CAIRO: The Central Bank of Egypt (CBE) on behalf of the Ministry of Finance is scheduled to auction 3.75 billion EGP ($491 billion) in treasury bonds Monday, according to the bank’s official website.
The T-bonds are to be offered in two installments; the first valued at 2.5 billion EGP with a five-year term, and the second worth 1.25 billion EGP with a 10-year term.
Egypt’s government intends to borrow 455 billion EGP during fiscal year FY2014/15 (to end June 30,) in order to fill a soaring budget deficit.
Egypt’s cabinet approved an initial draft of the state budget for the new fiscal year 2015/2016 (to start July 1) with a deficit projected to reach 281 billion EGP (9.9 percent of GDP,) compared to 10.8 percent of GDP forecasted in the current FY, and 12.8 percent in FY 2013/2014.
The draft has yet to be submitted to President Abdel Fattah al-Sisi for ratification.
Minister of Investment Ashraf Salman said earlier in April that the government is working on slashing the budget shortfall to eight percent of GDP in the coming four years, Youm7 reported.