CBE offers EGP 16bn T-bills on Sunday

The Central Bank of Egypt (CBE) will offer treasury bills (T-bills) worth 16 billion Egyptian pounds on Sunday on behalf of the Ministry of Finance.

The first tranche of the T-bills will be offered through 91-day notes valued at 4.5 billion pounds, while the second tranche is worth 11.5 billion pounds and will be offered through 266-day notes, the CBE said on its official website.

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

In November 2020, the CBE’s Monetary Policy Committee (MPC) decided to cut the overnight deposit rate, the overnight lending rate, and the rate of the main operation by 0.5 percent to 8.25 percent, 9.25 percent, and 8.75 percent, respectively.

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