Figures obtained by Daily News Egypt revealed that the government intends to expand borrowing from the local market by EGP 582.5bn, to bridge the chronic deficit in the state budget during the second quarter (Q2) of the fiscal year (FY) 2019/20.
According to these figures, the Ministry of Finance plans to issue treasury bills and bonds 1 October to the end of December 2019, making this the largest borrowing rate for the government by debt instruments ever.
The state budget deficit is expected to reach EGP 445.1bn by the end of FY 2019/20.
The Finance Ministry’s plan, a copy of which was obtained by Daily News Egypt, reveals that the government is targeting issuance of 56 T-bill auctions worth EGP 528.5bn and 28 T-bond offerings worth EGP 54bn.
In October, the Central Bank of Egypt (CBE), which carries out this function on behalf of the government, will issue T-bills and bonds worth EGP 208bn, then EGP 166.5bn worth of debt in November, and then EGP 208bn in December.
According to the plan, 91-day bills worth EGP 128bn will be auctioned as well as 182-day T-bills worth EGP 131bn, 273-day T-bills worth EGP 134.75bn, and 364-day T-bills worth EGP 134.75bn.
The government’s plan also includes offering 3-year bonds due in September 2022 worth EGP 10.5bn and another set of 3-year bonds to mature in December 2022 worth EGP 4.25bn.
The Finance Ministry is also offering 5-year bonds due in September 2024 worth EGP 14.75bn and 7-year bonds due in April 2026 worth EGP 5.5bn.
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