The Central Bank of Egypt (CBE) will issue treasury bonds (T-bonds) valued at EGP 2.5 billion on Monday on behalf of the Ministry of Finance.
The first tranche of the T-bonds stands at EGP 1.25 billion and will be offered through three-year notes, while the second tranche will be offered through seven-year notes worth EGP 1.25 billion, the CBE said via its official website.
The issuance will be used to finance the country’s budget deficit, the CBE added.
State-run banks are the largest holders of the government’s debt instruments.
In August, the CBE’s Monetary Policy Committee (MPC) slashed interest rates by 1.5%.
It is noteworthy that the Egyptian government aims to reduce the country’s public debt to gross domestic product (GDP) rate to 82.5% by the end of June 2020 and to 77.5% by the end of June 2022.