Treasury bills outstanding, bonds valued at EGP 3.96 trillion as of June 2022: Ministry of Finance

The Ministry of Finance disclosed that the stock of Egyptian treasury bills and bonds was valued at around EGP 3.96 billion in June 2022.

According to a report published by the ministry on its website on Tuesday, the stock of treasury bills stood at around EGP 1.518 billion in June, comprising EGP 844.599 billion in 364-day bills, EGP 307.113 billion in 273-day bills, EGP 122.625 billion in 182-day bills and EGP 244.320 billion in 91-day bills.

These treasury bills will be due from July 5, 2022 to July 28, 2023, taking into account that other bills with the same maturities are issued on a weekly basis.

Additionally, outstanding bonds reached approximately EGP 2.441 billion in June 2022, of which approximately EGP 217.026 billion in zero-coupon bonds.

According to the Ministry of Finance, these bonds will mature from July 21, 2022 to January 18, 2037, given that other bond issues are made on a weekly basis, just like Treasury bills.

Figures obtained by Daily News Egypt earlier revealed the government’s intention to borrow EGP 818 billion in the local market during the first quarter of the 2022/23 financial year, in a bid to finance the budget deficit of the state.

The government’s plan included 52 treasury bill issues worth EGP 686.5 billion and 39 bond issues worth EGP 131.5 billion from July 1 to September 30, 2022.

In the same context, the Ministry of Finance revealed the size of outstanding foreign bonds in the first half of 2022.

According to the ministry, there are US dollar-denominated bonds worth about $34.21 billion that were offered from June 11, 2015 to September 30, 2021 and will mature from February 21, 2023 to February 16, 2061. The interest rate on these bonds varies between 3.875% and 8.875% with an average of 7.126%.

The Ministry of Finance has indicated that there are also euro-denominated bonds worth 4 billion euros, which were offered from April 16, 2018 to April 11, 2019 and will mature from April 11, 2025 to April 11. 2031. The interest rate of these bonds varies between 4.75% and 6.375% and averages of 5.477%.

In addition, there are Japanese yen bonds worth approximately 60 billion yen equivalent to $500 million which were offered on March 31, 2022 and will mature on March 31, 2027, and the rate of return is 0.85%.

Maait said the government is happy to issue Chinese yuan “panda bonds” worth the equivalent of $500 million.

Maait added, on the sidelines of a press conference on Monday, that sovereign sukuk worth between $1.5 billion and $2 billion are also expected to be issued, but international markets are currently not suitable in terms of liquidity and cost.

Maait said the debt-to-GDP ratio fell from 103% in June 2017 to 87.2% in June 2022, compared to a global public debt ratio of 99% of global GDP, and the ratio of the Debt also decreased by 15.6% of GDP from 2016 to 2022, compared to a 19.5% increase in emerging countries.

Maait confirmed that the government aims to reduce the debt-to-GDP ratio to 75% by 2026, pointing out that 77% of public debt is internal to institutions and individuals in Egypt, and only 23% is external in foreign currency. strong, and that the external debt of budgetary bodies stabilized at $81.4 billion in June 2022, i.e. 19.2% of GDP, against $81.3 billion in June 2021, knowing that this long-term debt has a average of 12 years and a cost of less than 6%.

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