No intention to issue new cash banknotes: Gamal Negm

CAIRO – 26 July 2018: “There is no intention to issue a new cash category of LE 500 or LE 1,000 banknote at the moment,” Deputy Governor of the Central Bank of Egypt (CBE) Gamal Negm said.

Negm stressed that the state is currently supporting the expansion in the field of financial technology and electronic payments.

CBE announced earlier that the volume of currency issuance increased by LE 75 billion at the end of January 2018, reaching LE 444 billion, compared to LE 369 billion in June 2016.

“The volume of funding pumped into the Mortgage Finance Initiative has reached LE 14.5 billion so far,” Negm stated.

In 2014, CBE issued a Mortgage Finance Initiative, offering banks LE 10 billion for 20 years at discounted rates to re-lend to low and average-income investors at a declining rate of return on housing projects in urban communities.

CBE decided in October 2017, to double the amount allocated to the mortgage initiative for the low and average income to LE 20 billion instead of LE 10 billion.

This came on the sidelines of Negm's participation in the Arab Banking Union Forum, which is held in cooperation with the Central Bank of Egypt and the Union of Banks of Egypt in Hurghada, on July 26-28, under the title "Green Banking - The Road to Sustainable Development".

Negm said that Egypt’s foreign reserves are at good levels, hoping to reach $1 trillion.
He affirmed that the Egyptian market is one of the world's most stable and attractive investment markets.

Regarding offering the banks on the Egyptian Exchange (EGX), he noted that the plan of the banks’ initial public offering is on track within the government program and in coordination with the government agencies concerned with this file.

In 2016, Egypt launched the government’s IPO program to offer shares over three to five years in several state-owned companies in fields such as petroleum, services, chemicals and real estate.

The state’s IPO program comes in light of the economic reform program adopted by Egypt and is conducted under the supervision of the Ministry of Investment.

It covers a period of three to five years, aiming to offer partial stakes in some state-owned companies on the stock exchange (EGX). It will serve as a main tool to attract local and foreign capital flows to Egypt, aiming to increase funding to Egyptian companies and maximize the benefit from state assets.

The Arab Banking Union Forum will shed light on the economic, social and environmental dimensions of green banking and sustainable development, as well as the impact of climate change on banking and financial services, and the role of central banks and banks in sustainable development through green banking.

The forum will also focus on green banking mechanisms to enhance financial coverage and small and medium enterprises; additionally, it will highlight the importance of digital transformation and the commitment to apply the principles of governance in enhancing future banking services.

The forum will explore the best practices of green banking, sustainable financing, and will review the experiences of countries, the role of corporate social responsibility in achieving sustainable development, and the role played by the financial sector, legislative and regulatory bodies in managing environmental and social risks of green banking.