Bloomberg News

Egypt Offers $3.3 Billion in Repo Bids for Second Week

December 20, 2011

Dec. 20 (Bloomberg) -- The Egyptian central bank is offering 20 billion pounds ($3.3 billion) in repurchase agreements, or repos, for the second straight week, as domestic banks bear the brunt of financing the country’s budget deficit.

The contracts allow holders of government securities to sell them back to the central bank to access funds for a week at 9.75 percent, according to central bank data on Bloomberg. The regulator accepted 20 billion pounds on Dec. 13, a record amount since it introduced the facility this year.

The popular revolt that toppled former president Hosni Mubarak in February prompted foreign investors to cut their holdings of Egyptian treasury bills, according to central bank data. The government last week revised its target for the budget deficit in the fiscal year through June 2012 to 10 percent of gross domestic product, up from an earlier forecast of 8.6 percent.

--Editors: Alan Purkiss, Chris Peterson

To contact the reporter on this story: Alaa Shahine in Dubai at asalha@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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