The President of the Federation of Egyptian Banks and Chairman of the Board of Directors of Banque Misr, Mohamed el-Etreby, said that the return of the new Certificate of Deposit (CD) or three years, with a fixed return of 19 percent, and a decreasing 22 percent, is “attractive.”
During an interview with the Saudi Al-Arabiya satellite channel, Etreby explained that the return on the new CDs is attractive because the current high inflation rates are only temporary.
He added that with the stability of the situation globally and locally, the inflation percentage will recede, “and this is what we hope in light of the policies in place. This could be a similar outcome to what happened in 2016.”
Etreby added that the time period for the availability of new CDs is open and a date has not yet been set for their termination.
The new certificates will not affect the bank’s profitability in the first year, due to the high price of the corridor.
“The Egyptian banking sector is strong and solid, and has succeeded in overcoming many crises and problems during the past periods, and the percentage of deposits to loans does not exceed 45 percent,” he continued.
The first certificate was offered for a period of three years, with a fixed return of 19 percent annually, to be dispensed monthly, and the second certificate for a period of three years.
There was a decreasing interest rate of 22 percent for the first year, 18 percent for the second year, and 16 percent for the third year, and the return is dispensed monthly.