Daily News Egypt

Private sector acquire 59.5% of total credit facilities granted by banks to customers through July: CBE - Daily News Egypt

Advertising Area




Advertising Area




Private sector acquire 59.5% of total credit facilities granted by banks to customers through July: CBE

Deposits increase by EGP 15.4bn, including EGP 12.8bn in local currency


The private sector accounted for 59.5% of the total credit facilities granted by banks to their customers during July 2016, according to the Central Bank of Egypt (CBE).

In its monthly report, the CBE said that the total balances of credit facilities granted by banks amounted to EGP 944.3bn in July, increasing by EGP 1.6bn from June.

The industrial sector accounted for 32.1% of the total credit facilities granted by banks to their clients in July; followed by the services sector, which includes tourism, obtaining 27.6% of these facilities. Trade came third with 10.6%.

In what has become a continuing trend, the agriculture sector came last on the list registering only 1.3% of total facilities during July observed by the CBE.

A number of other sectors were not listed in detail in the CBE’s report. Collectively, these sectors—including the household sector—received 28.4% of total facilities.

The head of an Arab bank operating in Egypt said that the country needs more loans granted to different economic services, particularly the industry sector considering its importance to the national economy.

He explained that the industrial sector is the most important sector for generating economic growth by reducing unemployment and increasing employment rates. In addition, it also serves the economy by increasing the foreign exchange reserves of export earnings.

Moreover, he criticised the size of credit facilities granted by banks to the agriculture sector, stressing that agriculture is a very important sector for Egypt’s economy, highlighting its importance in securing basic commodities for Egyptians, next to its contribution to the export sector.

The CBE also stated that deposits at banks increased by EGP 15.457bn in July, registering EGP 2.138tn in July 2016, compared to EGP 2.123tn in July 2015.

The total size of non-government deposits in banks amounted to EGP 1.77tn in July 2016, compared to EGP 1.76tn in July 2015. Meanwhile, governmental deposits reached EGP 358.5bn.

Deposits in local currency, according to the CBE, increased by EGP 12.8bn in July 2016, registering EGP 1.71tn, while deposits in foreign currencies, in the same month, increased by EGP 2.6bn, recording EGP 427.4bn.

According to the head of the treasury sector at a specialised bank operating in Egypt, the hike in deposit volumes at banks is attributed to increased savings by the household sector, which accounts for 75.7% of the total savings at banks.

He added that this sector is usually afraid to invest money outside of banks. Individuals also lack other alternatives to employ savings that generate stable return.

 

Advertising Area



https://cdn1.dailynewsegypt.com/2016/10/26/575129/
Breaking News

No current breaking news

Receive our daily newsletter
Subscribe