Governmental borrowing is boosting banks'credit portfolios
Total bank deposits grew by 0.6 per cent between April and May to reach LE951.7 billion, according to the latest figures published by the Central Bank of Egypt (CBE).
Government deposits, representing around 12 per cent of total deposits, increased LE903 million over the same month-on-month period, while non-governmental deposits were up LE5bn.
Total deposits, however, are slightly below the December 2010 level which stood at LE952bn.
Local currency deposits contributed to 68 per cent of total deposits in May 2011, down from an average of around 71 per cent in December 2010 and November 2010.
Credit offered by domestic banks grew by around LE6bn (0.7 per cent) between April and May 2011, reaching LE885.1bn.
Such credit has grown by 10 per cent -- or LE80bn -- since December, out of which LE70bn was extended to the government reflecting the inclination of the country's current rulers towards heavy lending to cover the budget deficit.
Short link: