Cairo – Mubasher: The Central Bank of Egypt (CBE) will issue treasury bonds (T-bonds) worth EGP 4 billion on behalf of the Ministry of Finance.

The first tranche of the T-bonds stands at EGP 2 billion and will be offered through three-year notes, while the second tranche will be offered through seven-year notes valued at 2 billion, the CBE said via its official website.

The issuance will be used to finance the country’s budget deficit.

Earlier in November, the CBE decided to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 100 basis points (bps) to 12.25%, 13.25%, and 12.75%, respectively.

Previously, the Ministry of Finance revealed that it aims to diversify its financing sources and expand into local long-term financial instruments with the reduction in interest rates.

At the end of June, Egypt’s public debt to the country’s gross domestic product (GDP) ratio fell to 90.5%, compared to 98% at the end of June 2018.