Central bank to auction 7B EGP in T-bills Thursday
Central Bank of Egypt - YOUM7 (Archive)
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CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance is scheduled to auction 7 billion EGP ($917.39 million) in treasury bills Thursday, according to the bank’s official website.

The T-bills are scheduled to be offered in two installments: the first valued at 3 billion EGP with an 182-day term, and the second worth 4 billion EGP with a 357-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.

In a February report, Fitch Ratings said subsidy reforms in Egypt along with lower oil prices were a contributing factor to the recent upgrade of the country’s 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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