Figures obtained by Daily News Egypt revealed that the government planned to borrow EGP 602.25 billion in the local market in the third quarter (3Q) of fiscal year 20211/22.
According to the Egyptian government’s plan, the Ministry of Finance intends to issue 52 offers for T-bills worth EGP 405 billion and 48 offers for T-bills (T -bonds) worth 197.25 billion EGP during the period from January 1 to the end of March 2022.
The Central Bank of Egypt (CBE), which will perform this task on behalf of the government, will issue offers for treasury bills and bonds worth EGP 186 billion in January, EGP 186 billion in January. February and EGP 230.25 billion in March.
According to the plan, the ministry focused most of its issuance on 182-day bills worth EGP 165.5 billion. Its issues also include 273-day T-bills valued at EGP 116.5 billion, 364-day T-bills valued at EGP 87.5 billion and 91-day T-bills. days worth EGP 35.5 billion.
The ministry has also stepped up the supply of short-term bonds significantly during the third quarter of fiscal year 2021/22 and is expected to issue “Zero Coupon” bonds for a year and a half for a value of 155.5. billion EGP.
In addition, the ministry is expected to offer two-year Treasury bonds worth EGP 6 billion, 3-year Treasury bonds worth EGP 17 billion, 5-year Treasury bonds worth EGP 7.5 billion, 7-year Treasury bonds worth EGP 6 billion, 10 T-bonds worth EGP 3.75 billion and bonds 15-year treasury worth EGP 1.5 billion.
Banks active in the Egyptian market are the largest investors in treasury bills and bonds, which the government periodically offers to cover the general state budget deficit.
These bonds and notes are offered through the intermediary of 15 banks which participate in the primary dealer system on the primary market, and these banks resell part of them on the secondary market to private investors and to local and foreign institutions.
The CBE recently revealed that the volume of outstanding treasury bill balances had declined to EGP 1.470 billion at the end of October 2021, from EGP 1.517 billion recorded at the end of September 2021.
According to the CBE, investments by public sector banks in treasury bills amounted to EGP 183.807 billion at the end of October, compared to EGP 188.891 billion in September.
In contrast, private sector bank investments amounted to EGP 330.611 billion at the end of October, compared to EGP 345.261 billion in September.
In addition, the investments of specialized banks amounted to 45.216 billion EGP at the end of October, against 45.685 billion EGP at the end of September 2021, while the investments of the branches of foreign banks amounted to 40.704 billion EGP, against 39.665 billion EGP.