Proceeds from high yield saving certificates in NBE and BM reach nearly EGP 100 billion in just 48 hours

In remarks to ONTV’s TV show Kelma Akhira, Abou El-Fotouh stated that the proceeds from the new certificates reached EGP 66 billion at NBE and EGP 31 at BM by Friday evening.

The vice chairman also revealed that 50 percent of proceeds were totally new money and not money coming from other certificates, adding that some people exchanged their US dollars to acquire those new certificates.

On Wednesday, Egypt’s biggest state-owned banks, NBE and BM, issued new one-year maturity saving certificates with a 25 percent yield after one year, the highest yield on record, in an aim to contain rising inflation by encouraging savings.

The certificates are also available at a 22.5 percent yield for monthly disbursement.

According to Abou El-Fotouh, more than 70 percent of the linking of certificates has been implemented through alternative channels (Al-Ahly Net, Al-Ahly Mobile and the Call Centre).

He added that the employees in the two banks were present in the branches despite the Christmas holidays in order to reduce congestion on working days.

Both banks opened their doors on Friday and Sunday, officially holidays this week, to only serve clients interested in buying the new saving certificates and those who want to exchange foreign currencies.

Friday is an official weekend holiday in Egypt; whereas Sunday is a paid holiday for both the public and private sector on the occasion of Coptic Orthodox Christmas.

The vice chairman told ONTV that those certificates will only be available for a limited period given that they were issued for the specific purpose of fighting inflation and to withdraw liquidity.

“They will not last for a long time because they have many long-term effects on investments due to their high interest,” he added.