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Egypt Launches $44 Billion Treasury Bill Sale

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Tomorrow, Sunday, the Central Bank of Egypt will offer £34bn of Treasury bills on behalf of the Treasury as part of a plan the ministry has devised to meet its liquidity needs.

The new offer includes the sale of LE 34 billion Treasury bills divided into two terms, the first for around LE 13 billion for a term of 91 days and the second offer for LE 21 billion for a term of 273 days.

This is not the first time that Cairo has offered debt instruments since the beginning of the year, as data from the Central Bank and the Egyptian Ministry of Finance show the implementation of several applications with different terms and target amounts.

A Treasury bill is a type of government bond, which is a debt instrument—in other words, proof of debt and a guarantee of a creditor’s rights—issued by the government to raise money to support government spending and pay obligations.

More specifically, bills of exchange are short-term debt that have a maturity of less than one year. Government bonds have periodic interest payments called coupon payments. sold at a discount compared to their original cost.

Government bonds issued by national governments are often considered low-risk investments because they are backed by the issuing government. In Egypt, the central bank sells treasury bills on behalf of the Ministry of Finance for sale between banks and financial institutions, which are major players in the debt market.

Source: RT

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