Last Update 9:58
Sunday, 17 November 2019

Suez Canal certificate sales inject LE27 bn into Egypt's banks: CBE governor

Sales of certificates to fund Suez Canal extension reap a total of LE64 billion, with 82 percent of buyers individuals

Waad Ahmed , Sunday 21 Sep 2014
Hisham Ramez
Egypt's Central Bank Governor Hisham Ramez (Photo: Reuters)
Views: 1988
Views: 1988

Investment certificates issued earlier this month to finance the digging of a new Suez Canal have attracted LE27 billion ($3.8 billion) of fresh cash to the Egyptian banking system, announced the central bank's governor, Hisham Ramez, on Sunday.

The government has gathered a total of LE64 billion from the certificates, surpassing the LE60 billion initially targeted to finance the national project, Ramez told reporters at a press conference.

The certificates were sold exclusively to Egyptians in the local currency at values of LE10, LE100, LE1000 at an interest rate of 12 percent, the highest offered on any such instruments by Egyptian banks.

They were met with huge popular demand, as 82 percent of buyers were individuals, with LE15.7 million worth of the lower value LE10 and LE100 certificates sold.

Only 10 percent of Egyptians have bank accounts, according to the World Bank.

A total of $1.5 billion were converted to Egyptian pounds inside the banking system to buy the certificates, and Egyptian expatriates bought LE350 million worth of certificates.

The extra LE4 billion collected will be used to fund the project, confirmed Ramez.

The extension of the canal, which links the Mediterranean Sea to the Indian Ocean via the Red Sea, is expected to increase annual revenues from the waterway to Egypt's coffers over the next nine years to $12-13 billion, according to Finance Minister Hany Kadry Demian.

Short link:


Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.

Aladdin, Egypt
22-09-2014 04:58am
What People Need to know?
You should tell public that investment money will reduce inflation and create more jobs of about 900,000 of high paying jobs. How simple and primitive is our thinking. Tahya Misr.
Comment's Title

© 2010 Ahram Online.