Egyptian FinMin Aims to Borrow EGP206.5 bln T-Bills, Bonds Within 3 Months

The Egyptian Finance Ministry is aiming to borrow EGP 206.5 billion from the local market throughout issuing various treasury bills and bonds within the coming three months so as to register the highest recorded in the history in compared to EGP 138 billion in 2012.

The Ministry has pointed out in its timetable to the three offerings of the next 3 months, Amwal Al-Ghad has obtained a copy of these offerings, to focus on short-term-debt, registering EGP 166 billion to meet with the previous benefits and to face worsening budget deficient.

The Ministry has revealed that it is planning to raise  182- and 91 day, 273-and 364 day with EGP 27.5, 34.5, 48.5 and 55.5 billion respectively.

The timetable has targeted to offer 3-and-5 year, 7-and-10 year worth EGP 10.5, 7.5, 9, 7.5 billion respectively, in addition offering 18-month zero-coupon bonds(without return), worth EGP 6 billion after the first two offerings have been succeeded in September.

According to the ministry’s timetable October month topped first as the highest offering value with EGP 76.5 billion, whereas the targeted offerings of November up EGP 63 billion and EGP 67 billion in December.

The government is relaying significantly on borrowing from banks in order to finance its expansion plan ,stimulate investments and financing the budget deficient which is expected to rise to 10% instead of 9% as result of applying the minimum wage, according to the recent statements of the Finance Minister.

The monetary policy of the country has raised the deficient indexes which reached EGP 239.9 billion within the last fiscal year, and the total local debts reached EGP 1404.7 billion in June-end registering 81% from the gross domestic product (GDP) and with EGP 275.7 billion increase every year in compared to EGP 1129 billion in June 2012 due to the suspend of investment activity movement, as well as the increase of government’s treasury bonds and bills in the last year to record EGP 614 billion.

The report issued by the Ministry of Finance explained that the balance of domestic debt budget exacerbated by the increase of treasury bills and bonds to reach EGP 425.8 billion and EGP 315.5 billion for each one respectively.