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Banks to increase size of financing for factories and projects, reduce size of funding budget deficit: Elkady - Daily News Egypt

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Banks to increase size of financing for factories and projects, reduce size of funding budget deficit: Elkady

United Bank aims to implement a strong expansion plan in various sectors after the capital increase by the CBE

Chairperson of United Bank of Egypt Ashraf Elkady said that the banking sector is an integral part of the national economy, and directly affected by everything that affects the economy. He added that the more improvement occurs in the national economy, the less risks are likely to face the Egyptian banking sector.

Elkady noted that at this important stage of building the economy, Egypt needs strong banking entities, pointing out that Egyptian banks are strong and attractive to local and foreign investments, in addition to enjoying good profitability indicators.

“We are on the right track,” he said. “Economic reform measures have started.” He noted that there have been major national projects under construction across Egypt.

Moreover, he highlighted the agreement with the International Monetary Fund (IMF) as being a positive point that will restore confidence in the Egyptian economy, bring back foreign direct and indirect investments, boost confidence of other financial institutions in Egypt, and reflect on the activity of banks in Egypt.

On the banks’ opportunities in the new year, Elkady said that banks are likely to reduce their investments in government debt instruments to meet the budgetary sphere deficit after obtaining the IMF loan; hence, he explained that banks will direct their funds to open new credit channels to employ their liquidity and increase the size of their funding towards projects and factories.

With regard to the United Bank of Egypt’s activity in the new year, he said that the bank aims to implement a strong expansion plan, especially after the Central Bank of Egypt increases its [United Bank] capital.

He pointed out that the bank aims to become a partner in sustainable Egyptian development plans, and to be the first choice for clients in various governorates of the country, as well as work to attract new customers by offering a diverse range of traditional and Sharia-compliant financing solutions, whether in long- or short-term financing schemes.

He added that the bank’s strategy is built on the basis of expansion in the financing of small- and medium-sized projects in all governorates, in addition to granting more financing to all economic sectors, including large, medium, small, and micro enterprises, as well as individuals, mortgage, personal loans, credit cards, and assessment.

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