CBE auctions EGP 39.5 bln in T-bills to fund budget deficit.

Ahram Online , Thursday 27 Apr 2023

The Central Bank of Egypt (CBE) auctioned on Thursday treasury bills (T-bills) worth EGP 39.5 billion ($1.28 billion) on Thursday, divided into two issues, to fund the budget deficit.

Egyptian pound
An Egyptian pound. Al-Ahram

The first issue amounts to EGP 16 billion, with a 182-day tenor that matures on 31 October, while the second issue totals EGP 23.5 billion, with a 364-day tenor, maturing on 30 April 2024.

The CBE typically issues T-bills on behalf of the Ministry of Finance to fund the budget deficit.

On 19 April, the CBE auctioned EGP 40 billion T-bills in two issues. The first issue had a tenor of 91 days and amounted to EGP 23 billion, while the second issue was worth EGP 17 billion and had a tenor of 273 days.

The accepted bids for the two issues amounted to EGP 24.915 billion and EGP 1.8 billion, respectively.

According to recent reports, Egypt's budget deficit rose to over EGP 367 billion (nearly $12 billion) in the first half (1H) of FY2022/2023 (July-December 2022), accounting for around four percent of the gross domestic product (GDP).

*USD traded at 30.90 EGP on Thursday. 

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