Cairo – Mubasher: Egypt’s Ministry of Finance (MOF) posted a 51% year-on-year surge in treasury bills (T-bills) and bonds issues for the second quarter of fiscal year 2017/2018.
The ministry is determined to issue T-bills and bonds of EGP 389.25 billion in Q2-17/18, with a rise of 51.25%, versus EGP 257.34 billion in Q2-17/18, according to data by the MOF.
The MOF’s plan includes issuing T-bills at EGP 357.5 billion for the fiscal quarter started October, while T-bonds amounts to about EGP 31.75 billion, the ministry mentioned in a statement.
Egypt’s issuance of T-bills and bonds stood at EGP 371 billion in Q1-17/18, and about EGP 342 billion in Q4-16/17.
Hinging on the debt instruments has aggravated the cost of debt on the general budget to reach EGP 380 billion over the coming fiscal year, compared to estimations of EGP 311 billion in the current fiscal year.
The government raised its forecast for the budget deficit to 10.9% of the gross domestic product (GDP) during the current fiscal year, while aiming to reduce it to 9% over the next year.
The MOF will issue T-bills of 91-day, 182- day, 273- day, and 364-day notes at EGP 87.25 billion, EGP 87.25 billion, EGP 91.5 billion, and EGP 91.5 billion, respectively, according to the statement.
Meanwhile, the MOF noted that T-bonds are distributed over three-year, five-year, seven-year, and ten-year notes at EGP 10.5 billion, EGP 7.25 billion, EGP 7.25 billion, and EGP 6.25 billion, respectively.
Egypt’s finance minister Amr El-Garhy said that Egypt is currently working on the preparation of an $8 billion foreign bonds programme, in coordination with global stock markets.
El-Garhy noted that Egypt will issue dollar-denominated bonds worth $3 billion to $4 billion, in addition to Euro-denominated bonds at EUR 1.5 billion.
