Egyptian Banks Issue 30% Saving Certificates

The two largest state-run banks in Egypt issued new high-yield investment certificates of up to 30% with a maturity of 3 years, and the return decreases in the second and third years to 25% and 20%, respectively, with multiple payment cycles for the returns.

NBE

The National Bank of Egypt (NBE) decided to offer a three-year certificate with a decreasing interest, at an annual price of 30% for the first year, 25% for the second year, and 20% for the third year, with the return paid annually.

This came after the Monetary Policy Committee of the Central Bank of Egypt (CBE) decided to raise the overnight deposit and lending rates and the Central Bank’s main operation rate by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively. It was also decided to raise the credit and discount rates by 600 basis points to reach 27.75%.

NBE decided to amend the return rate on the three-year decreasing platinum certificate with the monthly return disbursement period to become an annual rate of 26% for the first year, 22% for the second year, and 18% for the third year for new issues from today.

It was also decided to amend the return rate on the three-year platinum certificate with a fixed return to become 21.5% annually for new issues from today, instead of 19% with the monthly return disbursement period.

Also, it was decided to continue the platinum certificates for a period of one year with an annual return of 27% to be paid at the end of the period and 23.5% to be paid monthly, and to introduce a new exchange periodicity with an annual return rate of 23% with a daily return period.

Banque Misr

TheBanque Misr also decided to re-issue the “Ibn Misr” savings certificate for three decreasing years, with different return disbursement periodicities, in order to meet the needs of customers. Accordingly, three issues were approved regarding the periodicity of interest disbursement, annually/quarterly/and monthly.

The bank explained that annual returns reach 30% for the first year, 25% for the second year, and 20% for the third year.

While returns with a quarterly payment cycle reach 27% for the first year, 23% for the second year, and 19% for the third year.

Returns with monthly exchange period also reach 26% for the first year, 22.5% for the second year, and 19% for the third year, for new issues starting today.

The bank explained that the return rate on the 3-year “Al-Qimma” certificate with a fixed return has been adjusted to become 21.5% annually for new issues, instead of 19% with the monthly return disbursement period. This is with the continuation of issuing the Talaat Harb certificate for one year with an annual return of 27% spent at the end of the period and 23.5% is spent on the monthly return.

The categories of certificates start from 1000 pounds and its multiples and are issued to natural individuals or minors, Egyptians or foreigners, and the period is calculated starting from the business day following the purchase.

Certificates can be purchased starting Wednesday, via the Internet, BM Online mobile banking, and Banque Misr ATMs.

USD/EGP

Today, the Egyptian pound began to float, and within hours it lost more than 48% of its value against the dollar. By the end of the day, banks were trading the dollar at more than EGP 50 to the greenback, up from about EGP 31. The USD/EGP on the parallel market recorded almost the same value at EGP 51.65.