The Central Bank of Egypt (CBE) will offer two types of treasury bonds (T-bonds) in an auction on Monday, in coordination with the Ministry of Finance, with a total investment target of EGP 12.5 billion.
The auction includes five-year term T-bonds with a total value of EGP 7 billion, and 10-year term T-bonds with a total value of EGP 5.5 billion.
The maturity date for the five-year term T-bonds is 12 January 2026, while the maturity date of the 10-year term T-bonds will be 12 January 2031.
Auctioning off T-bonds is a method to fill Egypt’s budget deficit.
In the first half of the current FY2020/2021, Egypt’s budget deficit to GDP ratio declined to 3.6 percent, down from 4.1 percent in the same period of FY2019/2020, achieving a budget initial surplus of EGP 14 billion, according to the Ministry of Finance.
In February, Minister of Finance Mohamed Maait announced that Egypt’s total budget deficit to GDP ratio is expected to come in at 6.5 percent in the coming FY2021-2022 and continue to fall to post 5.3 percent and 4.6 percent in FY2022/2023 and FY2023/2024.
The current FY2020/2021 will conclude by the end of June.