Banks Requested to Cover Budget Shortfall

The Central Bank of Egypt is asking banks today, Sun. July 24, to cover L.E. 7 billion for the government as the value of treasury bonds “short-term governmental debt instruments”.

This comes as part of Finance Ministry’s efforts to face the budget shortfall by floating treasury bonds to provide liquidity.

CBE is to organize the auction on bonds for the Finance Ministry.

A CBE source said the Ministry has cooperated with CBE to increase its liabilities of treasury bonds due to growing budget deficit.

The same source said the Ministry last month requested some L.E. 47 billion from banks while normal treasury bonds flotation used to stand at L.E. 30 billion a month.