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The Egyptian government borrows $3 billion in only one week

February 4, 2014 at 12:05 pm

Egyptian Finance Ministry statements indicate that the government has borrowed about 21 billion Egyptian pounds (equivalent to $3 billion) in the past week alone through domestic tools such as treasury bills and bonds that are due to be paid back according to different deadlines.

According to statements published on the ministry’s website, the government issued on Thursday treasury bills worth 6.5 billion Egyptian pounds (almost ($1 billion), comprised of bills worth 2.5 billion pounds for 182 days and bills worth 4 billion Egyptian pounds for 364 days.

Last Sunday, the ministry introduced the first dollar-denominated treasury bills in 2014. The short term bills are worth 7 billion Egyptian pounds ($1 billion). The government also reportedly sold on Monday almost $1 billion worth of longer term government bonds.

According to the Finance Ministry’s domestic borrowing bulletin, the government plans to borrow 64 billion Egyptian pounds in January to finance the budget deficit.

The government has been relying on the local money market to finance its public debt; however, the ability of local banks to lend the government Egyptian pounds has been stretched to its limit.

Source: El Shaab