Reuters MOHAMED ABD EL GHANY
The Central Bank of Egypt announced, on Monday, the offering of treasury bonds worth 12.5 billion pounds, on behalf of the Ministry of Finance, in order to fill the state’s general budget deficit.
Official data published on the official website of the Central Bank of Egypt confirmed that “the value of the first offering is 7 billion pounds for a period of 5 years, while the value of the second offering is 5.5 billion pounds for a period of 10 years.”
It is noteworthy that the revenues of the Central Bank of Egypt, from loans and balances with banks, in addition to the proceeds of treasury bills and bonds, rose to 145.387 billion pounds during the fiscal year ending on June 30, 2019, compared to 118.875 billion pounds on June 30, 2018, an increase of 26.512 billion pounds.
The bank’s financial statements showed an increase in its revenues from loans and bank balances to 18.7 billion pounds at the end of June 2019, compared to 11.6 billion pounds on 30 June 2018, with an increase of 7.11 billion pounds, and an increase in the yield of treasury bills and bonds to 126.6 billion pounds compared to 107.2 billion pounds, An increase of 19.4 billion pounds.
This comes at a time when the Central Bank’s net losses decreased to 30.7 billion pounds, compared to about 31.8 billion pounds during the aforementioned period, with a decrease of 1.1 billion pounds, and the central bank made profits, before tax deduction, amounting to 3.8 billion pounds, In comparison to 941 million pounds, losses before taxes, in June 2018, and the Central Bank paid taxes amounting to 34.6 billion pounds.
The government resorts to financing the budget deficit by offering bonds and treasury bills as borrowing tools, and government banks are the largest buyers of them.
Source: RT
Source link