Finance Ministry Sells 182-, 364-Day T-Bills Worth EGP 6.5 Bln

The Egyptian Ministry of Finance sold 182- and 364-day treasury bills worth EGP 6.5 billion on Thursday. The Ministry raised EGP 2.5 billion from 182-day T-bills and EGP 4 billion from 364-day T-bills.

The yields on 182-day T-bills ranged from 13.199% to 13.281%, while the average return registered 13.260%. The yields on 364-day T-bills ranged from 13.850% to 13.94%, while the average return registered 13.908%.

The Ministry targets to sell 182-day T-bills worth EGP 10 billion and 364-day T-bills worth EGP 15.5 billion in March.

The Ministry sells treasury bills and bonds so as to finance the widening budget deficit, although these instruments impose huge burdens on the country as return on them exceed 16% at times.

Economic indicators reveal that the country will continue to sell these instruments so as to reduce the burgeoning budget deficit which reached EGP 119.8 billion in seven months since the start of the new fiscal year, registering 6.7% of the country’s gross domestic product (GDP). The budget deficit is expected to reach EGP 180 billion by the end of the current fiscal year.