The Ministry of Finance announced the Central Bank of Egypt is to issue treasury bills and bonds, amounting to EGP 52 billion during September, state-owned news agency MENA has reported. The government will issue 91 day, 182 day, 273 day and 364 day treasury bills, amounting to EGP three billion, EGP eight billion, EGP 15 billion and EGP 14 billion respectively. Three year bonds will amount to EGP four billion, five year bonds to EGP three billion, seven year bonds to EGP three billion, and ten year bonds to EGP two billion. The government's scramble to alleviate the widening budget deficit continues on the domestic fiscal front. What could be regarded as an outline of the government's fiscal plan, the government strategy to bridge budget deficit is two-fold; investing in the public service sector financed by external loans from international financial institutions, and issuing treasury bills and bonds to maintain domestic cash flow, Ahram daily reported Ashraf el-Arabi, Minister of Planning and International Co-operation as saying. The government also decided to issue one year euro treasury bills, which saw huge demand for purchase on the part of major banks eager to invest their large euro deposits. It was reported yesterday that banks offered up to €580 million and the government accepted €500 million at an interest rate of 3.245 percent. Issuance of euro treasury bills for the first time contribute to lessen the budget deficit and enhance foreign currency reserves, MENA reported Momtaz el Saeed, Minister of Finance as saying.
