Egypt's central bank auctions €600 mln in treasury bills on Monday

The t-bills are to be repaid on 13 August 2024 at a yield that has not yet been announced.

The last Euro t-bills issued by the CBE were on 7 November 2022 with a 364-day tenor. At that issuance, the central bank required €695 million and accepted €699.2 million in bids at an average yield of 2.3 percent.

According to the European Central Bank, the average yield of one-year Euro bonds is 3.5 percent.

Usually, the CBE issues T-bills on behalf of the Ministry of Finance to finance the budget deficit.

Egypt's budget deficit accounted for six percent of its GDP in the fiscal year 2022/2023, according to Minster of Finance Mohamed Maait. The country's debt-to-GDP ratio is estimated at 95.6 percent for the same year. At the same time, the country's GDP reached EGP 9.8 trillion ($318.23 billion).

Egypt's external debt increased by 5.1 percent in Q4 of 2022, reaching $162.94 billion, up from $154.94 billion in the previous quarter.

The government has increased its budget deficit estimate to 6.9 percent of GDP for FY2023/2024, which started on 1 July.