Egypt's central bank issues LE 23.25B in T-bonds, bills Monday

CAIRO – 1 June 2020: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, issued LE 23.25 billion in treasury bonds and bills on Monday, June 1.

The T-bills are at a value of LE 20 billion. They will be offered in two installments; the first installment is valued at LE 9.5 billion with a 91-day term and the second is worth LE 10.5 billion with a 273-day term.

While the T-bonds will be offered at a value of LE 3.25 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.

The Monetary Policy Committee of the Central Bank of Egypt (CBE) decided May 14 to keep the overnight deposit rate, the overnight lending rate, and the rate of the main operation at 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.

Earlier, CBE decided in March 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.

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.