CBE auctions EGP 83 bln T-bills on Tuesday

Ahram Online , Wednesday 26 Jul 2023

The Central Bank of Egypt (CBE) auctioned EGP 83 billion ($2.7 billion) in treasury bills (T-bills) on Tuesday to finance the government's debt, with two maturities available.

The Central Bank of Egypt (CBE) headquarters, Cairo, Egypt. AP
The Central Bank of Egypt (CBE) headquarters, Cairo, Egypt. AP


 According to the CBE's official website, the fourth issues are as follows:

An EGP 24 billion auction with a 364-day tenor to be matured on 23 July 2024.

An EGP 19 billion auction with a 182-day tenor to be matured on 23 January 2024.

An EGP 23 billion auction with a 91-day tenor to be matured on 24 October 2023.

An EGP 17 billion auction with a 273-day tenor to be matured on 23 April 2024.

The previous four T-bill issuances by the CBE had mixed results. The most recent auction on 24 July, offering EGP 40 billion in 91- and 273-day tenors, collected only EGP 37 billion at an average rate of 23.5 percent, exceeding the CBE's interest rates of 18.25 percent.

The CBE auctioned EGP 43 billion T-bills on 19 July in two issuances, with 182-day and 364-day tenors, collecting almost EGP 67 billion at an average yield of 24 percent.

Recent reports indicate that in H1 of FY2022/23 (July-December 2022), Egypt's budget deficit surged to over EGP 367 billion (almost $12 billion), equating to roughly 4 percent of the GDP.

Egypt has committed to achieving a budget deficit of 6.1 percent of the GDP and a gross debt ceiling of 92.1 percent of the GDP by the end of the unreleased FY 2022/23.

In May, the government raised its budget deficit estimate for FY 2023/24, which began on 1 July, to 6.9 percent of GDP, up from the previous estimate of 6.3 percent.

Egypt's external debt increased by 5.1 percent in Q4 of 2022, reaching $162.94 billion, up from $154.94 billion in the previous quarter.

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