The Egyptian Ministry of Finance sold 182- and 357-day T-bills worth EGP 6.5 billion on Thursday. The Ministry raised EGP 2.5 billion from 182-day T-bills and EGP 4 billion from 357-day T-bills.
The yields on 182-day T-bills ranged from 13.219% to 13.370%, while the average rate registered 13.338%.
The yields on 357-day T-bills ranged from 13.75% to 14%, while the average rate registered 13.968%.
This has raised the value of treasury bills and bonds offered by the Ministry to EGP 53.5 billion since the beginning of February, exceeding the Ministry’s target of raising EGP 52.5 billion in the current month. The Ministry also sold dollar-denominated T-bills worth US$ 819 million in this month.
The Ministry sells treasury bills and bonds so as to finance the widening budget deficit, although these instruments impose great burdens on the government as their returns exceed 16% at times.
A report released by the Ministry of Finance revealed that the budget deficit surged to EGP 119.8 billion during the first seven months of the current fiscal year, registering 6.7% of the country’s gross domestic product. The budget deficit is expected to reach EGP 180 billion by the end of the current fiscal year.
