The outstanding balances of Treasury Bonds (T-Bonds) and Bills (T-Bills) owed by the government registered at EGP 2.006tn at the end of September 2018, according to reports from the Central Bank of Egypt (CBE) and the Ministry of Finance.
According to the CBE, outstanding balances of T-bills reached EGP 1.305tn at the end of September. These bills have maturity periods between 91 to 364 days, mostly ranging between 357 and 364 days.
Furthermore, the Ministry of Finance revealed that the outstanding balances of T-bonds recorded EGP 700.599bn at the end of September. The interest rates on these bonds range from 11.4% to 18.75%, averaging 14.905%.
These bonds were offered in the period from 18 January 2005 to 7 August 2018. Approximately EGP 17.4bn of these bonds were repaid in 25 October 2018, while the remaining balance will be paid between 8 November 2018 and 8 May 2028.
Aside from local currency bonds, an additional $18bn worth of international bonds were offered. These bonds have maturity periods of 1-30 years, due to be repaid between 10 December 2018 and 21 February 2048, with an interest rate between 4.622 and 8.5%, and an average of 4.726%.
Moreover, another €2bn worth of international bonds were offered by the Ministry of Finance on 16 April 2018, distributed over two tranches: the first of €1bn was at a return of 4.75%, due on 16 April 2026, while the second tranche worth €1bn bears an interest of 5.625% due on 16 April 2030.
Last week, the CBE noted that domestic debt increased to EGP 3.694tn at the end of June 2018, compared to EGP 3.536tn at the end of March 2018, up by EGP 158.4bn.
Banks working in the Egyptian market are considered the largest investors in bonds and treasury bills, which the government issues on a regular basis to cover the state’s budget deficit.
The figures obtained by Daily News Egypt have reflected the government’s intention to offer more T-bills and T-bonds, worth EGP 498.75bn, between October and the end of December 2018. This includes T-bonds worth EGP 481bn and T-bills worth EGP 17.75bn.
According to the CBE, the net domestic government debt rose from EGP 2.9tn at the end of March 2018 to EGP 3.12tn at the end of June 2018.
The net indebtedness of public economic bodies also increased to EGP 317.6bn at the end of June, compared to EGP 287.3bn at the end of March, while the net indebtedness of the National Investment Bank registered EGP 473.02bn and internal debts between government agencies reached EGP 216.03bn.