In coordination with the Ministry of Finance، the Central Bank of Egypt (CBE)، is set to issue EGP 2.5 billion ($141،65 million) in treasury bond on Monday.
The T-bonds are to be offered in two installments، with the first valued at EGP 1.5 billion with a five-year term and the second worth EGP 1 billion with a 10-year term.
For the current fiscal year، the budget deficit is estimated to record EGP 370 billion، planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.
Egypt receives financial aid in the shape of grants and loans from Arab countries to cover the deficit.
Noteworthy، a Treasury bill (T-Bill) is a short-term debt obligation backed by the Treasury Dept. of the U.S. government with a maturity of less than one-year، sold in denominations of $1،000 up to a maximum purchase of $5 million. T-bills have various maturities and are issued at a discount from par، according to Investopedia.
When an investor purchases a T-Bill، the U.S. government effectively writes investors an IOU; they do not receive regular interest payments as with a coupon bond، but a T-Bill does include interest، reflected in the amount it pays when it matures.
The longer the maturity date، the higher the interest rate that the T-Bill will pay to the investor.