Egyptian Banks Offered US$ 51 Bln Finance For Imports

Tarek Amer, chairman of Federation of Egyptian Banks (FEB) and chairman of National Bank of Egypt (NBE), said customers’ deposits with NBE reached EGP 280 billion from which 4 million families are benefitting. Amer stressed that NBE is financing private sector, without risking customers’ deposits.

Consumption rate rose in Egypt after last year’s revolution, as imports volume reached US$ 51 billion. Banks did not only finance private sector but also the government. For the first time, the import costs were financed from the banks’ foreign reserves, not from the Central Bank’s reserves, said Tarek Amer in an interview with Al Hayat Channel yesterday.

According to Central Bank of Egypt‘s 2003 report, volume of banks’ non-performing loans reached EGP 130 billion, and NBE’s losses reached EGP 19 billion in 2010. The government assigned seniors at private banks to manage state-owned banks after these banks had “deteriorated”, Amer noted.

Regarding NBE’s international bonds, Amer said 158 institutions bought these bonds such as Bemco Company which is from the largest international assets management companies as its assets portfolio is valued at about one trillion dollars, reflecting investors’ confidence in NBE.

Replying on Sukuk (Islamic bonds) draft that is being discussed in the People’s Assembly (Lower House of Parliament), Amer said enacting a sukuk legislative bill will not solve Egypt’s economic crisis, as its market reached about US$ 95 billion in five years, while market of bonds reached US$ 29 trillion.

The general prosecutor was informed about the banking accounts of the former regime’s figures, Amer said, adding that their money outside Egypt is estimated to EGP 10-15 billion.

Many expected transitional period to last about 3 month, but it has lasted for 14 months. However, Egypt did not witness a lack in products or foreign or Egyptian currencies.

Despite the security lax that affected transport, Egypt’s exports increased.

Egypt does not have the concept of risk expectation nor a strategy for combating corruption.

Amer said International Monetary Fund’s loan to Egypt necessities consensus of various political powers. The loan will be used to pay off loans’ interests, finance subsidies and pay government employees.