Egypt’s Finance Offered T- Bills Worth EGP38 Bln In June

Egyptian Ministry of Finance succeeded in covering tenders of treasury bills and bonds at value amount to EGP 38.248 billion during May with decline worth EGP 11.73 billion against the target of EGP 50 million.

The Ministry of Finance mentioned that the total value of the offered treasury bills of AGAL 91- , 182- , 273- , 364-days worth EGP 6.5, 8.8, 8 and 11.5 billion in the row. Moreover, the total value of the offered treasury bonds of AGAL 3, 5 , 7 and 10 years worth EGP 1.1 , 1.5 , 0.3 and  0.5 billion successively.

Furthermore, ministry of finance failed to offer treasury bills and bonds at value of EGP 11.7

billion during last May because the banks raised excessively the returns, driven by the decline of Egypt’s credit ratings which made the Egyptian treasury bill and bonds as an undesirable investment as well as increasing the financial burdens and decreasing the mechanisms to provide the necessary funding.

The ministry intends to raise the treasury bills and bonds to EGP 60.5 billion next May against EGP 34.4 billion during the same period of the last fiscal year. It resorts to offer treasury bills and bonds to face the exacerbated deficit in the State’s budget that worth EGP 184.8 billion during July- April in the fiscal year of 2012-2013 which recorded 10.6% out of the Gross Domestic Product. It is also expected to exceed EGP 200 billion by the end of the current year whereas the deficit, in the general budget in the fiscal year 2013 -2014, reached EGP 197 billion.