Egypt's central bank auctions €600 mln in treasury bills on Monday

Ahram Online , Monday 14 Aug 2023

The Central Bank of Egypt (CBE) auctioned €600 million ($656.29 million) worth of treasury bills on Monday, according to the bank's website.

Euro bills. Stock image.
Euro bills. Stock image.


The t-bills are to be repaid on 13 August 2024 at a yield that has not yet been announced.

The last Euro t-bills issued by the CBE were on 7 November 2022 with a 364-day tenor. At that issuance, the central bank required €695 million and accepted €699.2 million in bids at an average yield of 2.3 percent.

According to the European Central Bank, the average yield of one-year Euro bonds is 3.5 percent.

Usually, the CBE issues T-bills on behalf of the Ministry of Finance to finance the budget deficit.

Egypt's budget deficit accounted for six percent of its GDP in the fiscal year 2022/2023, according to Minster of Finance Mohamed Maait. The country's debt-to-GDP ratio is estimated at 95.6 percent for the same year. At the same time, the country's GDP reached EGP 9.8 trillion ($318.23 billion).

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.

The government has increased its budget deficit estimate to 6.9 percent of GDP for FY2023/2024, which started on 1 July.

Egypt is coping with a shortage of US dollar liquidity in the local market and a financing gap estimated at $17 billion through 2026. The country has been increasing its efforts to fulfil its commitments to the IMF under the Extended Fund Facility (EFF) loan programme, approved in December 2022. 

Under the agreement, the government aims to decrease the gross debt-to-GDP ratio to approximately 83 percent by FY2026/27.

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