Egypt's central bank issues LE 11B in T-bonds Monday

CAIRO – 16 November 2020: The Central Bank of Egypt (CBE), on behalf of the Ministry of Finance, issued LE 11 billion in treasury bonds on Monday, Nov. 11. 

The T-bonds were offered in three installments, with the first valued at LE 2.5 billion with a two-year term, and the second worth LE 5 billion with a five-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 Thursday, Nov. 12, to cut the overnight deposit rate, overnight lending rate, and the rate of the main operation by 50 basis points to 8.25 percent, 9.25 percent, and 8.75 percent, respectively. Moreover, the discount rate was also cut by 50 basis points to 8.75 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.