3 state-owned banks issue new certificate with variable return

CAIRO – 15 April 2018: Three state-owned banks decided to issue a new saving certificate with a variable return for three years.

The National Bank of Egypt and Banque Misr issued Sunday a new saving certificate with a variable return after they had stopped issuing the 17 percent saving certificate that is disbursed every three months for 12 months.

The 17 percent certificate holders will continue to enjoy their benefits until the maturity of their certificates.

The new certificate will be issued for three years with a variable return of 17 percent and with changeable quarter payments; which are calculated at 0.25 percent higher than the deposit rate of the Central Bank of Egypt.

The yield changes periodically during the duration of the certificate, in accordance with the changes of the deposit rate at the Central Bank of Egypt.

In the same context, Chairman of Banque Du Caire Tarek Fayed said that his bank will issue three-year certificates with a variable return of 15.75 percent.

Fayed affirmed that the outcome of the new certificate will be disbursed monthly, adding that the certificate will be available from Sunday, April 15.

The Monetary Policy Committee of the Central Bank of Egypt lowered the interest rates for the second time this year by 1 percent on Thursday March 29.

The committee set the overnight rate, and the overnight lending rate, at 16.75 percent and 17.75 percent, respectively.

In February, the committee lowered the interest rates by one percent for the first time since the flotation of the Egyptian currency in November 2016, after inflation rates slowed down.