Main findings of Mueller report will not be released Saturday: US official    Sporadic clashes break out in latest French 'yellow vest' protests    Passengers airlifted from cruise ship stranded off Norway    Pope accepts resignation of Chilean cardinal accused of covering up abuse    Meet Egypt's youngest female football coach    Ghzela: living life despite marginalisation    Dutch not favourites against struggling Germany - Van Dijk    England boss Southgate not surprised by electric Sterling    Messi injured on return as Argentina lose 3-1 to Venezuela    Big explosion heard in Somali capital Mogadishu: Reuters witness    Baheya to establish integrated hospital for women's cancer treatment for EGP 880m    Egypt's first ‘ideal mother': woman's success story, struggles    Picolina: pebble art linking beauty, nature    Making Ends Meet    Dahabeya: passage through time on Nile river    thyssenkrupp wins major order for fertiliser complex in Egypt    Benban Solar Park wins WBG's best project award    Fitch upgrades Egypt's credit rating to B+    New investments of EGP 6.3bn injected in Egypt during February: MIIC    Varied paths of reform in Africa    Tutankhamun goes to Paris    Disney closes $71B deal for Fox entertainment assets    Geography, history, future: Umbrella for Arab-African integration    Israel kills Abu Leila who stabbed to death Israeli soldier    Greta    Darts for all    To be continued    Egypt's squash hub    International Universities to start its next academic year in the New Capital    A Broken Window play is the latest at Taliaa Theatre, don't miss it    Mustafa Al-Razzaz's art is on show at the Gezira Arts Centre    Don't miss Asmaa Waguih's photography show at the AUC Photographic Gallery    Egypt's Parliament began national dialogue over constitutional amendments    Mohammed Ali Palace celebrates Mother's Day with royal jewellery exhibition    New horizons    Not German Christian Democrats    National dialogue begins    Diaa Rashwan    Christchurch terror    Another year for Syria?    Africa anticipates CAF Champions League, Confederation Cup quarter-final draws    Shoukry in Muscat for Egyptian-Omani committee    Egypt parliament provisionally approves bill on protecting personal data    Uganda releases 14 Egyptian expats after embassy intervention    Right man for the right job    Op-ed review: Christchurch attacks, Press Syndicate's election    Irrigation Minister warns of water scarcity in Egypt    Egypt's Court of Cassation upholds verdict putting 169 Brotherhood members on terror list    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.





Yields on Egypt's T-Bills down by 0.34 - 0.83% after CBE interest-rate cut
Interest rates, accepted by finance ministry, decline on T-Bills of 91-day to 17.248 - 17.528%
Published in Daily News Egypt on 18 - 02 - 2019

Following the Central Bank of Egypt's (CBE) decision to cut interest rates by 1%, the yields on Egypt's treasury bills launched by the Ministry of Finance saw a decline on Sunday ranging between 0.34 and 0.83%.
On Sunday, the CBE, on behalf of the Ministry of Finance, issued treasury bills for maturity of 91 days for EGP 8.5bn.
The interest rates, accepted by the Ministry of Finance, on the T-Bills has declined to 17.248% for the lowest price, 17.528% for the highest price, and 17.453% on average, compared to 17.9%, 18.36%, and 18.202% in the last T-Bills offer launched on 10 February, a decline ranging between 0.625% and 0.832%.
Also on Sunday, the CBE issued other treasury bills for maturity of 273 days for EGP 8.5bn.
The interest rates, accepted by the ministry, in this offer declined to 17.5% for the lowest price, 17.8% for the highest price, and 17.686% on average, compared to 17.849%, 18.45%, and 18.296% in the last T-Bills offer on 3 February, a decline ranging between 0.349% and 0.65%.
Every 1% cut in interest rates saves EGP 30bn from the Ministry of Finance's allocations for the public debt bill, which would contribute in containing the budget deficit, according to Tarek Metwally, former deputy managing director and member of the board of directors of BLOM Bank Egypt.
He noted that keeping the inflation rates under control is the most important mission of the government in the upcoming period.
Metwally called on the government to keep on the facilitative policy the CBE has started to encourage the economic growth and increase banking loans.
"I believe that the interest rate cuts will not affect the inflow of foreign investment in debt instruments," Metwally said, noting that the current interest rate is higher than the normal world rates, which would put Egypt as one of the most attractive destinations in the world for foreign investments in the debt instruments.
He pointed out that the recent interest rate cuts were expected amid the decline of inflation and the CBE's plans to bring inflation rate to less than 10% in the upcoming period.
The government has revealed its intention to lower the internal and external public debt interest to EGP 502bn, representing 33% of total expenditure in the fiscal year (FY) 2019/20, compared to 37.8%, equivalent to EGP 541bn, of total expenditure in the current fiscal year. The government aims to achieve this level through cutting interest rates, decreasing budget deficit and public debt.
Banque Misr lowered the interest rates of the variable-yield saving instruments which are linked to the CBE's interest rate by 1% to become 16% instead of 17% before the cut.
Banque Misr also lowered interest rates by 1% on its VIP current accounts, as the higher interest rate will reach 10%.
The Assets and Liabilities Committee (ALCO) of Banque Misr was set to convene on Sunday to discuss the fate of the interest rates of other saving instruments. It is expected that the bank will cut the interest rates of short-term deposits and saving accounts by 1%.
Most of the liquidity of Banque Misr are in individual-owned saving certificates, while companies dominate the larger share of deposits.
The interest rate on 30 types of saving certificates for three and five years issued by about 24 banks decreased on Sunday in response to the CBE's interest rate cut.
Meanwhile, the analysts believe that the loans of companies related to the basic interest rate at the CBE are the main beneficiaries of the interest rate cut. However, they believe that the required increase in credit needs a decline in interest rates of no less than 3%, especially that the past three years have seen successive increases in CBE interest rates.


Clic here to read the story from its source.