CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance is scheduled to auction 7 billion EGP ($917.15 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 3 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 fiscal year FY2014/15 (ending June 30,) in order to fill a soaring budget deficit. The budget shortfall widened to 218.3 billion EGP (around 9.3 percent of GDP) during the first nine months of FY14/15, up from 145 billion EGP in the same period last year, according to the Finance Ministry’s monthly report.
Egypt’s government intends to slash budget deficit to eight percent of GDP in the coming four years, Minister of Investment Ashraf Salman said earlier in April.
“Egypt has benefitted from the recent dip of oil global prices, which saved around 30 billion EGP. The amount will be allocated to health, education and infrastructure,” Youm7 quoted Salman.
Egypt’s overall budget deficit was estimated at 14 percent of the nation’s GDP for FY 2014-15, before President Abdel Fatah al-Sisi ratified a revised and tightened budget in July with an estimated 10 percent shortfall, in a move towards applying austerity measures.
Sisi raised fuel prices as energy subsidies were slashed in the revised budget to 100.3 billion EGP, compared to 144 billion EGP in the previous year, saving around 44 billion EGP.