NBE, Banque Misr new CDs attract EGP 11 bln in 24 hours

Ahram Online , Saturday 6 Jan 2024

The National Bank of Egypt (NBE) and Banque Misr collected EGP 11 billion in proceeds through their high-yield certificates of deposit (CDs) within 24 hours following issuance, Mohamed El-Etreby, head of Banque Misr and chairman of Federation of Egyptian Banks, said on Friday.

NBE and Banque Misr.
NBE and Banque Misr.


During a phone call with the Al-Hekaya TV show on MBC Misr, El-Etreby revealed that the NBE secured EGP 7 billion, while Banque Misr garnered EGP 4 billion.

On Thursday, the NBE and Banque Misr announced issuing new CDs with 23.5 percent and 27 percent annual yields, respectively.

These certificates, with a minimum purchase value of EGP 1,000 and incremental options, are available for acquisition through online banking services, mobile applications, and branches.

Commencing this Sunday, the two banks are set to initiate the repayment process for their one-year CDs, issued in January 2023, amounting to over EGP 500 billion in principal and interest of 22.5 percent and 25 percent

El-Etreby attributed the introduction of the 27 percent decreasing-yield CDs to the positive outlook on declining inflation rates that are anticipated in the forthcoming years, largely due to efforts undertaken by the government.

Drawing attention to a similar experience in 2016, when inflation peaked at 33 percent and interest rates soared to 22 percent, El-Etreby expressed optimism about the potential to replicate this experiment and reduce the inflation rate, which eventually stabilized at six percent.

Egypt faced a surge in headline inflation rates during the initial months of 2023, reaching its peak in September at an alarming 40.3 percent.

However, the inflationary trend began to decelerate in October 2023, with the annual headline inflation rate declining to 36.4 percent in November 2023, according to the Central Agency for Public Mobilization and Statistics (CAPMAS).

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