CAIRO – 20 June 2022: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 6.5 billion in treasury bonds (T-bonds) on Monday, June 20.
The T-bonds were offered in three installments, with the first valued at LE 4.5 billion with a 1.5-year term, the second worth LE 1.25 billion with a three-year term, and the third worth LE 750 million with a seven-year term.
Earlier, the Ministry of Finance announced the possibility of reducing the accepted quantities of bills and bonds bids on the public treasury, issued in local currency until the end of the current fiscal year.
For the current fiscal year, the budget deficit is estimated to record 5.7 percent of gross domestic product (GDP) in light of the Russian-Ukrainian crisis, planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.
Egypt has paid about $24 billion since the beginning of 2022, of which $10 billion is external debt, and $14 billion is for foreign funds, the Central Bank of Egypt (CBE) revealed previously in June.
Data from the CBE showed that these amounts were directed to repay outstanding international loans and bonds; which reflects Egypt's commitment to pay all dues on time.
The Monetary Policy Committee (MPC) decided in May to raise the Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation by 200 basis points to 11.25 percent, 12.25 percent, and 11.75 percent, respectively. The discount rate was also raised by 200 basis points to 11.75 percent.