Government borrows 6.75B 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 is scheduled to auction 6.750 billion EGP ($861.71 million) in treasury bonds Monday, according to the bank’s official website.

The T-bonds are to be offered in three installments; the first valued at 1.5 billion EGP with an 18-month term, the second worth 3 billion EGP with a three-year term, and the third is valued at 1.750 billion EGP with a seven-year term.

Egypt’s government intends to borrow 262 billion EGP in T-bills and T-bonds during the first quarter of this fiscal year 2015/2016, according to Finance Ministry data.

The figure marks an increase of 45 billion EGP, from 217 billion EGP planned a year earlier.

The government seeks to borrow from the domestic market to cover the state budget deficit which breached above 10 percent of GDP since FY 2011/2012, and forecasted to exceed 11 percent of GDP in FY 2014/2015 (ended June 30.)

President Abdel Fattah al-Sisi ratified earlier in July the state budget for FY 2015/2016, after being revised to slash the projected deficit to 8.9 percent of GDP.

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