Arab Today, arab today egypt\s government fails to obtain treasury bills
Last Updated : GMT 20:08:40
Arab Today, arab today
Arab Today, arab today

Banks fear non-payment, interest rate at 14%

Egypt\'s government fails to obtain treasury bills

Arab Today, arab today

Arab Today, arab today Egypt\'s government fails to obtain treasury bills

Egyptian banks are 'taking advantage' of the economic mess
Cairo - Mohammed Salah

Egyptian banks are 'taking advantage' of the economic mess The Egyptian government has failed to obtain targeted loans from the local banks, known as the treasury bills, in the last three months. Figures shows that the final total of loans sits at 155 billion Egyptian pounds , with the target being 170 billion Egyptian pounds. As a result, the government's inability to face the economic problems along with fears that the it will not be able to repay bank loans, has led to an increase in the interest rate on government debt instruments to 14 percent.
In addition, the government has not paid back what it borrowed from banks over the last few years, using it to meet the budget deficit by providing strategic goods and paying salaries of public sector employees. The value of domestic debt during December reached one trillion and 238 billion Egyptian pounds.
The Chairwoman of the Board of Directors at al-Mashoura financial services, Basant Fahmi said: "The current events have a very bad impact on the economy, which is undergoing a critical and highly dangerous condition. There is no stable economy in the absence of political stability, as the current situation discourages new investments."
Fahmi also said that foreign investors are reluctant to enter the Egyptian market, "fearing for their money, under the existing circumstances and conditions."
Fahmi explained that public banks excessively granted investments in the government's treasury bills, which made the banking system suffer as a result of the inability of the government to pay its debts. "Under the current budget deficit, the government will not be able to pay wages for roughly 6 million employees in the public sector, which will increase prices of commodities and other currencies, against the pound, as well lead to a higher rate of inflation."
Fahmi added that banks are trying to seize the opportunity, in light of the needs of the government to borrow from banks, and resort to raise the interest rate on government’s debt instruments, which "exceeded the barrier of 14 percent."Meanwhile, government sources have said that banks are concerned by rumours of bankruptcy and the critical economic situation as a result of their refusal to finance the government. This has led to the cancellation of tenders for treasury bills during the past few days reducing the bank's investment portfolios in loans to the government, and raising interest rates to an unprecedented record level.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today egypt\s government fails to obtain treasury bills Arab Today, arab today egypt\s government fails to obtain treasury bills

 



Arab Today, arab today
Arab Today, arab today Fadi Kataya explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures

GMT 11:26 2017 Wednesday ,22 February

Dutch corporate takeover defences tough to breach

GMT 11:14 2017 Wednesday ,22 February

Lloyds Banking Group posts surging profits

GMT 10:01 2017 Tuesday ,21 February

Egypt pound rebounds from flotation slide

GMT 09:57 2017 Tuesday ,21 February

Greece agrees to bailout reforms compromise

GMT 09:55 2017 Monday ,20 February

Thailand 2016 growth up but below junta target

GMT 09:29 2017 Monday ,20 February

Kraft Heinz withdraws bid for Unilever

GMT 09:22 2017 Monday ,20 February

China's huge debt poses big headache for central bank
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday