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Elham AbolFateh

Business

CBE issues T-bills worth EGP 17 bln on Sunday

Sunday 14/April/2019 - 01:22 PM
The Central Bank
The Central Bank of Egypt
Hassnein Tayea
The Central Bank of Egypt (CBE) issued on behalf of the Ministry of Finance، treasury bills for maturities (91 and 273) days worth EGP 17 billion، on Sunday.

The CBE seeks to sell its offers of treasury bills for maturities of 91 days for EGP 8.5 billion and 273 days for EGP 8.5 billion.

The move comes to reduce the deficit in the state budget.

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.

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