The Central Bank of Egypt (CBE)، issued on behalf of the Ministry of Finance، treasury bills worth EGP 18 billion on Thursday.
The CBE seeks to sell its offers of treasury bills for maturities of 182 days for EGP 8.750 billion and 364 day- term worth EGP 9.250 billion.
For the current fiscal year، the budget deficit is estimated to record EGP 438.59 billion، or 8.4 percent، planned by the ministry to be financed through treasury bills and bonds and through international and Arab loans.
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.