Government Plans To Borrow EGP 1.983Trn From Local Market In Q1 2025
Date
1/2/2025 12:21:14 AM
(MENAFN- Daily News Egypt) The Egyptian government is set to borrow EGP 1.983trn from the local market during the first quarter of 2025 to meet previous debt obligations and finance the state's budget deficit. According to a plan released by the Ministry of Finance, 48 treasury bill auctions worth EGP 1.780trn and 40 bond auctions worth EGP 203bn are scheduled from January 1 to March 31.
The Central bank of Egypt, which manages this process on behalf of the government, will issue a total of EGP 612bn in treasury bills and bonds in January, followed by EGP 641bn in February, and EGP 730bn in March.
The planned treasury bill auctions will include EGP 330bn for 91-day bills, EGP 470bn for 182-day bills, EGP 470bn for 273-day bills, and EGP 510bn for 364-day bills. Additionally, the government will issue a variety of bonds, including EGP 39bn for two-year bonds, EGP 116bn for three-year bonds, EGP 14bn for three-year floating-rate bonds, EGP 25bn for five-year bonds, and EGP 9bn for five-year floating-rate bonds.
The banking sector remains the primary investor in government-issued treasury bills and bonds, which are regularly used to bridge the state's budget deficit. These debt instruments are offered through 15 banks that participate in the Primary Dealers System, with the banks then selling part of the instruments in the secondary market to individual and institutional investors, both domestic and international.
Earlier, Ahmed Kouchouk, Deputy Minister of Finance, stated that the government is finalizing a medium-term public debt reduction strategy, which will be unveiled in Q1 2025. He emphasized that the strategy will be more balanced and comprehensive. Kouchouk also noted that the government aims to reduce the debt-to-GDP ratio to 85% during the current fiscal year, following a decline from 96% in June 2023 to 89.6% in June 2024.
As part of its three-year program (2024–2027), the government also announced plans to revise its financing and debt management strategy, with a focus on reducing overall debt levels and improving the quality of financial management. This revised strategy aims to lower financing needs and enhance Egypt's fiscal sustainability.
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