Wage Cap Applied to 8 Bankers at Egyptian Arab Land Bank

Only eight senior bankers at the Egyptian Arab Land Bank were affected by a cap on public sector pay, chairman Abdel Meguid Mohy El-Din told Amwal Al Ghad on Tuesday.

The Egyptian banking official further asserted that none of his employees had asked for quitting EALB as a result of a cap on public sector pay. “The bank operates normally.” Mohy El-Din noted

Designed to cut government spending, the pay cap of 42,000 Egyptian pounds ($5873.8) a month was imposed at the central bank and state-owned financial institutions in July, cutting salaries from an average 140,000 pounds a month for senior executives.

It was imposed by President Abdel Fattah al-Sisi, who has urged Egyptians to tighten their belts to help the country recover from turmoil following the 2011 revolt that toppled president Hosni Mubarak.

At least 150 senior bankers had recently quit the central bank and three major state-owned banks since the cap came into force in July. More were expected to go.

The most high profile banker to quit so far is Nidal Assar, who as central bank deputy governor managed Egypt’s foreign reserves, which are crucial for Egypt’s wheat and gas imports.

In addition, other big names recently quit such a Sherif Elwy who left his post as the second deputy chairman at the National Bank of Egypt, and Mohammed Abbas Fayed, who was the vice chairman of Banque Misr.