EGYPT GOVERNMENT PLANS TO BORROW EGP 478.5BN TO FILL BUDGET DEFICIT

Egypt Government making plans to borrow fund to fill budget deficit.

Egypt Government is planning to borrow EGP 478.5bn from the local market to fill their budget deficit. This fund will be use in the second quarter as the Finance Ministry plans to launch Treasury bill (T-Bill) and bond (T-Bonds).

According to the plans, the Finance Ministry reveals that the government will issues T-Bills worth EGP 456.75bn and T-bonds for EGP 21.75bn. Meanwhile, Central Bank of Egypt (CBE) will be in charge of the Launching the T-Bills and T-Bonds.

The T-Bills will offer for a term of three months for EGP 110.75bn while the T-bonds will be for a term of six months worth EGP 114.25bn. In addition, T-Bills for a term of nine months for EGP 111 bn and T-Bills for a term of 12 months for EGP 120.75bn.

The government’s plans also include launching T-Bills for a term of three years which will be due in january 2023 for EGP 4.75bn and other T-bonds for a term of  three years due  in June 2022 for EGP 2bn.

Last years, the government borrowed about EGP 1.8tn through T-Bills and T-Bonds plus about EGP 473.75bn during the Q1 of 2019. Banks working in the Egyptian Market are the largest sectors investing in T-Bills and T-Bonds.

Minister for Finance, Mohamed Moeit has reveal that the government is working on reducing many side to reduce the general deficit. He said it is aimed at decreasing the deficit and also target reducing the public debt from 108% of the GDP last fiscal year (FY) to 98% of FY.

 

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