Arab Today, arab today egypt\s government fails to obtain treasury bills
Last Updated : GMT 02:07:20
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.

arabstoday
arabstoday

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

 



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 Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today unveils Joon - the 'millenials' airline

GMT 13:36 2017 Saturday ,23 September

unveils Joon - the 'millenials' airline
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Iran tests new medium-range missile

GMT 21:24 2017 Saturday ,23 September

Iran tests new medium-range missile
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Big Western brands polluting oceans

GMT 20:10 2017 Saturday ,23 September

Big Western brands polluting oceans
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Carmakers face billions in European

GMT 12:37 2017 Saturday ,23 September

Carmakers face billions in European
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Lebleba is preoccupied in filming 'Back Street'

GMT 08:56 2017 Thursday ,21 September

Lebleba is preoccupied in filming 'Back Street'
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 08:39 2017 Friday ,22 September

New Hurdles as Republicans Rush

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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