Government targets EGP 262bn loan for budget deficit in Q1 of FY 2015/2016

The government intends to borrow EGP 262bn to fund the budget deficit in the first quarter (Q1) of the new fiscal year (FY) 2015/2016. The step comes due to a plan by the Ministry of Finance, in coordination with the Central Bank of Egypt (CBE), that was sent to a number of banks last week.

The ministry’s plan shows the government is looking to issue treasury bills worth EGP 189.5bn, and treasury bonds worth EGP 72.5bn in the period between the beginning of July and the end of September 2015.

The CBE, which will carry out this mission on behalf of the government, will launch treasury bills and bonds auctions with EGP 80bn next July. This is in comparison to auctions worth EGP 83.25bn next August, and other auctions next September worth EGP 98.75bn.

According to the Ministry of Finance’s plan, auctions will be launched for: 91-day treasury bills with EGP 35.5bn; 182-day treasury bills with EGP 42.5bn; in addition to auctions for 273-day bills with EGP 56bn; and 364-day bills with EGP 55.5bn.