Export Development Bank’s Investments Down To EGP 551.3 Mln

The Export Development Bank of Egypt (EDBE)’s investments in subsidiary and affiliated companies retreated to EGP 551.300 million at the end of June, down from EGP 551.364 at the end of March, said Maged Fahmy, chairman of EDBE.

The bank awaits the economic situation to improve so as to disassociate from some companies that do not achieve good return such as tourism companies, he added.

The bank targets increasing loan-to-deposit ratio to 69.2% in FY 2012/2013, up from 64.9% at the end of FY 2011/2012.

Changing the bank’s activity from being a specialized bank into being a commercial bank was a must as the government had been directed to support exporters through a special fund. In addition, the National Investment Bank and European Investment Bank declined from lending the bank to support exporters. Therefore, the bank had to take this decision in order not to make supporting exports came at the expense of shareholders’ equities. However, the bank still supports the Egyptian exports through Export Credit Guarantee Company.