Total loan balances of Egyptian banks increased by more than EGP 1.5 trillion during the first seven months of this year, a growth of 15%.
The data showed that banks' loans rose to EGP 11.6 trillion by the end of July, compared to EGP 10.09 trillion by the end of December 2023. The Central Bank of Egypt has raised interest rates by about 800 basis points since the beginning of this year, reaching an all-time high of 27.25 percent for deposits and 28.25 percent for lending, in order to rein in soaring inflation.
CI Capital attributed the significantly higher credit rates with interest rates reaching the highest levels ever, to the impact of the exchange rate, which raised the value of foreign currency loans to their pound equivalent by more than 60 percent.
Source (Al-Arabiya.net Website, Edited)
