The Egyptian Ministry of Finance sold 91- and 266-day treasury bills worth EGP 5.5 billion on Sunday. The Ministry raised EGP 1.5 billion from the 91-day T-bills and EGP 4 billion from the 266-day T-bills. The yields on 91-day T-bills ranged from 12.401% to 12.499%, while the average return registered 12.471%. The yields on 266-day T-bills ranged from 13.401% to 13.50%, while the average return registered 13.478%. This raises the value of treasury bills and bonds offered by the Finance Ministry in March to EGP 32 billion, while the Ministry targets to offer treasury bills and bonds worth EGP 51.5 billion in the current month. The Ministry had earlier announced it sold treasury bills and bonds worth EGP 98.5 billion in January and February, EGP 138 billion in Q3 of the current fiscal year (October-December) and EGP 169 billion in Q1 of the current fiscal year. The Ministry sells such government debt instruments so as to finance the increasing budget deficit, although they impose more burdens on the budget on the long term for having return that exceeds 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.
