The Egyptian Ministry of Finance sold 91-and 273-day treasury bills worth EGP 5.5 billion on Sunday. The Ministry raised EGP 1.5 billion from 91-day T-bills and EGP 4 billion from 273-day T-bills. The yields on 91-day T-bills ranged from 12.550% to 12.64%, while the average return registered 12.616%. The yields on 273-day T-bills ranged from 13.50% to 13.650%, while the average return registered 13.623%. The Ministry stated it will offer in March 91-, 182-, 273-, and 364-day T-bills worth EGP 6 billion, EGP 10 billion, EGP 15.5 billion and EGP 15.5 billion, respectively. The Ministry will also offer 3-year T-bonds worth EGP 1 billion (mature in January 2016), 5-year T-bonds worth EGP 2 billion (mature in November 2017), 7-year T-bonds worth EGP 1 billion (mature in November 2019) and 10-year T-bonds worth EGP 500 million (mature in January 2023). The Ministry sells treasury bills and bonds so as to finance the widening budget deficit, although these instruments impose huge burdens on the country as the return on them exceed 16% at times. Economic indicators reveal that the country will continue to sell these instruments so as to reduce the burgeoning budget deficit which reached EGP 119.8 billion in seven months since the start of the new fiscal year, registering 6.7% of the country gross domestic product (GDP). The budget deficit is expected to reach EGP 180 billion by the end of the current fiscal year.
