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External debt drops $2bn over 3 months - Daily News Egypt

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External debt drops $2bn over 3 months

Rate of increase in bank loans outstrips deposits for first time ever

Egypt’s external debt dropped by $2bn between June and September 2015, going from $48.1bn to $46.1bn over the three-month period, according to a statement by the Central Bank of Egypt (CBE) on Monday.

The statement revealed that the ratio of decline in the external debt was 12.6% by the end of September this year, compared to 13.3% in September 2014.

For the first time in the history of the Egyptian banking sector, bank loans witnessed an increase rate higher than deposits in September.

According to the CBE, the loan portfolios of banks increased by around EGP 34.677bn in September to a total of EGP 767.295bn, compared to EGP 732.618bn in August.

Deposits increased by EGP 34.282bn to a total of EGP 1,843.368bn in September, compared to EGP 1,809.086bn in August.

This huge increase in loan volume in September was supported by the increase in loans acquired by the government over the same month. Government loans increased by EGP 30.618bn to EGP 100.358bn, compared to EGP 69.74bn in August.

Meanwhile, loans targeted to non -governmental economic sectors increased by EGP 4bn to reach EGP 666.93bn in September, compared to EGP 662.878bn in August.

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