The outstanding balances from treasury bonds in local currency owed to the government increased by EGP 13.034bn, to reach EGP 698.85bn at the end of January.
According to the Ministry of Finance, the balance at the end of December 2015 was EGP 685.815bn.
The ministry indicated in a recent report that there are two types of bonds in Egyptian pounds: the first being coupon yield bonds; the balance of which recorded the Ministry of Finance is EGP 631.023bn, with an average return rate of 12.862%. These bonds were proposed from 2 February 2008 until 5 January 2016. The interest rate on these bonds ranges between 9.15% and 17%.
The second type of bond, the zero coupon bonds, recorded a balance of EGP 67.825bn, with an average interest rate of 12.106%, according to the Ministry of Finance. Zero coupon bonds were proposed between 28 January 2014 and 12 January 2016. The average interest rate on these bonds is between 11.319% and 12.792%.
The payment of balances for coupon yield bonds is scheduled between February 2016 and November 2025; while that of zero coupon bonds will be between February 2016 and July 2017.
The Ministry of Finance said the bonds worth $3bn will be repaid on 17 December, 2016, with average interest rate of 3.5%, along with other bonds issued in global financial markets, worth $4.5bn to be repaid in the period between 1 July 2016 and 29 April 2040, with average interest rate of 5.333%.
The largest investors of treasury bonds and bills are banks operating in the Egyptian market. The government puts forward the treasury bonds and bills on a regular basis to cover the state budget deficit.
Treasury bonds and bills are proposed through 15 banks that are the primary dealers in the primary market. These banks resell a portion of these bills and bonds in the secondary market to retail investors, as well as local and foreign institutions.
The banks participating in the system include: the National Bank of Egypt, Banque Misr, Banque du Caire, Commercial International Bank (CIB), Citibank, HSBC Egypt, Misr Iran Development Bank, Qatar National Bank (QNB), Credit Agricole Egypt, Barclays Egypt, AlexBank Intesa Sanpaolo, Intesa Sanpaolo Group, Arab African International Bank, Export Development Bank of Egypt, Suez Canal Bank and Arab Bank.