The Ministry of Finance issued a press release on Thursday, containing what it claims to be the actual figures of issued treasury bills and bonds for the period 1July to 12 September, after Egyptian press reported that government’s domestic debt reached EGP 136 billion.
Al-Masry Al-Youm, adaily independent newspaper, reported Wednesday that the Egyptian government borrowed up to EGP 136 billion since President Morsy took office.
MomtazEl-Saeed, Minister of Finance, refuted what Al-Masry Al-Youm published, stating that the actual figure is EGP 18.5 billion worth of treasury bills and bonds, issued by the Central Bank of Egypt (CBE).
The Minister explains that during this two-month period, the Egyptian government issued EGP 164.4 billion in treasury bills and bonds, versus depreciating, re-paying to beneficiaries,EGP 145.9 billion worth of government securities issued during previous periods.
El-Saeed added that the amount of issued government securities totalling EGP 79.1 billion, against EGP 67 billion, which was re-paidbetween 1 August and 12 September. Net government’s domestic debt reached EGP 12.1 billion, under the mandate of Prime Minister HeshamQandil.
The Egyptian government resorted domestic borrowing, as a part of its two-sided strategy, according to the EgyptianMinister for Planning and International Co-operation, Ashraf Al-Arabi. He told the state-run Al-Ahram daily in August that the Egyptian government plans to bridge the budget deficit viaacquiring loans from international financial institutions to be directed to government investment in the public sector, as well as issuing government securities such as bonds and treasury bills.