The Central Bank of Egypt (CBE) has revealed the volume of credit facilitiesgranted by banks operating in the local market reached about EGP 2.448trn in November 2020.
It said that the volume of these facilitiesincreased by EGP 248.3bn during the period from July to November 2020, reflecting a growth rate of 11.3%.
Credit facilities refer to the loans granted by banks to their clients, in addition to documentary credits, and letters of guarantee opened for them to cover import operations.
In its monthly report, the CBE attributed this rise to an increase in the volume of credit facilities granted by banks to the government by EGP 129.1bn at a rate of 19.2%. There was also an EGP 119.2bn increase in the volume of facilities granted to non-government entities, at a rate of 7.8%.
The CBE noted that the increase in funds granted to non-government entities was driven by the increase in the volume of facilities in local currency, at a value of EGP 120.8bn. There was an additional increase in facilities in foreign currencies, equivalent to EGP 8.3bn.
It said that the private business sector obtained about 59% of the total non-governmental credit facilities granted by banks to various economic sectors.
The industrial sector received the largest amount of non-governmental credit facilities, as it alone received about 31.1% of the total facilities. It was followed by the services sector, which acquired 24.6% of all facilities, and then the trade sector with 11%.
The agricultural sector continued its ongoing trend, obtaining the lowest percentage of credit facilities granted by banks to the various economic sectors. It acquired only 1.9% of the volume of these facilities until the end of September 2020
According to the CBE, there are other sectors, which were not mentioned in detail, but most prominent of which is the family sector, which received about 31.4% of the volume of these facilities.
It said that total bank deposits rose to EGP 5.126trn by the end of November 2020, compared to EGP 5.088trn by the end of October 2020.
The CBE pointed out that government revenues fell to EGP 865.3bn by the end of November 2020, compared to EGP 874.1bn in the previous month. Of this amount, about EGP 760.134bn were in the local currency, whilst EGP 105.170bn were in foreign currencies.
On the other hand, non-governmental deposits increased to about EGP 4.260trn by the end of November 2020, compared to EGP 4.213trn in the previous month. Of this, about EGP 3.611trn was in the local currency, and EGP 649.55bn was in foreign currencies.
The CBE also said that net foreign assets increased by EGP 127.6bn, an increase of 104.5%, during the period from July 2020 to November 2020, to reach about EGP 249.701bn.
It noted that this increase came as a result of an EGP 41.5bn increase in net foreign assets in its care, and up to EGP 86.1bn in net foreign assets at banks.
Moreover, the CBE indicated that the local banking system’s domestic assets increased during the same period by EGP 179.5bn, or 4.1%. This was driven by the increase in domestic credit by EGP 168.6bn at a rate of 3.5%, whilst the negative balance of the net budget items decreased by EGP 10.9bn at a rate of 2.5%.
The CBE said that domestic credit rose as a result of the increase in net liabilities from the family sector by EGP 65.5bn, and from the private business sector by EGP 56.5bn. This occurred alongside the rise from the government sector by EGP 45bn, and from the public business sector by EGP 1.6bn.