Mohamed El-Etreby, Chairman of Banque Misr, the second largest state-owned bank in Egypt, revealed that the selling of its new Certificate of Deposit (CD) amounted to EGP 3.55 billion on the third day of its offering.
El-Etrebyi added that more 85% of the securities were acquired electronically, pointing out that the CDs, which grants a return of 15% annually, including a monthly pidend, holds the highest return in the entire banking system.
The CD's categories start from EGP 1000 and their multiples and can be issued to all citizens, including minors. Moreover, Loans can also be issued with the guarantee of the certificate, in addition to the possibility of offering credit cards.
According to the redemption rules and the terms and conditions, the certificate can also be redeemed after 6 months from the business day following the date of purchase.
On March 20, Banque Misr decided to issue online Certificates of Deposit, in light of concerns about the spread of the coronavirus. The National Bank of Egypt (NBE) also issued the certificate with the highest market return.
On his part, Yehia Abou El Fettouh, Deputy Chairman of the National Bank of Egypt (NBE), revealed that the bank decided to keep the interest rates on fixed certificates unchanged.
In an emergency meeting earlier this month, the Central Bank of Egypt monetary policy committee (MPC) decided to cut both the deposit , the one-night lending rates and the main transaction price by 300 basis points to 9.25 %, 10.25 %, and 9.75 %, respectively.
The committee emphasized that the measure of reducing interest rates was taken as an exceptional measure, which contributes to supporting economic activity in all sectors, taking into account future expectations of inflation and its consistency with the targeted inflation rate of 9 percent (± 3%) during Q4 FY 2020.
The certificates were issued with the aim of supporting customers, as well as promoting fiscal stimulus measures to encourage economic growth during the coming period.
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