Outstanding balances of treasury bills (T-Bills) and treasury bonds (T-Bonds) in the local currency owed by the government amounted to EGP 1.852tn till the end of April, according to the ministry of finance.
Banks operating in the Egyptian market are considered the largest investors in T-Bills and T-Bonds, which the government issues on a regular basis to cover the state’s budget deficit.
These money market instruments are proposed through 15 banks, which are the principal dealers in the primary market. These banks resell a share of these bills and bonds in the secondary market to retail investors, as well as to local and foreign institutions.
In a recent report, the ministry of finance explained that the total outstanding balances of T-Bills at the end of April reached EGP 1.15tn, including EGP 83.93bn with maturity of 91 days, EGP 205.17bn with maturity of 182 days, EGP 315.17bn for 273 days, and EGP 546.83bn of 364-day maturity.
According to the ministry, these T-Bills are due from the period of 7 May 2019 to 2 June 2020.
Regarding the local T-Bonds, the ministry explained that they amounted to EGP 701.18bn at the end of April 2019.
The bonds were offered in the period between 18 January 2005 and 2 April 2019, and will be repaid between 6 May 2019 and 6 November 2028.
Interest rates on these bonds range from 11.4% to 18.75%, averaging 15.33%.
In the same context, the ministry revealed an increase of outstanding international bonds to $23.21bn and €4bn.
The maturity of dollar bonds ranges from 5 to 30 years, while the maturity of euro-denominated bonds are between 8 and 12 years.