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Banks to be vital for supporting the economy in 2017: Elkosayer - Daily News Egypt

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Banks to be vital for supporting the economy in 2017: Elkosayer

PBDAC will continue its role to serve Egyptian peasants with greater diversification of its products

Chairperson of the Principal Bank for Development and Agricultural Credit (PBDAC) Elsayed Elkosayer said that banks will be vital to support the Egyptian economy this year, as they have always been before.

Elkosayer explained that despite the many challenges, there are some positive indicators of a significant breakthrough in various economic sectors.

He pointed out that completing the new investment law and passing other investment-stimulating legislation, including safe exits, combined with disbursing tranches of the International Monetary Fund loan and offering US dollar denominated bonds on international markets, all give positive signs of the economy’s growth; hence, assisting banks’ expansion in 2017.

He added that the government is trying to bridge the budget deficit and lower the volume of borrowing from banks, which will increase the size of the surplus at banks to be channeled to supporting and financing other economic sectors.

On the most prominent challenges that may face banks in the new year, Elkosayer said that the high interest on savings certificates and the reluctance to increase interest on loans will reduce banks’ profits in 2017. He noted that banks will have to sacrifice part of their earnings to support the state.

With regard to the PBDAC’s activity in 2017, Elkosayer said that the administration of the bank continues to implement its restructuring plan to amend its operations and policies of granting loans and attracting deposits. This comes after the Egyptian parliament passed the PBDAC Law at the end of 2016.

He added that the bank would continue its role in serving the Egyptian agricultural sector and Egyptian farmers, along with developing its banking services to better help clients. Moreover, he noted that the bank aims to amend its operations to fit the initiatives posed by the Central Bank of Egypt (CBE), including financing small- and medium-sized enterprises and mortgage financing.

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