CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance is set to auction 8 billion EGP ($1.02 billion) in treasury bills Thursday, according to the bank’s official website.
Egypt’s central bank usually holds T-bill auctions Sunday and Thursday every week.
“The T-bills are to be offered in two installments; the first valued at 3.5 billion EGP with an 8-month term, and the second worth 4.5 billion EGP with a one-year term,” according to the auctions’ schedule.
Egypt’s government seeks to borrow from the domestic market to cover the state budget deficit which exceeded 10 percent of GDP since FY 2011/2012.
The government intends to raise 281.5 billion EGP ($36 billion) in treasury bills and bonds during the second quarter of fiscal year 2015/2016, marking an increase of 67 billion EGP, from 214.5 billion EGP planned a year earlier.
President 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.