The Ministry of Finance reported that the total amount of local treasury bills and bonds issued by the government reached EGP 4.67trn in August 2023, according to its latest report published on its website.

The report said that the treasury bills, which are short-term debt instruments, amounted to EGP 2.449trn, with different maturities ranging from 91 days to 364 days. The treasury bills are re-offered weekly and their maturity period extends from September 5 2023 to 27 August 2024.

The report also said that the treasury bonds, which are long-term debt instruments, amounted to EGP 2.250trn, with different types and maturities. The types include zero coupon bonds, which do not pay interest, and variable return bonds, which the ministry recently introduced. The treasury bonds are re-offered on a periodic weekly basis and their maturity period extends from 1 September 2023 to 18 January 2037.

The government issues treasury bills and bonds to cover the state’s budget deficit and to repay previous debts. Banks operating in the Egyptian market are the main investors in these debt instruments.

Daily News Egypt obtained divs that showed the government’s plan to borrow EGP 1.106trn from the local market during the first quarter of the 2023/2024 fiscal year, by issuing 52 bond tenders worth EGP 1.074trn and 25 bond tenders worth EGP 32.75bn. This reflects the government’s short-term liquidity needs.

The Ministry of Finance also revealed the size of the foreign bonds issued by the government until the end of August 2023. The foreign bonds are denominated in US dollars, euros, and Japanese yen, and have different maturities and interest rates.

The foreign bonds in US dollars amounted to $32.960bn, which were issued from 11 June 2015 to 30 September 2021, and will mature from 21 February 2023 to 16 February 2061. Their interest rates vary from 3.875% to 10.875%, with an average of 7.126%.

The foreign bonds in euros amounted to €4bn, which were issued from 16 April 2018 to 11 April 2019, and will mature from 11 April 2025 to 11 April 2031. Their interest rates vary from 4.75% to 6.375%, with an average of 5.477%.

The foreign bonds in the Japanese yen amounted to ¥60bn, equivalent to $500m. They were issued on 31 March 2022 and will mature on 31 March 2027. Their interest rate is 0.85%.

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