 2.5 billion EGP with a three-year term, and the third worth 1.5 billion EGP with a seven-year 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.

In a February report, Fitch Ratings said 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.

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