CAIRO – 28 March 2022: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 14.25 billion in treasury bonds (T-bonds) on Monday, March 28.
The T-bonds were offered in four installments, with the first valued at LE 2 billion with a three-year term, the second worth LE 750 million with a seven-year term, and the fourth worth LE 11.5 billion with a 1.5-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.
The Monetary Policy Committee (MPC) decided in an exceptional meeting on March 21, to raise the Central Bank of Egypt’s (CBE) overnight deposit rate, overnight lending rate, and the rate of the main operation by 100 basis points (bps) to 9.25 percent, 10.25 percent, and 9.75 percent, respectively.
The discount rate was also raised by 100 bps to 9.75 percent.