FILE - CBE FILE - CBE

CBE issues LE 1.75B in T-bonds Monday

Mon, Jun. 17, 2019
CAIRO – 17 June 2019: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, issued LE 1.7 billion in treasury bonds on Monday, June 17.

The T-bonds were offered in two installments, with the first valued at LE 750 million with a 10-year term and the second worth LE 1 billion with a five-year term.

During June, the Ministry of Finance will auction three-year treasury bonds (maturing in June2022) worth LE 2 billion, five-year bonds (maturing in April 2024) worth LE 1.75 billion, seven-year bonds (maturing in April 2026) for LE 1.5 billion, and ten -year bonds (maturing in May 2029) at LE 1.25 billion.

The ministry said it will auction three-year treasury bonds (maturing in January 2023) worth 4.75 billion, three-year bonds (maturing in June 2022)worth LE 2 billion, five-year bonds (maturing in April 2024) for LE 5.75 billion, and seven-year bonds (maturing in April 2026) at LE 5 billion.

The Finance Ministry announced earlier that it will auction treasury bills and bonds at a total value of LE 478.5 billion during the fourth quarter of fiscal year 2018/2019.

As per T-bonds, the ministry will auction three-year treasury bonds (maturing in January 2023) worth 4.75 billion, three-year bonds (maturing in June 2022)worth LE 2 billion, five-year bonds (maturing in April 2024) for LE 5.75 billion, and seven-year bonds (maturing in April 2026) at LE 5 billion.

It will also auction 10-year t-bonds (maturing in November 2027) at a total value of LE 1.5 billion, and 10-year t-bonds (maturing in May 2029) at LE 2.75 billion.

The Monetary Policy Committee of the Central Bank of Egypt (CBE) kept the overnight deposit rate and the overnight lending rate at 15.75 percent and 16.75 percent, respectively, during May's meeting.

Previously, Ministry of Finance announced financial treatments on treasury bills and bonds, Finance Minister Mohamed Ma’it revealed that the reason behind the financial treatments of T-bills' taxes, saying that it's one of the rights of the treasury.

Ma'it notes the share of the treasury from the taxes wasn't collected before.

Financial modifications on T-bills save treasury rights: Min.

CAIRO-2 December 2018: Minister of Finance Mohamed Ma'it revealed the reason behind the financial treatments of T-bills' taxes, saying that it's one of the rights of the treasury. Ma'it notes the share of the treasury from the taxes wasn't collected before.




During December, The Financial Regulatory Authority (FRA) issued a decree allowing companies to offer and issue short-term bonds.

According to the decree, these companies included joint stock companies and shareholding companies, as well as companies authorized to engage in a non-bank financial activity after getting the authority's approval, with banks subject to the Central Bank's approval.

FRA determines rules, procedures for short-term bonds' issuance

CAIRO - 18 December 2018: The Financial Regulatory Authority (FRA) issued decree No. 172 of 2018 concerning the rules and procedures for issuing and offering short-term bonds. The authority determined, through the decision, which companies are entitled to issue and offer short-term bonds.




Meanwhile, Egypt conducted financial treatments of treasury bills and bonds' taxes. Minister of Finance Mohamed Ma'it revealed that the reason behind the financial treatments of T-bills’ taxes is that it is one of the rights of the treasury.

Financial modifications on T-bills save treasury rights: Min.

CAIRO-2 December 2018: Minister of Finance Mohamed Ma'it revealed the reason behind the financial treatments of T-bills' taxes, saying that it's one of the rights of the treasury. Ma'it notes the share of the treasury from the taxes wasn't collected before.




Earlier in 2018, Egypt canceled bids for treasury bonds four times, each worth LE 3.5 billion, amid calls to raise its interest rates.

For the current fiscal year, the budget deficit is estimated to record LE 438.59 billion, or 8.4 percent, planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.

Egypt needs to fund 2018/2019 budget by LE 714.64 billion; LE 511.21 billion will be provided by domestic debt instrument and the rest will come from foreign financing through the issuance of bonds and the IMF loan.

In November 2016, the Executive Board of the IMF approved a $12 billion loan as a financial assistance to Egypt to support the Egyptian economic reform program.

Upon the board's approval in November, Egypt floated its currency, losing around 50 percent of its value, as part of the economic reform program which imposed taxes, including the value-added tax (VAT), and cut energy subsidies, all with the aim of trimming the budget deficit.

 
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