Dailynewsegypt

Author: Hossam Mounir

  • Egypt’s Central Bank to decide on EGP’s interest in the last MPC meeting of 2022

    Egypt’s Central Bank to decide on EGP’s interest in the last MPC meeting of 2022

    The Central Bank of Egypt (CBE) will be deciding on the fate of the EGP’s interest rate on Thursday, when its Monetary Policy Committee (MPC) will meet for the last time this year to discuss the position of the basic interest rates, which are the most prominent indicator of the direction of the pound’s interest in the short term.

    The committee decided in an extraordinary meeting on 27 October to raise the basic interest rates of the CBE by 2% to reach 13.25% for deposits, 14.25% for lending, and 13.75% for the credit and discount rate and the price of the main operation within the bank. Given the CBE’s decision, along with the cumulative additions it made beforehand, the EGP’s interest rate has increase by a total of 5% in 2022.

    The MPC stressed that the aim of raising interest rates is to contain inflationary pressures resulting from the demand side, the high rate of domestic liquidity growth, inflationary expectations, and the secondary effects of supply shocks.

    Earlier this month, the CBE revealed that the annual core inflation rate had increased to 21.5% by the end of November, compared to 19% in October.

    It also explained that the monthly rate of core inflation recorded 2.7% in November, compared to 3% in October and 0.5% in November 2021.

    The Central Agency for Public Mobilisation and Statistics (CAPMAS) also revealed that the inflation rate in Egyptian cities rose to 18.7% by the end of November, compared to 16.2% in October.

    Also, according to the agency, the annual inflation rate for the entire republic recorded 19.2% at the end of November, compared to 16.3% in October and 6.2% in November 2021.

    Furthermore, HC, Zila Capital, and Naem Financial expect the interest rate to increase by 200 basis points at Thursday’s meeting, while Hermes and CI Capital expect it to rise by 100 points, and Prime Financial and Beltone expect it to remain unchanged.

    Additionally, a Reuters poll that included 12 analysts suggested that the CBE would raise interest rates by 200 basis points.

    “We expect the MPC to raise the interest rate by 200 basis points in order to confront inflation and to attract inflows that benefit from price differences,” said Heba Mounir — Analyst of the Banking Sector and Macroeconomics at HC Securities and Investment.

    She indicated that inflation accelerated in November, as it rose by 2.3% on a monthly basis and 18.7% on an annual basis, exceeding the company’s estimates of 16.5%, pointing out that this acceleration, along with the current shortage in foreign capital inflows, led to the company’s expectation of recording an annual inflation rate of 19.1% in December.

    “The average return on the 12-month treasury bills after tax reached 15.99%, accounting for a tax rate of 15% for US and European investors in the offering held on 8 December with a bid-to-cover ratio of 3.20 times, indicating the need to raise returns.”

    She also explained that Egyptian treasury bills for 12 months currently offer a real return of negative 0.1%, and calculating the expected increase of 200 basis points in the interest rate at the CBE will attract flows benefiting from the price differences.

  • CBE pushes for sustainable financing in banking sector

    CBE pushes for sustainable financing in banking sector

    The Central Bank of Egypt (CBE) has revealed the efforts it has taken to boost sustainable financing in the banking sector.

    In an infographic the CBE issued Monday, the bank stated that these efforts included the issuance of guiding principles for sustainable financing in July 20211 by building the necessary capabilities and knowledge, promoting sustainable financing, involving stakeholders, managing climate change risks, applying sustainability principles to the bank’s internal activities and work, and preparing reports.

    The Central Bank has also issued binding supervisory instructions to enhance sustainability and sustainable financing by establishing an independent department for sustainability and financing in each bank, obliging banks to include executive policies and procedures for sustainable financing within the credit and investment policies of the bank, and preparing periodic reports that explain the effective and measurable steps taken by the banking sector in this regard and sustainable financing, and the use of an environmental consultant to evaluate the projects of large companies to be funded from an environmental perspective.

    The Central Bank announced that all banks have completed measuring the carbon footprint of their main headquarters, in order to activate the fifth principle of the guiding principles for sustainable financing issued by the Central Bank, which stipulates the application of sustainability principles to the activities and work of internal banks.

    The carbon footprint is an indicator for measuring the emission rates of harmful gases such as carbon dioxide, methane and other gases that cause global warming and climate change.

    Its objective is to determine the rates of harmful gas emissions, to take the necessary measures, and to develop implementation plans to reduce these rates and limit their negative effects on the environment and climate.

  • CBE throws light on Egypt’s high inflation in November 2022

    CBE throws light on Egypt’s high inflation in November 2022

    Egypt’s annual headline urban inflation increased to 18.7% in November 2022 from 16.2% in October 2022.

    November’s inflation was mainly caused by the 27 October local currency devaluation, and the continued repercussions of the Russian-Ukrainian conflict.

    Annual food inflation recorded 29.9% in November 2022, which is the highest since November 2017. Non-food inflation also increased for the 12th consecutive month to 13.8%.

    Monthly headline urban inflation recorded 2.3% in November 2022, up from 0.1% in November 2021. It was the second highest monthly inflation since 2008, after November 2016’s monthly inflation of 4.8%.

    This was mainly driven by food items’ inflation, of which 1.2% is attributed to core food items. Non-food items also contributed to reflect broad-based increases encompassing services, mainly higher expenditure on restaurants and cafes as well as retail items, mainly household appliances, cleaning products, medical products, spare parts, and personal care products, in addition to higher prices of jewelry.

    Driven by higher broad-based annual contributions, annual core inflation continued its upward trend that started more than a year ago, to record 21.5% in November 2022, from 19% in October 2022, the highest rate since November 2017.

    Monthly core inflation recorded 2.7% in November 2022, compared to 0.5% in November 2021.

    Annual inflation in the whole country increased to 19.2% in November 2022 from 16.3% in October 2022. In addition, rural annual inflation increased to 19.6% in November 2022 from 16.3% in October 2022.

    Prices of fresh vegetables increased by 7.1%, while prices of fresh fruits declined by 1.4%. Together, they contributed by 0.21% to monthly headline inflation.

    Prices of poultry increased by 11.2%, to contribute by 0.46% to monthly headline inflation. Prices of dairy products increased by 4.7%, to contribute by 0.17% to monthly headline inflation. Prices of red meat increased by 2.4%, to contribute by 0.10% to monthly headline inflation. Prices of market rice increased by 5.9%, to contribute by 0.07% to monthly headline inflation. Prices of fish and seafood increased by 3.2%, to contribute by 0.07% to monthly headline inflation. Prices of eggs increased by 3.5% to contribute by 0.05% to monthly headline inflation. Prices of other core food items including other edible oils, market sugar, bread, pasta, among others, increased to contribute by 0.31% to monthly headline inflation.

    Moreover, prices of services increased by 1.0%, to contribute by 0.35% to monthly headline inflation. This mainly reflected higher expenditure on restaurants and cafes. Prices of retail items increased by 2.4%, to contribute by 0.33% to monthly headline inflation. This was mainly due to an increase in the prices of medical products and appliances, clothing and footwear, household appliances and cleaning products, jewelry, spare parts, and personal care products. Prices of regulated items increased by 0.7%, to contribute by 0.16% to monthly headline inflation. This was mainly due to the higher prices of medical products, equipment and appliances.

    Monthly core inflation was affected by price changes of the aforementioned core CPI items. Core food items contributed by 1.72% to monthly core inflation. Services contributed by 0.48% to monthly core inflation. In addition, retail items contributed by 0.45% to monthly core inflation.

  • CBE reveals top indicators of financial safety for banks by end of 3Q 2022

    CBE reveals top indicators of financial safety for banks by end of 3Q 2022

    The Central Bank of Egypt (CBE) recently revealed the most prominent financial safety indicators for banks by the end of the third quarter (3Q) of this year.

    According to the CBE, the total financial position of banks operating in the local market, other than the CBE, increased by about EGP 786bn to record EGP 10.823 trillion at the end of September, compared to EGP 10.037 trillion at the end of June.

    In its quarterly report on indicators of financial safety of banks, the CBE stated that on the assets side, cash balances in banks at the end of September 2022 amounted to about EGP 75.523bn, and the balances of some banks inside the country amounted to EGP 1.757 trillion, while balances in banks abroad amounted to EGP 216.432bn.

    It added that the balances of lending and discounting to clients recorded about EGP 3.695 trillion, while the securities portfolio and banks’ investments in treasury bills recorded EGP 4.058 trillion.

    Regarding liabilities, the CBE stated that the bank’s capital amounted to EGP 288.804bn, and reserves recorded EGP 417.970bn, while the balance of provisions amounted to EGP 226.338bn.

    Furthermore, banks’ obligations to each other in Egypt amounted to EGP 334.444bn, while their obligations to banks abroad amounted to EGP 255.861bn, and total deposits amounted to EGP 7.819 trillion. Meanwhile, the balances of bonds and long-term loans amounted to EGP 368.5bn.

    The CBE said that the rate of non-performing loans recorded 3.2% of the total loan portfolio of banks operating in the Egyptian market by the end of September, with little change from June.

    It also explained that the rate of non-performing loans amounted to 2.3% of the total loans at the 10 largest banks operating in the Egyptian market and reached 1.9% at the five largest banks.

    Moreover, the CBE indicated that banks made provisions of 91.8% of their total non-performing loans, compared to 92.1%, and the percentage of these provisions reached 100% for the 10 largest banks operating in the Egyptian market.

    “The volume of provisions made by banks to face doubtful debts amounted to about EGP 226.338bn by the end of September 2022, and the share of the ten largest banks in those provisions was EGP 165.908bn, while the volume of provisions in the five largest banks amounted to EGP 143.203bn,” according to the CBE.

    The report added that the banks have formed reserves worth EGP 417.970bn, of which the share of the top ten reached EGP 324.832bn, while the volume of reserves of the five largest banks amounted to EGP 289.924bn.

    The CBE also said that the private sector acquired 58.4% of the total loans granted by banks to their customers, compared to 58.1%.

    It explained that the private sector acquired 50.2% of the total loans at the 10 largest operating banks in Egypt, while it acquired 46.1% of the loans at the five largest banks.

    Additionally, the CBE pointed out that the ratio of loans to deposits in banks operating in the Egyptian market declined to 47.4%, compared to 48.6% in June 2022, and this ratio reached 484% with the 10 largest banks and 48.9% in the five largest banks.

    Furthermore, the ratio of loans to deposits in local currency decreased to 44.1%, compared to 45.51%, and this ratio reached 44.3% for the 10 largest banks and 43.9% for the five largest banks.

    The ratio of loans to deposits in foreign currencies in banks also declined to 66.6%, compared to 66.8%. This ratio recorded 73.5% in the top 10 banks and 82.9% in the top five banks.

    The CBE also said that total deposits in banks jumped to about EGP 7.819 trillion, compared to EGP 7.353 trillion, an increase of about EGP 466bn, pointing out that the top 10 banks account for EGP 6.043 trillion of the deposits and about EGP 5.372tn at the five largest banks.

    It added that the percentage of deposits to assets in banks amounted to 72.3%, compared to 73.4%, and this percentage reached 71.7% with the 10 largest banks and 71.5% with the five largest banks.

    Furthermore, the CBE indicated that the average actual liquidity ratio in local currency at banks increased to 46.9%, compared to 43.5%, and this ratio recorded 47% for the top 10 banks and 46.9% for the top five banks.

    On the other hand, the average actual liquidity ratio in foreign currencies at banks declined to 77.3%, compared to 78%. This ratio reached 77.5% for the top 10 banks and 77.3% for the top five banks.

    Additionally, the CBE said that the volume of investments of banks operating in the local market in securities and treasury bills amounted to EGP 4.058 trillion, compared to EGP 3.739 trillion — an increase of about EGP 319bn.

    It pointed out that the volume of investments of the 10 largest banks in these tools amounted to EGP 3.218 trillion and about EGP 2.914 trillion for the five largest banks.

    According to the CBE, the percentage of banks’ securities portfolio, excluding treasury bills, declined to 25% of total assets, compared to 25.2%, and this percentage reached 27.4% for the largest 10 banks and 28.5% for the largest five.

    Also, the ratio of the capital base to risk-weighted assets in banks declined to 20.5%, compared to 20.9%, and this ratio reached 19.6% for the 10 largest banks and 19.6% for the five largest banks.

    The ratio of the first tranche of capital in banks to risk-weighted assets declined to 16.7%, compared to 17.1%. This ratio reached 15.5% for the top 10 banks and 15.3% for the top five banks.

    According to the CBE, the ratio of banks’ continuous basic capital to risk-weighted assets reached 11.6%, compared to 12.2%. This ratio reached 10.5% for the top 10 banks and 9.9% for the top five banks.

    Moreover, the leverage ratio in banks decreased to 6.7%, compared to 6.9%. This ratio reached 6% in the top 10 banks and 5.8% in the top five banks.

    According to the CBE, the minimum set for this percentage is 3%.

    In another context, the CBE revealed that the net open positions for foreign currencies reached -2.3% of the total capital base of banks operating in the Egyptian market, compared to -2.3%.

    It explained that this percentage amounted to -3.2% in the 10 largest banks and -3.6% in the five largest banks.

    It also stressed that the value of the total surplus or deficit in foreign exchange positions should not exceed 20% of the capital base.

    As a result of the activity and strong performance of banks operating in the Egyptian market, they recorded net profits amounting to EGP 93.396bn, compared to EGP 56.8bn.

    The CBE report revealed that the net return in banks amounted to EGP 225.807bn, compared to EGP 141.032bn.

    According to the report, the net revenues of the activity amounted to about EGP 272.230bn, compared to EGP 171.462bn, while the total expenses recorded about EGP 178.8bn, compared to EGP 114.595bn.

    The top ten banks acquired 78.29% of bank profits, recording EGP 73.125bn at the end of September, while the top five banks acquired 65.1% of the sector’s profits, recording EGP 60.894bn.

    The list of these banks includes the National Bank of Egypt (NBE), Banque Misr, CIB, Banque du Caire, QNB Al-Ahly, Credit Agricole – Egypt, Faisal Islamic Bank of Egypt, and HDB.

    The report revealed that the net revenues of the big five banks recorded EGP 144.194bn, net activity revenues of EGP 174.9bn, and total expenses of EGP 114.042bn by the end of September.

    This comes at a time when the net returns of the top ten banks amounted to EGP 170.721bn, net revenues of activity amounted to EGP 206.980bn, while the total expenses amounted to EGP 133.8bn.

    The CBE said that the return on average assets in banks recorded 1.2% at the end of September 2022, without significant change since the beginning of the year, and the return on average equity recorded 16.19%, while the net margin of return reached 4.2%

    It pointed out that the return on average assets in the 10 largest banks amounted to 1.4%, and the return on average equity recorded 20.2%, while the net margin of return reached 4.3%.

    Finally, the return on average assets of the five largest banks was 1.3%, and the return on average equity was 21%, while the net margin of return reached 4.3%.

  • MSMEDA, EU, AFD cooperate to develop informal settlements

    MSMEDA, EU, AFD cooperate to develop informal settlements

    Nevine Gamea, Executive Director of the Micro, Small and Medium Enterprises Development Agency (MSMEDA), said that the agency works within the framework of an integrated system to improve the living standards of thousands of families in informal settlements.

    Gamea praised the continuous cooperation between MSMEDA and the Ministry of International Cooperation in concluding agreements with various donors and international agencies to implement development projects that serve the Egyptian society.

    This came in a speech delivered by Gamea at the celebration of the end of the first phase and the launch of the second phase of the urban upgrading program and the promotion of job opportunities in slums in the governorates of Cairo and Giza. The event took place in the presence of Khaled Abdel-Al, Governor of Cairo, Ahmed Rashid, Governor of Giza, Christian Berger, Ambassador of the European Union, and Matthew Wasser, Regional Director of the French Agency for Development in North Africa and Rafael Martin de Lagarde, representative of the French Embassy in Cairo.

    In her speech, Gamea added that the urban upgrading program was implemented in four regions in the governorates of Cairo and Giza, and 570,000 families benefited from the implemented projects in Ezbet Khairallah and Al-Zawiya Al-Hamra in Cairo Governorate, in addition to Ard Al-Liwa and Mit Okba in Giza Governorate.

    She pointed out that the number of urban and social development projects amounted to 35 projects in the four targeted areas, including 15 projects in Cairo Governorate, 20 projects in Giza Governorate, with a total cost of about 268 million Egyptian pounds, which provided more than 320,000 daily employment for workers who do not have fixed jobs and are residents of these areas. She pointed out that these areas witnessed remarkable development seen in the provision of basic services, including the renewal of water and sewage networks, paving roads, lighting works, installing water tanks, developing tunnels and bridges, as well as schools and health institutions, in addition to training women in some handicrafts that enable them to improve their economic levels.

    Gamea affirmed the agency’s keenness on completing cooperation with development partners during the second phase of the urban upgrading program, given that the European Union and the French Development Agency are among the most important and largest funders and partners of the agency over the years.

    Walid Darwish, head of the central sector for community and human development in the agency, explained that projects have been implemented at a cost of EGP 117.9m in Cairo governorate, which provided approximately 142,000 daily employment for irregular workers, while in Giza governorate, projects have been implemented at a cost of EGP 121.3m, and succeeded in providing 184,000 operating days.

    Darwish referred to the mandate of the European Union to the French Development Agency to implement a second phase of the program and enhance job opportunities under the management of the agency, to be implemented at the beginning of 2023.

    For his part, Khaled Abdel-Aal, Governor of Cairo, confirmed that the urban upgrading program contributed to improving services for about 1.5 million citizens in the governorate in Old Cairo and Al-Zawiya Al-Hamra, with a grant from the European Union and the French Agency.

    Ahmed Rashid, the governor of Giza, said that improving living conditions in slums included providing proper services to citizens to prepare the labor market, and also included providing economic and social services to women to prepare them as an essential element in comprehensive development in societies.

    Christian Berger, Ambassador of the European Union to Egypt, Raphael Martin de Lagarde, representative of the French Embassy in Cairo, and Maceo Fassier, Regional Director of the French Development Agency for North Africa, also praised the efforts made during the first phase of the urban upgrading project, which was carried out in cooperation with MSMEDA and the governorates of Cairo and Giza. He stressed the aspiration to complete cooperation with the agency and partner agencies to provide a better life for citizens in these areas.

  • EGP 14.596bn increase in the value of CBE’s gold balances by end of November 2022

    EGP 14.596bn increase in the value of CBE’s gold balances by end of November 2022

    The Central Bank of Egypt (CBE) revealed that the value of its gold balances increased to EGP 173.658bn at the end of November 2022, compared to EGP 159.062bn at the end of October — an increase of EGP 14.596bn.

    According to the financial statements of the CBE, the bank’s total assets rose to EGP 3.699 trillion at the end of November, compared to EGP 3.480 trillion — an increase of EGP 219bn.

    Furthermore, the capital of the CBE amounted to EGP 21.600bn, unchanged from October, while the balance of reserves amounted to EGP 328.603bn, compared to EGP 328.336bn, and the total equity rights amounted EGP to 3.801bn.

    The lists also revealed that the value of his contributions to the capital of subsidiaries and sister companies increased to EGP 28.028bn, compared to EGP 27.959bn — an increase of about EGP 69m.

    Additionally, the bank indicated that its contributions to the capital of international financial institutions increased to EGP 16.190bn, compared to EGP 15.895bn — an increase of EGP 295m.

    Also, the central bank’s balances with banks amounted to about EGP 249.026bn, compared to EGP 239.727bn, while its balances with the International Monetary Fund amounted to the equivalent of about EGP 7.105bn, compared to the equivalent of about EGP 11.664bn.

  • Egypt-US trade exchange increases to $7.3bn in 9M 2022: CAPMAS

    Egypt-US trade exchange increases to $7.3bn in 9M 2022: CAPMAS

    The Central Agency for Public Mobilization and Statistics (CAPMAS) revealed Wednesday that the trade exchange between Egypt and the United States increased to $7.3bn in the first nine months of 2022, compared to $6.5bn during the same period in 2021, a growth of 13.4%.

    The agency stated that the value of Egyptian exports to the United States decreased to $1.8bn during the first nine months of 2022, compared to $1.9bn during the same period in 2021, down 1.7%, while the Egyptian imports from the US increased to $5.5bn, compared to $4.6bn, a growth of 19.5%.

    According to the agency, the most important commodity groups that Egypt exported to the United States during 9M 2022 were garments worth of $1.1bn, plastics and their manufactures worth of $136.5m, carpets and floor coverings worth of $117.4m, vegetables worth of $83m, and glass worth of $68.7m.

    As for the most important commodity groups that Egypt imported from the United States in 9M 2022, they were seeds and medicinal plants worth of $1.9bn; fuel, mineral oils, and their distillation products worth of $1bn; pharmaceutical products of $326.2m; boilers, machinery, and automatic devices of $293.1m; and iron and steel worth of $267m.

    CAPMAS said that the US investments in Egypt increased to $9.2bn during fiscal year 2020/21, compared to $7.7bn in FY2019/20, an increase of 19.8%.

    It added that the Egyptian remittances from the United States recorded $1.4bn in FY2020/21, compared to $975.2m in FY2019/20, an increase of 40.9%, while the remittances of Americans working in Egypt amounted to $42.8m, compared to $49.9m, a decrease of 14.1%.

    According to the agency, the number of Egyptians residing in America reached 1.5 million in 2021.

  • Net profits of banks operating in Egypt reach EGP 93.4bn in September 2022

    Net profits of banks operating in Egypt reach EGP 93.4bn in September 2022

    The net profits of banks operating in the Egyptian market recorded about EGP 93.396bn in September 2022, compared to about EGP 56.8bn in June 2022.

    CBE’s quarterly report, issued on Wednesday, revealed that net returns in banks amounted to EGP 225.807bn in September 2022, compared to EGP 141.032bn in June.

    According to the report, the net revenues of the activity amounted to about EGP 272.230bn, compared to EGP 171.462bn, while the total expenses recorded about EGP 178.8bn, compared to EGP 114.595bn.

    The top ten banks acquired 78.29% of bank profits, recording EGP 73.125bn in September, while the top five banks acquired 65.1% of the sector’s profits, recording EGP 60.894bn in September.

    The list of those banks is topped by the National Bank of Egypt (NBE), CIB, Banque du Caire, QNB Alahli, Credit Agricole – Egypt, Faisal Islamic Bank of Egypt, and HDB.

    The report revealed that the net revenues of the big five banks recorded EGP 144.194bn, net activity revenues EGP 174.9bn, and total expenses EGP 114.042bn by the end of September.

    This comes at a time when the net returns of the top ten banks amounted to about EGP 170.721bn, and the net revenues of activity amounted to about EGP 206.980bn, while the total expenses amounted to EGP 133.8bn by the end of September.

    CBE said that the return on average assets in banks recorded 1.2% in September 2022, without significant change since the beginning of the year, and the return on average equity recorded 16.19%, while the net margin of return reached 4.2%.

    He pointed out that the return on average assets in the 10 largest banks amounted to 1.4%, and the return on average equity recorded 20.2%, while the net margin of return reached 4.3%.

    According to CBE, the return on average assets of the five largest banks was 1.3%, and the return on average equity was 21%, while the net margin of return reached 4.3%.

  • Al Tadamun Microfinance obtains EGP 100m from AAIB to support micro-enterprises

    Al Tadamun Microfinance obtains EGP 100m from AAIB to support micro-enterprises

    Al Tadamun Microfinance Foundation, which operates in the field of financing micro-projects by women, announced signing a financing agreement with the Arab African International Bank (AAIB) at a value of EGP 100m, with the aim of supporting micro-enterprises and helping them develop and grow.

    The two parties stressed that the signing of this agreement comes within the framework of keenness on keeping pace with the plans and strategies of the Central Bank of Egypt (CBE) and the Financial Regulatory Authority (FRA), to achieve financial inclusion and support the economic empowerment of citizens, in line with the goals of sustainable development and the vision of “Egypt 2030”.

    Mona Zulfiqar, chairperson of the Board of Trustees of Al Tadamun Microfinance Foundation, said that signing a cooperation agreement with AAIB contributes to providing financing needs to the largest possible number of women who own micro-enterprises with fairness, quality and appropriate cost, to help them develop and grow their projects. The Foundation tries to increase the financing portfolio directed to the activity of micro-enterprises, which represents a basic pillar of economic growth in Egypt.

    She indicated that the balances of financing microenterprises witnessed a tangible jump, reaching about EGP 64.6bn, serving 4.5 million customers by the end of June 2022.

    Tamer Khalifa, Assistant Managing Director and Group Chief Executive Officer of AAIB, said, “This agreement comes in line with the bank’s strategy 2021-2025 to diversify the bank’s portfolio, in addition to financing small and medium enterprises (SMEs) and microfinance, based on the experience of the bank. It has also been long committed to providing financing solutions to the corporate sector over the years, as these enterprises are considered a major factor in advancing economic development.

    Reham Farouk, CEO of Al Tadamun Microfinance Foundation, said that the signing of the cooperation agreement with AAIB comes within the framework of the constant concern to diversify financing sources. He pointed out that the institution has a strong credit history, as it is currently cooperating with seven government and private banks operating in the Egyptian banking sector.

    She said that the microfinance activity contributes to creating many job opportunities, and also promotes sustainable economic growth. She noted the institution’s ability to continue outstanding performance, and achieve strong growth rates in financing balances and customers’ base during the coming period, which supports the state’s tendencies towards strengthening the role of the sector, which contributes to increasing domestic production and supporting economic activity.

    She added that the Foundation provides a variety of financing products that suit various segments of society for women, which include retail financing, group financing, household financing, and golden and complementary financing.

    For his part, Mohamed Hussein, Head of the SMEs Sector at AAIB, stressed the importance of this agreement because of its effective role in financing micro-enterprises, as these projects contribute to providing permanent and temporary job opportunities and increasing production and income.

    He also emphasized the bank’s interest in supporting the SMEs sector, as part of its strategy, and in line with the directives of CBE and the state’s efforts to advance this vital sector, to increase development rates and reduce unemployment rates.

  • Banks pump EGP 51bn to 454,000 customers as part of real estate financing initiative for low-income people

    Banks pump EGP 51bn to 454,000 customers as part of real estate financing initiative for low-income people

    The data of the Social Housing Fund and Real Estate Finance Support revealed that the banks participating in the real estate financing initiative for low-income individuals pumped funds worth EGP 50.915bn to about 453,900 customers until the end of last November, thus acquiring 95.6% of the total funds that were pumped within that initiative.

    According to the fund, the National Bank of Egypt (NBE) topped the list of 22 banks participating in the initiative, with financing amounting to EGP 14.5bn benefiting 128,100 customers with a market share of 27.3%.

    Banque Misr came in second place with total financing of EGP 12bn for 104,300 customers with a share of 22.7%, while the Housing and Development Bank came in third place with financing amounting to EGP 6.512bn directed to 69,301 customers with a share of 12.2%.

    In fourth place, Banque du Caire pumped financing worth EGP 3.245bn directed to about 34,600 customers with a share of 6.1%, while the Commercial International Bank (CIB) came in fifth place with financing amounting to EGP 2.998bn benefiting 23,272 customers with a share of 5.6%.

    In the same context, the fund revealed that eight companies operating in the field of real estate finance have pumped funds worth EGP 2.334bn to about 19,119 customers within the initiative, thus acquiring 4.4% of the total funds that were pumped.

    According to the fund, Contact Real Estate Finance topped the companies participating in the initiative with a volume of financing amounting to EGP 838.570m for about 6,166 clients.

    Al-Taameer Real Estate Finance also pumped financing amounting to EGP 814.022m to about 6,745 customers, while Al-Ahly Real Estate Finance provided financing amounting to EGP 284.757m to about 2,540 customers.

    Moreover, Amlak Real Estate Finance pumped financing amounting to EGP 252.940m to about 2,328 clients, while Tamweel Real Estate Finance provided EGP 68.666m to 602 clients.

    Additionally, Egyptian Real Estate Finance pumped EGP 43.042m to about 429 clients, while Al-Ahly United provided EGP 19.973m to about 200 clients, and the Arab African International pumped EGP 12.211m.

    Prime Minister Mostafa Madbouly recently issued a decision to instruct the Ministry of Finance to manage and follow up on all interest subsidy initiatives issued by the Central Bank of Egypt (CBE) with the aim of enhancing the availability of liquidity for a number of different economic sectors.

    According to this decision, the Ministry of Housing, Utilities, and Urban Communities will manage the real estate financing initiative for middle-income people with a decreasing return of 8% and a maximum of EGP 15bn, in addition to the real estate financing initiative for low- and middle-income people with a decreasing interest of 3% at a value of EGP 100bn for about 109 clients.