The government is planning to offer treasury bills (T-Bills) and treasury bonds (T-Bonds) worth EGP 146.5bn in June within the plan to borrow EGP 478.5bn in the last quarter of fiscal year (FY) 2018/2019 to fund the state budget deficit.
The government borrowed about EGP 184bn from the local market through T-Bills and T-Bonds in April, and borrowed about EGP 148bn in May.
According to the ministry of finance, it is planned to launch T-Bills for a term of 91 days in June worth EGP 34.bn, T-Bills for a term of 182 days worth EGP 35bn, T-Bbills for a term of 273 days worth EGP 34bn, and T-Bills for a term of 364 days worth EGP 37bn.
The ministry will also be launching in June T-Bonds for a term of three years worth EGP 2bn, T-Bonds for a term of five years worth EGP 5.75bn, T-Bonds for a term of seven years worth EGP 5bn, T-Bonds for a term of 10 years worth EGP 1.5bn due in November 2027, and T-Bonds for a term of 10 years worth EGP 2.75bn due in May 2029.
The banks working in the Egyptian market are the largest sectors investing in the T-Bills and T-Bonds which the government offers regularly to cover the state budget deficit.
The ministry of finance revealed that the outstanding balances of T-Bills and T-Bonds in the local currency owed by the government until the end of April 2019 reached about EGP 1.852tn.
Furthermore, the ministry explained in a recent report that the total outstanding balances of T-Bills reached EGP 1.151tn, while T-Bonds reached EGP 701.188bn.
Within the same context, the ministry of finance revealed that Egypt’s balance of the T-Bonds offered in international markets reached $23.21bn and €4bn.
The terms of dollar T-Bbonds range between five to 30 years, while the term of the T-Bonds in euros range between eight to 12 years.