FILE – CBE
CAIRO – 21 October 2019: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, issued LE 3.75 billion in treasury bonds on Monday, Oct. 21.
The T-bonds were offered in two installments, with the first valued at LE 2.2 billion with a five-year term and the second worth LE 1.5 billion with a 10-year term.
For the current fiscal year, the budget deficit is estimated to record LE 445.1 billion, or 7.2 percent, planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.
Earlier in September, The Monetary Policy Committee of the Central Bank of Egypt (CBE) cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 100 basis points.
The overnight deposit rate, the overnight lending rate, and the rate of the main operation are cut to be at 13.25 percent, 14.25 percent, and 13.75 percent, higher than economists’ expectations.
A number of economists said the appeal of foreigners to Egyptian debt instruments would continue even after interest rates were cut.
Experts predict that interest rates on debt instruments will continue to fall due to falling interest rates, especially as they recorded a decline in their latest offer.
The Ministry of Finance aims to reduce the government debt to GDP ratio to 82.5 percent by the end of June 2020 and to 77.5 percent by the end of June 2022.