The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 19.5 billion in treasury bills (T-bills) on Thursday, July 16.
The T-bills will be offered in two instalments; the first instalment is valued at LE 9 billion with a 182-day term and the second is worth LE 10.5 billion with a 364-day term.
T-bills are issued every Sunday and Thursday.
For the current fiscal year, the budget deficit is estimated to record 6.3 per cent of gross domestic product (GDP), planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.
The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided in June to keep the overnight deposit rate, the overnight lending rate, and the rate of the main operation at 9.25 per cent, 10.25 per cent, and 9.75 per cent, respectively. Moreover, credit and discount rates are cut at 9.75 per cent from 12.75 per cent.
Earlier, CBE decided to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation in an emergency meeting by 300 basis points.
Egypt’s 2020/2021 draft budget aims to reduce the public debt of GDP to 82.7 per cent by end of June 2021, up from an earlier target of 82.5 per cent by the end of June 2020 and to 77.5 per cent by the end of June 2022.
Culled from Egypt today
