Egypt’s central bank issues LE24B on T-bills, bonds Monday

CAIRO - 27 July 2020: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, is set to issue LE 24 billion in treasury bills and bonds on Monday, July 27.

The T-bills are valued at LE 19 billion. They will be offered in two installments; the first installment is valued at LE 8.5 billion with a 91-day term and the second is worth LE 10.5 billion with a 266-day term. 

While t-bonds are valued at LE 5 billion  and will be offered in two installments; the first installment is valued at LE 4 billion with a five-year term and the second is worth LE 1 billion with a 15-year term. 

For the current fiscal year, the budget deficit is estimated to record 6.3 percent of gross domestic product (GDP), 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 in June 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 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.