Gov’t borrowing to rise 8.5% in third quarter, bias toward short-term instruments

Government borrowing will rise about 6.4% in the third quarter of the current state fiscal year to EGP 229 bn, according to Al-Borsa, which notes the Finance Ministry will be shifting toward short term instruments to finance the deficit — a logical move, says CI Capital analyst Hany Farahat, in view of current interest rates. Farahat is also quoted as saying he sees interest rates declining over the course of the year, closing 2017 at pre-float levels. The Borsa story is here and the Finance Ministry’s timetable for bond and t-bill issuances in 3Q2016-17 is here (pdf).