Egypt FinMin Plans to Borrow EGP63 bln from Banks by Nov

The Egyptian Finance Ministry is planning to borrow EGP 63 billion from the banks and the domestic market through various maturities of treasury bills and bonds, compared to EGP 76.5 billion, an actual cost of borrowing during October 2013.

The Ministry has significantly focused on short –term treasury bills which reached EGP 48 billion within November in its timetable, in order to finance the budget-deficit that exceeded EGP 20 billion monthly, in addition paying earlier benefits, worth 80% of the target month.

The timetable has pointed on offering 91-and-182 day, 273-364 day treasury bills worth EGP 8, 10, 14,16 billion respectively.

The Ministry is targeting to raise treasury bonds with EGP 15 billion, noting to offer 3-and-5 year,7-and-10 year worth EGP 3 billion for each offing, in addition offering zero-coupon bonds worth EGP 3 billion.

The gross domestic debt has recorded remarkable boost during the recent period to hit EGP 275 billion within one fiscal year up EGP 1.404 trillion at the end of June 2013, as the government is fully based on the domestic debts to provide financial measures and pay the budget-deficit assisted by foreign grants and aids without any real impact of significant economic growth, to increase state revenues during the coming period and paid to dispense with borrowing from banks gradually.