New Egypt Central Bank's governor, Hisham Ramez (Photo: Al-Ahram)
Although the Shura Council (upper house) already passed a controversial tax increase on national banks, Central Bank of Egypt Governor Hisham Ramez claims it is still "up for review" and has made plans to restudy the tax with the finance minister.
Ramez spoke to media on Monday after a meeting with the economic ministerial group amid what seems to be a tug-of-war over Egypt's economics and finances.
The amendments championed by an MP of the Muslim Brotherhood's Freedom and Justice party (FJP) to banking regulations cancel the tax deductibility hitherto accorded to 80 per cent of loan loss provisions held by Egyptian banks.
The amendments were not subject to discussion before being submitted to the legislature for debate.
Bankers fiercely criticised the decision and many banking officials have called for the move to be reversed.
"I knew about the law on loan loss provisions from newspapers," Ramez said during an interview with privately-owned Orbit channel.
He added that he informed President Morsi of his rejection of the way the law was passed: "The lack of coordination between the bank and the finance ministry explains how the law was issued without me being informed."
Ramez also said there are indirect attempts to interfere in his work "...but the bank is independent and I will resign if a decision or something else will be imposed on me."
Short link: