Egypt's central bank issues LE 7B in T-bonds Monday

CAIRO – 11 May 2020: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, issued LE 7 billion in treasury bonds on Monday, May 11.

The T-bonds were offered in two installments, with the first valued at LE 3.75 billion with a three-year term and the second worth LE 3.25 billion with a seven-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.

The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided Monday to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation in an emergency meeting by 300 basis points.

The overnight deposit rate, the overnight lending rate, and the rate of the main operation are cut to reach 9.25 percent, 10.25 percent, and 9.75 percent, respectively.

Moreover, credit and discount rates are cut at 9.75 percent from 12.75 percent.

Egypt's 2020/2021 draft budget aims to reduce public debt of GDP to 82.7 percent by end of June 2021, up from earlier target of 82.5 percent by the end of June 2020 and to 77.5 percent by the end of June 2022.