CIB to halt Egyptian treasury purchases

Ahram Online, Sunday 13 Nov 2011

Chairman puts decisoin down to belief that it isn't the role of domestic banks to finance budget deficit

One of Commercial International Bank subsidiaries

Commercial International Bank said that it will cease purchasing government securities for now, Zawya reported.

CIB chairman and managing director Hisham Ezz El-Arab stated that CIB sets a limit on the amount of government securities it holds, which fluctuates according to movements in the yields.

"We won't be buying and the decrease [in Treasury bill purchases] is because domestic banks shouldn't be financing the budget deficit," Ezz Al-Arab said,

A CIB spokesman confirmed to beltone financial that the bank won't increase its exposure to Egyptian sovereign risk, though it would not rule out rolling over its existing securities holdings when they mature.

Short link: