The volume of outstanding balances of treasury bonds owed by the government until late May 2017 reached EGP 683.078bn, according to the Ministry of Finance.
In a recent report, the ministry explained that there are two types of bonds in pounds. The first type consists of bonds with yield and coupons. The balance of these bonds in the Finance Ministry is EGP 665.669bn, with an average yield rate of 14.245%.
These bonds were launched during the period from 12 February 2008 to 23 May 2017. The interest rate on them ranges between 9.15% and 18.75%.
According to the ministry, the balances of the second type of bonds, which are zero coupons, are estimated at EGP 17.4bn. The average yield rate on them is 13.447%.
These bonds were launched during the period from 12 January and 4 October 2016. Average interest rate on them ranges between 10.885% and 16.514%.
The ministry noted that the repayment of the first of the balances of bonds with yield and coupon takes place during the period from 10 June 2017 and 9 May 2027. The zero coupon bonds are repaid during the period from 11 July 2017 and 3 April 2018.
Banks working in the Egyptian market are considered the largest investing sectors in treasury bonds and bills regularly issued by the government to cover the deficit of the state’s general budget.
These bonds are issued through 15 banks that take part in the system of primary dealers in the primary market. These banks resell part of them in the secondary market to investors, including individuals and local and foreign institutions.
There are other bonds owed by the government that are issued in international markets worth $14bn.
The terms of these bonds range between 1 to 30 years, and these are to be repaid during the period from 10 December 2017 to 31 January 2047, with an average yield of 6.514%.
The Ministry of Finance managed to issue bonds in international markets worth $10bn during the period from 10 November 2016 until 31 May 2017, including $3bn in 31 May 2017 and $3bn in January 2017, in addition to $4bn in 10 November 2016, besides four issuances of other bonds during the period from April 2010 until June 2015.