The Egyptian government plans to borrow EGP98.8 billion from local banks in September, in the form of treasury bills and bonds.
The country’s finance ministry seeks, through the issuance of treasury bills and bonds, to meet the financing and spending needs of the state, Youm7 reports.
It is supposed to borrow EGP262bn in the current first quarter of the 2015/2016 fiscal year, which started in July this year.
The government has already issued EGP83.2bn and EGP80bn in treasury bills and bonds in July and August respectively, according to data from the finance ministry.
The government uses treasury bills and bonds to borrow from local banks through thrice-weekly issuances at an average of EGP10bn.
The borrowed money is used to pay the salaries of public servants and finance government-sponsored subsidies and other current expenditures.
Egypt’s public debt (internal and external) stands at EGP2.55 trillion comprising 90 per cent of the country’s gross domestic product (GDP). Roughly 83 per cent or EGP2.4trn of the total value of the country’s debt is internal.
External debt amounts to EGP182.8bn or 6.5 per cent of the GDP, the data shows.
The Egyptian government seeks to put the budget deficit at EGP251bn or 8.9 per cent of its GDP.
(EGP1 = AED0.47, at the time of publishing)