Banque Misr’s high yield saving certificates will be canceled within days: El Etreby

Banque Misr has achieved the specific purpose of launching the Talaat Harb high-yield savings certificates so it will not be around for much longer than the end of this month, according to its Chairman.

At the beginning of this year, Banque Misr decided to issue the Talaat Harb savings certificate which is a one-year savings certificate with a high yield of 25% annually and a fixed rate of return throughout the period of holding the certificate. The rate of return of the certificate will be disbursed at the end of the period. In addition, the return can be disbursed monthly with a return of 22.5% annually.

Furthermore, the certificate categories start with EGP 1,000 and its multiples for natural persons or minors, whether Egyptians or foreigners. The period is calculated from the day following the purchase.

Recently, Egypt’s biggest state-owned banks, NBE and BM, issued new one-year maturity saving certificates with a 25 percent yield after one year, the highest yield on record, in an aim to contain rising inflation by encouraging savings.

The move has come as the local market has been anticipating a devaluation of the Egyptian pound for the third time in recent months, following the approval of a new $3 billion loan programme from the International Monetary Fund (IMF), which took place in December.

The bank certificates aim to contain the rising inflation by encouraging savings. Egypt’s inflation has been accelerating rapidly since March, reaching over 21 percent by the end of November – the highest rate in almost five years.