Egyptian Banks Issue 30% Saving Certificates

The two largest state-run banks in Egypt issued new high-yield investment certificates of up to 30% with a maturity of 3 years, and the return decreases in the second and third years to 25% and 20%, respectively, with multiple payment cycles for the returns.

The National Bank of Egypt (NBE) decided to offer a three-year certificate with a decreasing interest, at an annual price of 30% for the first year, 25% for the second year, and 20% for the third year, with the return paid annually.

This came after the Monetary Policy Committee of the Central Bank of Egypt (CBE) decided to raise the overnight deposit and lending rates and the Central Bank’s main operation rate by 600 basis points to reach 27.25%, 28.25%, and 27.75%, respectively. It was also decided to raise the credit and discount rates by 600 basis points to reach 27.75%.

NBE decided to amend the return rate on the three-year decreasing platinum certificate with the monthly return disbursement period to become an annual rate of 26% for the first year, 22% for the second year, and 18% for the third year for new issues from today.