The Egyptian Ministry of Finance intends to issue 52 treasury bill issues worth EGP 467.5 billion and 49 bond issues worth EGP 165.75 billion. October to December 2021.
It is part of the government’s plan to borrow EGP 633.25 billion in the local market in the second quarter (Q2) of fiscal year 2021/22, compared to EGP 587 billion in the first quarter of 2021/22.
The Central Bank of Egypt (CBE), which undertakes the task on behalf of the government, will issue treasury bill and bond issues worth EGP 195.25 billion in October, valued at 242.75 billion EGP in November and 195.25 billion EGP in December.
According to the plan, most T-bill offers will be for a 364-day period, as the ministry is expected to offer more offers worth EGP 192 billion and EGP 185 billion. for a period of 273 days. The other offers will include 91-day Treasury bills worth EGP 48.5 billion and 182-day bills worth EGP 42 billion.
The ministry will also step up the supply of short-term bonds significantly during the second quarter of 2021/22, where it is expected to offer two-year bonds worth EGP 53 billion, in addition to offer “Zero Coupon” bonds, for a period of one and one semester, for a value of EGP 35.5 billion.
It is also planned to offer 3-year bonds worth 58.5 billion EGP, 5-year bonds worth 7.75 billion EGP, 7-year bonds of worth 5.25 billion EGP, 10-year bonds worth 4.25 billion EGP and 15-year bonds worth 1.5 EGP. billion.
Banks operating in the Egyptian market are the main sectors investing in bonds and treasury bills, which the government regularly issues to cover the general state budget deficit.
These debt securities are offered through 15 banks that participate in the primary dealer system on the primary market, and these banks resell part of them on the secondary market to individual investors and to local and foreign institutions.
A recent CBE report revealed a decline in the total volume of outstanding treasury bill balances to around EGP 1.564 billion in July, from around EGP 1.588 billion in June 2021.
Investments by public sector banks in treasury bills reached around EGP 257.920 billion in July, compared to around EGP 262.057 billion in June.
Investments by banks specializing in treasury bills recorded EGP 37.062 billion in July 2021, compared to EGP 32.948 billion in June.
Investments by private sector banks amounted to EGP 323.186 billion in July, up from around EGP 350.546 billion in June.
Investments by branches of foreign banks recorded EGP 45.749 billion in July, compared to EGP 46.022 billion in June.
According to the CBE, the volume of domestic public debt stood at around EGP 4.742 billion in June 2020, accounting for around 81.5% of gross domestic product, of which 87.8% is owed by the government, 6% is owed by public economic bodies, and 6.2% are owed by the National Investment Bank (NIB).
The net balance of domestic debt owed by the government was about EGP 4.163 billion, an increase of about EGP 432.8 billion in fiscal year 2019/20, while the net balance from public economic bodies amounted to EGP 286.4 billion, an increase of EGP 3.5 billion. , and the net debt of the NIB, minus the bank’s indebtedness to public economic bodies and the bank’s investments in government bonds and bonds, amounted to about EGP 292.1 billion, a total of about EGP 292.1 billion. increase of EGP 23.7 billion.