CBE issues LE 18.7B in T-bills Thursday

CAIRO – 27 September 2018: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 18.7 billion in treasury bills on Thursday.

The T-bills are to be offered in two installments, with the first valued at LE 9.2 billion with a 364-day term and the second worth LE 9.5 billion with a 182-day term.

T-bills are issued every Sunday and Thursday.

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.

Foreign investors’ investments in the Egyptian government debt instruments recorded $23.1 billion by the end of March 2018, up from about $20 billion in December.

Egypt needs to fund 2018/2019 budget by LE 714.64 billion; LE 511.21 billion will be provided from 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 for 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.