CAIRO: CBE on behalf of Finance Ministry will hold two auctions Monday, offering 6.5 billion EGP ($830 million) in treasury bills and 5 billion EGP ($638 million) in treasury bonds, according to the bank’s official website.
Egypt’s central bank usually holds T-bill auctions on Sunday and Thursday every week, but for the circumstances of Eid al-Adha vacation; the auction was postponed to Monday. As for the T-bonds, CBE usually holds its auctions every Monday.
“The T-bills are to be offered in two installments; the first valued at 2.5 billion EGP with a 3-month term and the second worth 4 billion EGP with a 9-month term,” according to the auctions’ schedule.
The T-bonds are also to be offered in two installments; the first valued at 3 billion EGP with a 5-year term and the second worth 2 billion EGP with a 10-year term.
The government seeks to borrow from the domestic market to cover the state budget deficit which exceeds 10 percent of GDP since FY 2011/2012.
Presient Abdel Fatah 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.