Egypt News

The Ministry of Finance will offer 1 billion pounds of 91- day bills and 3.5 billion pounds of 273-day notes at an auction today, according to data posted on its website.

The ministry will also auction 2 billion pounds of 182-day securities and 3.5 billion pounds of 364-day bills on Feb. 21, it said.

The protests that led to the Feb. 11 ouster of Mubarak shuttered businesses, scared off tourists and raised the government’s borrowing costs to the highest level in two years.

Egypt’s Finance Minister Samir Radwan said on Feb. 14 the budget deficit will widen to about 8.4 percent of gross domestic product in the current fiscal year ending June from 8.1 percent as spending increases and economic growth slows after Mubarak’s fall.

The turmoil has forced banks to close and sent the currency skidding to a six-year low. Banks will open today, state-run television reported on Feb. 18, while the stock market, shut since Jan. 30 at the height of the anti-Mubarak demonstrations, remains closed. Economic growth may slow to 4 percent from 5.1 percent in the previous year, Radwan said on Feb. 12.

Preventing Strikes

The Ministry of Finance sold a combined 6.5 billion pounds of 91-day and nine-month bills on Feb. 13. The average yield on the nine-month securities rose to 11.68 percent, the highest in two years, from 11.66 percent at the previous sale, according to central bank data on Bloomberg.

Egypt’s Supreme Council of the Armed Forces dissolved parliament and suspended the constitution, saying it will rule for six months or until elections are held.

The military council said that it won’t allow strikes to continue because of their impact on the economy, state-run television reported on Feb. 18.

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