Ministry of Finance plans to sell 5.5 billion Egyptian pounds ($911 million) of bills today as an impasse between the government and parliament risks derailing loan talks with the International Monetary Fund. The dollar bonds declined.
MOF will seek bids for six- and 12- month notes valued at 2 billion pounds and 3.5 billion pounds, respectively. The government paid average yields of 14.829 percent on the six- month bills and 15.709 percent on the one-year securities at an auction last week.
The Freedom and Justice Party may reject a proposed $3.2 billion loan from the IMF when it is presented before parliament because the government hasn’t answered questions about the financing, Ashraf Badreldin, a legislator with the biggest parliamentary bloc, said yesterday. The comments come after Finance Minister Momtaz el-Saeed said Egypt may sign a letter of intent with the IMF this month for the loan, Bloomberg reported.
