He confirmed that the return of the new certificates is “attractive”.
The President of the Federation of Egyptian Banks and Chairman of the Board of Directors of Banque Misr, Mohamed El-Etribi, confirmed in an interview with Al-Arabiya that the return of the new savings certificates for 3 years, with a fixed return of 19%, and a decreasing 22%, is “attractive.”
Al-Etribi explained that the return on the new certificates is attractive because the current high inflation rates are temporary, and with the stability of the situation globally and locally, the inflation figures will recede, and this is what we hope in light of the policies in place, and with which we will reach that, like what happened in 2016.
He added that the time period for providing new certificates is open, and no date has yet been set for its completion.
He pointed out that the new certificates will not affect the bank’s profitability in the first year, due to the high price of the corridor.
He continued, “The Egyptian banking sector is strong and solid, and has succeeded in overcoming many crises and problems during the past periods, and the ratio of deposits to loans does not exceed 45 percent.”
The National Bank of Egypt and Banque Misr offered two new savings certificates for a period of 3 years, with a fixed return of 19% and a decreasing rate of 22%.
The first certificate was offered for a period of 3 years, with a fixed return of 19% annually, to be paid monthly, and the second certificate for a period of 3 years, with a decreasing interest rate of 22% for the first year, 18% for the second year, and 16% for the third year, and the return is paid monthly.
Today, Sunday, the two banks said that issuing these two certificates reflects the positive vision of a decrease in interest rates during the coming period, with the expected gradual decline in inflation rates, with the stability of the markets in light of international and domestic changes and the Central Bank of Egypt’s policy to target inflation.
Last Thursday, the Central Bank of Egypt announced an increase in the basic interest rates by 200 basis points.
And the “Central” stated in a statement that the Monetary Policy Committee decided to raise the rates of return on deposit and lending for one night and the rate of the main operation of the Central Bank by 200 basis points, to 18.25%, 19.25% and 18.75%, respectively.