“Your money is safe.” The Egyptian Banks Association reassures depositors and warns against misinformation

The Federation of Egyptian Banks denied rumors about liquidity problems in the Egyptian banking sector, stressing that they are false and misleading.

According to a statement by the Federation of Egyptian Banks published by Masrawy, it confirmed that depositors' money is safe and that there is no truth to what is reported about liquidity problems in the Egyptian banking sector.

And the statement stated: “What is happening now about the confusion about this matter is a deliberate and directed misleading to combat the economic successes and gains achieved by the economic reform process in the banking sector and the Egyptian economy,” noting that “these successes were praised by international financing and evaluation institutions that witnessed Egypt.” Excellence and leadership in achieving growth rates that exceed growth in the countries of the region, and an affirmation that the Egyptian banking system is leading the economic development witnessed by the country.

The statement demonstrated the strength and durability of the Egyptian banking sector, with what it did during the years 2020-2021, applying the accommodative monetary policy launched by the Central Bank of Egypt to support the economic sectors in the face of the negative repercussions left by the Corona pandemic.

The statement gave an example of this by “reducing the interest rate by about 4% to stimulate the economy to grow since the beginning of 2020 to face the consequences of the Corona pandemic, postponing all credit dues to customers for a period of 6 months, and implementing the initiatives of the Central Bank of Egypt to stimulate the sectors of the Egyptian economy with a financing initiative worth 100 billion pounds. For the industrial private sector and the agricultural sector at an annual lending rate of 8% decreasing.

He explained that "all these initiatives are a strong indication that the Egyptian banking system enjoys a large amount of liquidity that enhances its ability to hire and lend."

It is noteworthy that the Central Bank of Egypt had announced on January 10, its approval of rules allowing it to provide emergency liquidity to local banks, given the important role that emergency liquidity represents in containing potential crises and limiting their impact.

The bank said in a statement that it will grant liquidity to banks in the event that they are unable to provide it from the "interbank" market or from other financial markets.

Follow our latest local and sports news and the latest political and economic developments via Google news