Finance Ministry Sells 182-, 357-Day T-Bills Worth EGP 6.8 Bln

The Egyptian Ministry of Finance sold 182- and 357-day treasury bills worth EGP 6.8 billion, missing the target of EGP 7 billion earlier set because banks demanded higher returns.

The Ministry raised EGP 2.8 billion from the 182-day T-bills, while it sought to sell EGP 3 billion worth of 182-day T-bills. The Ministry raised EGP 4 billion from the 357-day T-bills, the total value it sought.

The yields on 182-day T-bills ranged from 13.249% to 13.999%, while the average return registered 13.813%. The yields on 357-day T-bills ranged from 14.2% to 14.568%, while the average return registered 14.463%.

The Ministry plans to sell government debt instruments (treasury bills and bonds) worth EGP 69 billion next April.

The Ministry will sell in April 91-,182-, 273- and 364-day worth EGP 7 billion, EGP 15 billion, EGP 20 billion and EGP 20 billion, respectively. It will also offer during this month 3-year T-bonds worth EGP 3 billion (mature in October 2016), 5-year T-bonds worth EGP 3 billion (mature in October 2018) and 10-year T-bonds worth EGP one billion (mature in January 2023).

The Ministry announced it will offer treasury bills and bonds worth EGP 170 billion during Q4 of FY 2012/2013 (April-June).

The Ministry sells government debt instruments so as to finance the burgeoning budget deficit, although these instruments impose huge burdens on the government as their returns exceed 16% at times.

The Minister of Finance El-Morsi El-Sayed Hegazy announced today that the state’s budget deficit which reached EGP 146.5 billion during (July-February) of FY 2012/2013, registering 8.2% of the country’s GDP, compared to EGP 94.7 billion during the same period of the last fiscal year. The budget deficit is expected to reach EGP 188 billion by the end of the current fiscal year.