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CBE offers EGP 13.25bn T-bonds on Monday

CBE offers EGP 13.25bn T-bonds on Monday
The issuance will be used to finance the country’s budget deficit

Cairo – Mubasher: The Central Bank of Egypt (CBE) will offer treasury bonds (T-bonds) worth EGP 13.25 billion on Monday on behalf of the Ministry of Finance.

The first tranche of the T-bonds will be offered through three-year notes valued at EGP 9.5 billion, while the second tranche is worth EGP 750 million and will be offered through seven-year notes, the CBE said on its official website.

The CBE will also offer 1.5-year notes worth EGP 3 billion. 

The issuance will be used to finance the country’s budget deficit. State-run banks are the top purchasers of government debt instruments.

In October, the CBE’s Monetary Policy Committee (MPC) decided to leave interest rates on hold for the eighth time in a row.

In November 2020, the MPC cut the overnight deposit rate, the overnight lending rate, and the main operation rate by 0.5% to 8.25%, 9.25%, and 8.75%, respectively.

In June 2020, the Minister of Finance, Mohamed Maait, issued a decision to establish a unit at the Egyptian Tax Authority to follow up on the collection and supply of taxes on returns of T-bills and bonds.

In May 2020, Egypt secured a $2.7 billion loan from the International Monetary Fund (IMF) under the rapid financing instrument (RFI).