NBE: EGP 70 bn, the proceeds of two certificates, 19% fixed and 22% diminishing in 2 days

Yehia Abou El-Fotouh, Vice Chairman of the Board of Directors of the National Bank of Egypt, stated that the bank’s proceeds from issuing 2 new savings certificates, with a fixed return of 19% and 22% diminishing, increased to EGP 70 bn within the first 2 days of their issuance.

Abou El-Fotouh indicated, during a telephone interview, that there is no specific date for stopping the issuance of the 2 new savings certificates, indicating that the lending interest rate ranges from 18.25% to 19.25% as announced by CBE.

Last Sunday, NBE revealed the issuance of 2 new savings certificates with a fixed return of 19% for a Maturity of 3 years, and a diminishing return of 22%.

The second certificate came with a diminishing return for 3 years, as the annual return rate was 22% for the first year, 18% for the second year, and 16% for the third year, the return is paid monthly.

This step comes after CBE decided to raise interest rates by 200 bp, in order to face inflation.

The Monetary Policy Committee of CBE had issued in last meeting, March 30, 2023, to raise the rates of the overnight deposit and lending return, and the price of the main operation of CBE by 200 bp, to reach 18.25%, 19.25% and 18.75%. % respectively.

The Monetary Policy Committee of CBE also raised the credit and discount rate by 200 bp, to reach 18.75%.