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CENTRAL BANK OF EGYPT
ECONOMIC REVIEW
Vol. 52 No. 4
2011/2012
Economic Research Sector
The Economic Review is issued by the Economic Research Sector at the Central Bank of Egypt (CBE) on a quarterly basis. It aims to make available to a broad readership of specialists and non-specialists a wide range of information on the performance of the Egyptian economy during the reporting period. The CBE posts the Review on its website: www.cbe.org.eg.
Contents
Page
Main Macroeconomic Indicators of the Egyptian Economy 2011/2012
1- Macroeconomic Developments 1/1 - Gross Domestic Product (GDP) ………………………………………… 1 1/2 - Labor Force, Employment and Unemployment......................................... 9 1/3 - Cotton …………………………………………………………………… 10 1/4 - Suez Canal.................................................................................................. 14 1/5 - Tourism …………………………………………………………………. 16 1/6 - Inflation ………………………………………………………………… 22 2- Monetary and Banking Developments 2/1 - Monetary and Banking Policy and Monetary Aggregates……………… 27 2/1/1 - Monetary Policy………………………………………………………… 27 2/1/2 - Reserve Money ……..…………………………………………………… 30 2/1/3 - Domestic Liquidity and Counterpart Assets …………………………….. 33 2/1/4 - Payment Systems and Information Technology (IT).…………………… 37 2/1/5 - RTGS and SWIFT Local Service ………………………………………. 39 2/2 - Banking Developments………………….…..…….…………….………. 41 2/2/1 - Banking Reform ………………………………………..………………… 41 2/2/2 - Supervision Sector …………………………..……………………………… 46 2/2/3 - Overview of Banks' Aggregate Financial Position………………………… 51 2/2/4 - Interbank Transactions ……………………….…………………………. 54 2/2/4/1- Transactions with Banks Abroad …………………..……………………… 54 2/2/4/2- Interbank Transactions in Egypt …………………………………………… 54 2/2/5 - Deposits …………………………………………………………………… 55 2/2/6 - Lending Activity ……………………..…………………………………… 57 3- Non-Banking Financial Sector 3/1 - Stock Market ……………………………………………………………. 59 3/2 - Mutual Funds ………. …………………………………………………… 66 4- Public Finance and Domestic Public Debt 4/1 - Consolidated Fiscal Operations of the General Government ……………. 67
4/1/1 - Budget Sector (Administrative System – Local Administration- Service Authorities)………………………………………………………………..
68
4/1/2 - Budget Sector, NIB and SIFs …………………………………………… 73 4/2 - Domestic Public Debt …...………………………………………………. 75 4/2/1 - Debt of the Government (Net) ………………………………………….. 75 4/2/2 - Debt of Public Economic Authorities (Net) …………….......................... 78 4/2/3 - Debt of the NIB (Net) …………………………………………………… 79 4/2/4 - Intra-Debt ……………………………………………………………… 79
5 - External Transactions 5/1 - Foreign Exchange Market and NIRs……................................................ 80 5/2 - Balance of Payments…………………………………………………… 82 5/2/1 - Current Account ………………………………………………………. 83 5/2/1/1- Trade Balance ………………………………………………………… 83 5/2/1/2- Balance of Services and Income and Net Transfers…………………… 83 5/2/2 - Capital and Financial Account…………………………………………. 87 5/3 - External Trade………………………………………………………… 90 5/3/1 - Structure of Export Proceeds and Import Payments…………………… 90 5/3/2 - Sectoral Distribution of Merchandise Transactions……………………. 94 5/3/3 - Geographical Distribution of Merchandise Transactions………………… 96 5/3/4 - Breakdown of Trade by Main Commodity…………………………… 98 5/4 - International Finance …………………………………………………… 100 5/4/1 - Foreign Direct Investment (FDI) in Egypt ……………………………… 103 5/4/2 - External Official Grants …………………………..…………………. 106 5/4/3 - External Debt…………………………………………………………… 108 Annex
A- Statistical Section………………….…………………………………………. 115
Main Macroeconomic Indicators of the Egyptian Economy
2011/2012
Total (2011) 1009.45 (Thousand km2) Populated 76.9 (Thousand km2)
Internal Population in mid-2011 (preliminary) 80.41 (million persons) Annual Growth Rate (%) 2.2 Number of Employees (at End of June) 23. 5 (million employees) Annual Growth Rate (%) 1.1
GDP at Market Prices (LE bn) 913.8 Annual Growth Rate (%) 2.2 GDP at Factor Cost (LE bn) 873.1 Annual Growth Rate (%) 2.2
GDP by Sector (A+B)(percentage point) 2.2 A) Productive Sectors 0.7 of which:
Agriculture, Irrigation and Fishing 0.4 Construction and Building 0.2 Manufacturing (Oil Refining & Others) 0.1
B) Services Sectors 1.5 of which:
General Government 0.3 Communications 0.2 Wholesale and Retail Trade 0.2 Suez Canal 0.1 Transportation and Storage 0.1 Tourism 0.1
1) Area (Egyptian General Survey Authority)
2) Population and Employment
3) GDP at 2006/2007 Prices
June 4) Annual Inflation Rate (%) (Month/ Corresponding Month of the Previous FY)
2011 2012 CPI (urban) (January 2010 = 100) 11.8 7.3 PPI by Economic Activity (2004/2005 = 100) 19.4 -3.7
5) Annual Discount and Interest Rates (%) End of June 2011 2012
CBE Lending and Discount Rate 8.50 9.50 Interest Rates on TB Repos (7-days) 9.25 9.75 CBE Overnight Deposit and Lending Rates
Deposit 8.25 9.25 Lending 9.75 10.25
Interest Rate on Deposits of More than One Month and up to Three Months 6.60 7.70 Interest Rate on One Year or Less Loans 11.00 11.90
June 6) US Dollar Exchange Rate Announced by CBE (PT/Dollar)
2011 2012
Buy and Sell Exchange Rates (Average of the Year) 582.2 600.8 End of the Year (Average Market Buy Rate) 595.6 604.6
7) Consolidated Fiscal Operations of the General Government
2011/2012 Actual
(LE bn)
-Total Revenues 348.8 -Total Expenditures 516.4 Cash Deficit/Surplus 167.6 Net Acquisition of Financial Assets -1.9 Overall Deficit 165.7 Total Finance 165.7 -Domestic Finance 184.0
Banking 145.3 Non-Banking 38.7
-Foreign Borrowing -9.1 -Others -1.9 -Revaluation Differences 1.5 -Net Privatization Proceeds - -Difference between TBs Face and Present Value -11.4
-Discrepancy 2.6 -Cash Deficit (Surplus) as a Percentage of GDP 10.9 -Overall Fiscal Balance as a Percentage of GDP 10.7 -Expenditures as a Percentage of GDP 33.5 -Revenues as a Percentage of GDP 22.6
End of June 8) Domestic Public Debt (LE bn)
2011 2012 Gross, due on: 1044.9 1238.1 -Government Debt (net) 808.1 990.5 -Public Economic Authorities Debt (net) 66.3 63.1 -NIB Debt (net) minus intra-debt 170.5 184.5
End of June 9) Monetary Survey (LE bn)
2011 2012 Domestic Liquidity (M2) 1009.4 1094.4
Growth Rate (%) 10.0 8.4 Reserve Money 251.0 263.7
Growth Rate (%) 23.6 5.1 Money Supply (M1) 248.7 274.5
Growth Rate (%) 16.2 10.4 Currency in Circulation/Money Supply (%) 67.5 70.7 Foreign Currency Deposits/Total Deposits (%) 21.0 20.7 Banking System Foreign Assets, of which: 295.5 207.0 CBE Foreign Assets 156.3 92.2 Banking System Foreign Liabilities, of which: 42.0 49.3 CBE Foreign Liabilities 9.1 16.1 Total Deposits with Banks (Excl. CBE) 957.0 1023.5 In Local Currency 724.9 777.8 In Foreign Currencies 232.2 245.7 Total Lending and Discount Balances Extended by Banks (Excl. CBE), of which: 474.1 506.7 To Government and Public Economic Authorities 39.8 33.6 To Business Sectors (Public and Private) 317.4 344.8 Portfolio and TBs with Banks (Excl. CBE), of which: 474.2 555.3 TBs and Government Securities 412.2 498.3 Loans/Deposits with Banks (%) 49.5 49.5 Investment in Securities, TBs and Equity Participation/Deposits (%) 49.5 54.3
Fiscal Year 10) Balance of Payments (US$ bn) 2010/2011 2011/2012
Current Account & Transfers (6.1) (7.9) Trade Balance (27.1) (31.7) Merchandise Exports 27.0 27.0
Oil and its Products % 45.0 48.7 Others % 55.0 51.3
Merchandise Imports (54.1) (58.7) Intermediate Goods % 29.2 28.8 Investment Goods % 22.7 23.3 Consumer Goods % 28.8 31.4 Fuel, Raw Materials and Others % 19.3 16.5
Services Balance 7.9 5.4 Receipts, of which: 21.9 20.9
Transportation % 36.9 41.1 Travel % 48.4 45.1 Investment Income % 1.9 1.2
Payments, of which: 14.0 15.5 Transportation % 9.9 8.9 Travel % 15.1 16.1 Investment Income % 46.2 44.8
Transfers 13.1 18.4 Official % 5.7 3.4 Private % 94.3 96.6
Capital and Financial Account (4.2) (1.4) Overall Surplus/(Deficit) (9.8) (11.3)
June 11) Outstanding External Debt (US$ bn) 2011 2012
Total 34.9 34.4 Due on the Government and Public Sector 33.0 32.7 Due on the Private Sector 1.9 1.7
-1-
1- Macroeconomic Developments
1/1- Gross Domestic Product (GDP)
Egypt's economy showed a relative recovery in FY 2011/2012. Real GDP growth (at factor cost and market prices) inched up to 2.2 percent (from 1.8 percent at market prices, and 1.9 percent at factor cost in FY 2010/2011). The improvement is traced to the rise in real GDP growth at factor cost in Q3 (Jan./ March 2012) and Q4 (April/ June 2012) of the reporting year, to register 5.2 percent and 3.3 percent, in order (against -3.8 percent and 0.3 percent in the respective quarters a year earlier).
Gross Domestic Product at Constant Prices∗
(LE bn) Growth Rate (%)
Jan./ April/ April/ Jan./ April/ April/ FY March June June
FY March June June
2010/11 2011/12 2012 2011 2010/11 2011/12 2012 2011 GDP at factor cost and constant prices
854.0
873.1
209.4
223.0
215.8
1.9
2.2
5.2
3.3
0.3 Indirect taxes (net) 40.0 40.7 8.9 12.4 12.0 -1.7 1.7 4.7 3.3 0.8 GDP at market prices 894.0 913.8 218.3 235.4 227.8 1.8 2.2 5.2 3.3 0.4 Source: Ministry of Planning ∗ At 2006/2007 prices
Real GDP Growth Developments (At Factor Cost)
5.1
1.9 2.2
0.3 0.3 0.4
5.2
3.3
-3.8
5.5 5.7
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
2009
/201
0
2010
/201
1
2011
/201
2
July
/Sep
t.
Oct
./Dec
.
Jan.
/Mar
.
Apr
./Jun
e
July
/Sep
t.
Oct
./Dec
.
Jan.
/Mar
.
Apr
./Jun
e
2010/2011 2011/2012
(٪)
-2-
- GDP (at factor cost and 2006/2007 prices)
Productive sectors performance revealed a slight decline in the relative
importance of domestic demand-driven sectors, constituting 89.7 percent of real GDP growth in FY 2011/2012 (against 90.7 percent a year earlier). The increase in real GDP growth at factor cost, as mentioned earlier (2.2 percent against 1.9 percent) stemmed from higher contributions of a number of sectors, as compared with the previous FY. The key contributors to the increase were manufacturing (0.11 percentage point against a negative 0.15 point), agriculture and irrigation (0.39 point against 0.36 point), wholesale and retail trade (0.21 point against 0.17 point) and transportation and storage (0.12 point against 0.09 point). By contrast, the general government made a lower contribution of 0.26 point (against 0.32 point), and so did communications (0.22 point against 0.27 point) and social insurance (0.09 point against 0.15 point).
The relative share of external demand-driven sectors in real GDP growth
mounted from 9.3 percent to 10.3 percent, adding 0.23 percentage point (against 0.18 point). The main contributor was tourism (0.09 point against a negative 0.25 point). Conversely, the share of Suez Canal retreated from 0.35 point to 0.13 point, and of extractions from 0.08 point to as low as 0.01 point.
Real GDP Growth at Factor Cost(Annual Basis)
0.7
5.9
2.8
5.24.1
2.0 2.23.23.3 2.8
4.62.9
2.32.61.9
4.5
0.1
2.9 3.9
-7.0-6.0-5.0-4.0-3.0-2.0-1.00.01.02.03.04.05.06.07.08.09.0
10.011.012.013.0
Agr
icul
ture
,Irr
igat
ion
&Fi
shin
g
Extr
actio
ns
Man
ufac
turin
g
Elec
tric
ity
Wat
er
Sani
tatio
n
Con
stru
ctio
n &
Bui
ldin
g
Tran
spor
tatio
n &
Stor
age
Com
mun
icat
ions
Info
rmat
ion
Suez
Can
al
Who
lesa
le &
Ret
ail T
rade
Fina
nce
Insu
ranc
e
Soc
ial I
nsur
ance
Tour
ism
Rea
l Est
ate
Gen
eral
Gov
ernm
ent
Soci
al S
ervi
ces
%
Fiscal Year 2011/2012 (2.2%) Fiscal Year 2010/2011 (1.9%)
-3-
Growth Rate and Share of Productive Sectors in Real GDP Growth (At Factor Cost)
Sector Share in Real GDP Growth
(Percentage Point) Growth Rate
(%) FY Jan./March April/June FY Jan./March April/June
2010/11 2011/12 2012 2011 2012 2010/11 2011/12 2012 2011 2012
Domestic Demand- Driven Sectors
Agriculture, irrigation and fishing
0.36 0.39 0.42 0.28 0.29 2.7 2.9 3.1 2.5 2.5
Manufacturing (0.15) 0.11 0.86 (0.66) 0.63 (0.9) 0.7 5.8 (3.8) 3.8 Electricity 0.06 0.09 0.14 0.03 0.10 4.5 5.9 9.5 2.3 6.5 Construction and building
0.19 0.18 0.52 0.01 0.39 3.7 3.3 10.2 0.3 7.0
Transportation and storage
0.09 0.12 0.28 0.16 0.17 2.0 2.8 7.9 3.4 3.4
Communications 0.27 0.22 0.38 0.11 0.22 6.7 5.2 9.1 2.3 4.6 Wholesale and retail trade
0.17 0.21 0.57 0.22 0.33 1.6 2.0 5.3 2.1 3.1
Finance 0.06 0.09 0.21 0.06 0.08 1.6 2.2 5.2 1.7 2.3 Social insurance 0.15 0.09 0.14 0.10 0.09 4.3 2.6 3.7 2.9 2.5 Real estate 0.09 0.09 0.13 0.09 0.11 3.3 3.2 4.5 2.8 3.4 General government
0.32 0.26 0.31 0.28 0.25 3.7 2.9 3.2 3.2 2.8
Social services 0.11 0.12 0.18 0.08 0.10 2.8 2.8 4.3 2.1 2.4 Other sectors* 0.04 0.04 0.07 0.03 0.01 3.5 3.6 6.30 2.20 2.5 Total 1.76 2.01 4.21 0.79 2.77
External Demand-Driven Sectors
Extractions 0.08 0.01 0.15 (0.08) 0.13 0.6 0.1 1.0 (0.6) 1.0 Suez Canal 0.35 0.13 0.12 0.38 (0.08) 11.5 3.9 3.6 12.7 (2.5) Tourism (0.25) 0.09 0.75 (0.76) 0.48 (5.9) 2.3 24.7 (19.5) 15.4 Total 0.18 0.23 1.02 (0.46) 0.53 Grand Total 1.94 2.24 5.23 0.33 3.30 1.9 2.2 5.2 0.3 3.3 ∗ Including the sectors of water, sanitation, information and insurance.
Turning to the public and private sectors' contributions to GDP growth (2.2 percent) in the year, the share of the public sector declined to 0.7 point (from 1.1 point). The underperformance was clearly seen in the sectors of Suez Canal, communications, social insurance and the general government. By contrast, the portion of the private sector climbed from 0.8 point to 1.5 point, reflecting a relatively better performance of tourism, manufacturing, and wholesale and retail trade.
- 4-
- GDP and Sectoral Analysis of Output Gap The output gap, which reflects the current business cycle of the Egyptian
economy, was calculated by comparing the estimates of the potential real GDP growth rates* to actual rates (seasonally adjusted). The comparison showed that
* The trend component was calculated by using the quarterly data of both GDP and a set of economic sectors during the period of 2001/02 -2011/12, by applying the approach of Hodrick-Prescott Filter. The cyclical component which reflects the output gap is then derived.
Contribution of the Private Sector to Real GDP Growth(At Factor Cost)
0.390.01
0.110.00
0.160.10
0.210.01
0.200.03
0.090.09
0.11
-0.30 -0.20 -0.10 0.00 0.10 0.20 0.30 0.40 0.50
Agriculture, Irrigation & FishingExtractions
ManufacturingElectricity
Construction & BuildingTransportation & Storage
CommunicationsInformation
Wholesale & Retail TradeFinanceTourism
Real EstateSocial Services
Fiscal Year 2010/2011 (0.82 percentage point) Fiscal Year 2011/2012 (1.51 percentage point)
Contribution of the Public Sector to Real GDP Growth(At Factor Cost)
0.00
0.090.020.020.02
0.010.13
0.010.06
0.010.09
0.260.01
0.00
-0.05 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40
Extractions Manufacturing
ElectricityWater
Construction & Building
Transportation & StorageCommunications
Suez CanalWholesale & Retail Trade
FinanceInsurance
Social InsuranceGeneral Government
Social Services
Fiscal Year 2010/2011(1.12 percentage point) Fiscal Year 2011/2012 (0.73 percentage point)
-5-
the actual GDP growth was roughly equal to the potential GDP growth in April/June 2011/2012 (compared to a negative gap of 3.3 percent in the same period a year earlier and a positive gap of 1.9 percent in January/March 2012).
Actual GDP Growth Rates (seasonally adjusted) and the Output Gap of Main Economic Sectors
Actual Growth Rate %
Output Gap
(Economic Business Cycle) % April/June Jan./ March April/June April/June Jan./ March April/June
Sector 2011/2012 2011/2012 2010/2011 2011/2012 2011/2012 2010/2011
Real GDP Growth 3.2 5.1 0.2 0.0 1.9 -3.3 Communications 4.2 8.9 2.4 -3.5 1.0 -6.3 Construction and building 6.8 10.6 0.0 0.0 3.6 -7.6 Electricity 6.8 9.4 2.5 2.0 4.5 -2.5 Extractions 0.5 1.4 -1.3 -1.0 -0.2 -3.1 Finance 2.3 5.4 1.3 -1.0 2.0 -2.3 Government 2.7 3.2 3.2 -0.8 -0.3 -0.5 Tourism 13.3 21.0 -17.3 10.9 18.6 -20.2 Manufacturing 3.8 5.5 -4.0 1.9 3.5 -6.3 Real estate 3.6 4.6 2.9 0.1 1.1 -0.8 Suez Canal -2.0 3.4 12.1 -5.2 0.2 8.8 Wholesale and retail trade 2.6 5.8 2.0 -0.7 2.5 -1.5 Transportation and storage 3.3 7.4 3.1 -0.7 3.3 -1.2
Source: Based on the Ministry of Planning data.
Real GDP Growth Rate Divided into GDP Trend and GDP Gap (Annual Basis)
3.2
-8.0-6.0-4.0-2.00.02.04.06.08.0
10.0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12
%
GDP Gap - Business Cycle GDP Growth Rate - Seasonally Adjusted Potential GDP-Trend
-6-
Applying the above-mentioned methodology to the different economic
sectors shows that the decline in economic growth in Q4 (April/June 2012), relative to Q3 (January/March 2012) was visible in the lower economic activity of most sectors. The underperformance was clearly seen in tourism (10.9 percent against 18.6 percent) and Suez Canal (-5.2 percent against 0.2 percent). - GDP by Expenditure (at 2006/2007 market prices)
On the demand side, the increase in real GDP growth stemmed basically
from the higher contribution of final consumption to real GDP growth at market prices (4.7 percentage points against 4.3 points) due mainly to the larger portion of private consumption (4.4 points against 3.9 points). In addition, the share of capital formation (including the change in stock) moved up from a negative 0.4 point to a positive 1.5 point. Yet, the bulk of this increase reflected the change in stock during FY 2011/2012 (LE 22.0 billion against LE 9.5 billion). The improvement in real GDP growth could have been larger but for the rise in the negative contribution of net external demand (exports of goods and services less imports of goods and services) to real GDP growth at market prices (a negative 4.0 points against a negative 2.1 points).
Shares of Consumption, Investment and Net Exports in Real GDP Growth (At Market Prices)
-4.3
-0.4
4.3
-4.0
-2.1
-4.4
1.5
3.2
1.0
4.73.7 4.5
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
Fiscal Year2011/2012
Fiscal Year2010/2011
Apr./June2011/2012
Apr./June2010/2011
(Per
cent
age
Poin
t)
Net Exports
Capital Formation
Final Consumption
-7-
Growth Rate and Share of Demand Components in Real GDP at Market Prices
Growth Rate (%)
Shares in GDP Growth (percentage point)
April/June FY April/June FY
2012 2011 2011/12 2010/11 2012 2011 2011/12 2010/11
3.3 0.4 2.2 1.8 3.3 0.4 2.2 1.8 Real GDP Growth 7.3 4.6 6.0 3.8 7.7 4.7 6.2 3.9 1-Domestic Demand 5.4 4.7 5.5 5.3 4.5 3.7 4.7 4.3 A- Final Consumption 5.8 4.8 5.9 5.5 4.1 3.2 4.4 3.9 Private 3.3 4.2 3.1 3.8 0.4 0.5 0.3 0.4 Public
14.0
4.4
8.0
-2.1 3.2 1.0
1.5
-0.4
B- Capital Formation (Including Change in Stock)
13.7 -9.4 0.7 -5.6 2.7 -2.1 0.1 -1.1 of which: Fixed Investment
90.0 816.7 93.0 95.0 -4.4 -4.3 -4.0 -2.1 2- Net External Demand
-5.8 -16.4 -2.3 1.2 -1.4 -4.7 -0.6 0.4 A- Exports of Goods
and Services
10.2 -1.5 10.8 8.4 -3.0 0.4 -3.4 -2.5 B- Imports of Goods
and Services Source: Based on the Ministry of Planning data
Implemented investments (at 2006/2007 prices) increased 0.7 percent
(compared with a 5.6 percent decline a year earlier), to register LE 164.0 billion, due to the pickup in private sector's investments (to LE 105.1 billion from LE 100.7 billion) to account for 64.1 percent of total investments in the reporting year (against 61.8 percent). The key contributors were the sectors of natural gas, oil refining, transportation and storage, and real estate. By contrast, the public sector’s investments edged down from LE 62.1 billion to LE 58.9 billion. Despite that decline, their negative contribution to investment growth moderated from -9.33 points to -1.94 point, thanks to the sectors of crude oil, transportation and storage, finance, and wholesale and retail trade.
-8-
Contribution of the Private Sector to the Real Growth of Investment
-0.40-2.61
6.683.12
-3.48-1.72
1.38-1.36
-0.21
-0.26-0.24-0.10
2.88
-0.73-0.28
-4.00 -2.00 0.00 2.00 4.00 6.00 8.00
Agriculture, Irrigation & Reclamation Crude Oil Natural gas Oil Refining Other Manufacturing Construction & Building Transportation & Storage Communications Information Wholesale & Retail TradeTourism Real Estate Educational Services Health ServicesOther Services
Fiscal Year 2011/2012 (2.67 percentage points)Fiscal Year 2010/2011 (3.69 percentage points)
Contribution of the Public Sector to the Real Growth of Investment
0.151.10
-1.28-0.19
-0.070.55
-0.12
0.020.08
-0.18-0.47
-0.55-1.70
1.26
-0.03
-0.26
0.01
-0.08
-0.04
-0.39
0.070.18
-3.0 -2.5 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0
Agriculture, Irrigation & Reclamation Crude Oil Natural gas Oil Refining Other ManufacturingElectricityW aterSanitation Construction & Building Transportation & Storage Communications InformationSuez Canal W holesale & Retail TradeFinanceInsurance & Social SolidarityTourism Real Estate Educational Services Health ServicesOther ServicesSettlements
Fiscal Year 2011/2012 (-1.94 percentage points)Fiscal Year 2010/2011 (-9.33 percentage points)
-9-
The sectoral distribution of investments in the reporting year ran as follows: 26.7 percent in productive services, 25.5 percent in social services, 24.7 percent in extractions, 11.5 percent in electricity, water, and sanitation, 8.7 percent in manufacturing, 2.2 percent in agriculture, and 0.7 percent in construction and building.
1/2- Labor Force, Employment and Unemployment
According to the quarterly Labor Force Sample Survey (LFSS) released
by CAPMAS in Q4 2011/2012, the size of the labor force rose to 26.89 million persons, up by 52 thousand or 0.2 percent above the end of March 2012, and by 549 thousand or 2.1 percent above the end of June 2011. Moreover, the number of employed mounted to 23.49 million at end of June 2012 (18.84 million males and 4.65 million females), with a rise of 40 thousand persons or 0.2 percent above the end of March 2012, and 262 thousand or 1.1 percent above the end of June 2011. The sector of agriculture and fishing accounted for the lion's share of the total number of employed (26.9 percent).
Unemployment remained stable at 12.6 percent at end of both March and
June 2012, (against 11.8 percent at end of June 2011). In detail, unemployment among males reached 9.2 percent at end of June 2012 (against 9.3 percent at end of March 2012 and 8.7 percent at end of June 2011), and that for females 24.1 percent (against 23.8 percent and 22.5 percent, in order).
8.9% 8.9%
11.9% 11.8% 11.9% 12.6% 12.6%12.4%
-4.0%-2.0%0.0%2.0%4.0%6.0%8.0%
10.0%12.0%14.0%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
Unemployment Labor Force Employment
Labor Force & Employment Indicators (on an annual basis)
Source: CAPMAS
-10-
1/3 - Cotton Hereunder are the main developments witnessed in the cotton crop for the 2011/2012 season on the sides of supply and demand:
Area and Production According to the estimates of the Cotton and Textile Industries Holding
Company, cotton cultivated area reached about 525.4 thousand feddans, up by 40.2 percent compared to the final figures of the previous season. The area cultivated with long-staple varieties constituted about 81.2 percent of the total, whereas extra-long staples constituted 18.8 percent. Though the area of extra-long staples increased, its percentage to the total cultivated area remained scanty.
Area and Production of Cotton Varieties
Area (Thousand Feddans)
Change
Production (Thousand Metric Cantars)
Change
Average Productivity
Cantar/Feddan 2010/11 2011/12 + (-) 2010/11 2011/12 + (-) 2010/11 2011/12
Final Estimate (%) Final Estimate (%) Total: 374.8 100.0 525.4 100.0 40.2 2618.6 100.0 3685.8 100.0 40.8 7.0 7.0 Extra-long staples 70.0 18.7 98.6 18.8 40.9 558.4 21.3 790.8 21.5 41.6 8.0 8.0 Long staples 304.8 81.3 426.8 81.2 40.0 2060.2 78.7 2895.0 78.5 40.5 6.8 6.8
Source: The Cotton and Textile Industries Holding Company. Cotton output totaled about 3.7 million metric cantars in the 2011/2012
season, up by 40.8 percent above the level of the previous season. Such a rise was attributed to the increase in the area cultivated with long staples by 122 thousand feddans, or 40 percent to 0.4 million feddans, and the area cultivated with extra-long staples by 28.6 thousand or 40.9 percent to 98.6 thousand feddans in 2011/12 season. Moreover, the average productivity remained unchanged at 7.0 metric cantars/feddan in the seasons of 2010/11 and 2011/12.
Stock, Total Supply and Domestic Consumption
During the season in question, total supply of raw cotton amounted to
some 4.0 million metric cantars, with a pickup of 39.3 percent compared with the previous season. The rise was attributed to the higher output of extra-long staples by 41.6 percent to 0.8 million metric cantars against 0.6 million metric cantars. Moreover, the output of long and medium-long staples rose by 0.8 million metric cantars, or 40.5 percent. In addition, the opening stock rose by 23.3 percent to 0.3 million metric cantars.
-11-
Total Supply and Uses (thousand metric cantars)
Season 2010/11 2011/12 Change + (-) Final Estimated % Total Supply 2848.2 3968.9 39.3 Opening stock 229.6 283.1 23.3 Production (Crop) 2618.6 3685.8 40.8 Total Uses 2873.2 2814.9 (2.0) Domestic Consumption 662.2 1249.9 88.7 Export Commitments* 2211.0 1565.0 (29.2)
Source: Ibid. * Up to the end of 30/6.
Domestic consumption grew by nearly 0.6 million metric cantars or 88.7
percent, as the amount of raw cotton supplied to local mills in 2011/2012 mounted to 1.2 million metric cantars, against 0.7 million metric cantars in the previous season.
Chart
Egyptian Cotton Position
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Opening stock Crop DomesticConsumption
Export Commitments
Milli
on M
etric
Can
tars
2010/2011 2011/2012
-12-
Export Commitments∗ According to the Cotton and Textile Industries Holding Company, total
export commitments, since the beginning of the season up to the end of June 2012, declined by 29.2 percent to reach 1.6 million metric cantars (against 2.2 million metric cantars in the previous season and up to the end of June 2011). Those commitments consisted of 489.5 thousand metric cantars of extra-long staple varieties (31.3 percent), and 1075.5 thousand metric cantars of long staple varieties (68.7 percent).
The private sector companies accounted for the bulk of total commitments
(85.2 percent), while the public sector provided the remaining 14.8 percent.
Export Commitments (Preliminary) by Variety and Exporting Companies
(thousand metric cantars)
2010/2011 (1/9/2010 - 30/6/2011)
2011/2012 (1/9/2011 - 30/6/2012)
Season
Quantity
Relative Importance
(%) Quantity
Relative Importance
(%) 1-Variety Extra-long staples 572.1 25.9 489.5 31.3 Long staples 1638.6 74.1 1075.5 68.7 Total 2210.7 100.0 1565.0 100.0 2-Exporting Companies Public business sector companies 423.5 19.2 232.1 14.8 Private sector companies 1787.2 80.8 1332.9 85.2 Total 2210.7 100.0 1565.0 100.0
As for export commitments by importer, the Asian countries (mainly
China, Pakistan and India) came in the forefront, accounting for 72.9 percent of the total. The other European countries (mainly Turkey and Switzerland) came second with 7.0 percent, followed by the EU countries (particularly Italy and Germany) with 3.7 percent of the total. The Arab countries, headed by the UAE and Bahrain, made commitments of 28 thousand metric cantars or 1.8 percent of the total. Moreover, the USA made commitments of 27 thousand metric cantars or 1.7 percent of the total. _____________________ * Up to the end of June.
-13-
Export Commitments by Importer
(%) As of the Beginning of the Season (Up to End of June) 2009/2010 2010/2011 2011/2012 Total (million metric cantars) 1506.3 2210.7 1565.0 Asian countries; of which 77.5 61.7 72.9 India 36.3 25.2 15.9 Pakistan 12.6 9.4 19.5 China 21.9 19.1 22.9 EU countries; of which 4.3 7.3 3.7 Italy 2.8 2.8 1.5 Germany 0.9 3.8 0.7 Other European countries; of which 10.6 14.3 7.0 Switzerland 4.6 9.5 2.0 Turkey 6.0 4.8 5.0 USA - 2.4 1.7 Arab countries 2.8 4.6 1.8 UAE 0.3 0.1 0.4 Bahrain 0.5 0.7 0.4 Others 4.8 9.7 12.9 Source: Ibid.
International Developments According to the estimates of the International Cotton Advisory Committee (ICAC) for the 2011/2012 season, compared with the preceding season, the opening stock of raw cotton rose by 7.3 percent to 42.9 million bales and world cotton production by 8.2 percent to 124.8 million bales. Consequently, total world supply of cotton increased by 8.0 percent to 167.7 million bales. In addition, the ICAC forecasted a drop of 4.4 percent in world consumption, to 107.6 million bales. Hence, the carryover at the end of the season is expected to increase by 40.7 percent to 60.1 million bales.
Position of World Cotton (million bales*)
Season 2010/2011 2011/2012 Final Estimate
Change + (-) %
Opening stock 40.0 42.9 7.3 World production 115.3 124.8 8.2 Total Supply 155.3 167.7 8.0 World consumption 112.6 107.6 (4.4) Carryover at the end of the season 42.7 60.1 40.7 Source: The Egyptian Cotton Gazette. • World bale = 4.6 cantars.
-14- 1/4 - Suez Canal
Suez Canal receipts increased by 3.1 percent, to record US$ 5.2 billion
(against US$ 5.1 billion). The increase was mainly attributed to the 4.6 percent rise in net tonnage despite the decline of 2.1 percent in the number of transiting ships.
Chart
The rise in net tonnage, during FY 2011/12, by 41.6 million tons or 4.6
percent to 938.5 million tons was attributed to the increase in net tonnage of oil tankers by 16.6 percent.
The following two charts illustrate the development in Suez Canal
receipts and the development of net tonnage on a quarterly basis during FY 2011/12 as compared with the previous FY.
Suez Canal Revenues
5.2
4.2
5.2
4.74.5
5.1
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
(US$ bn)
-15-
Transiting ships declined during FY 2011/12 by 386 in number to
register around 17664. The drop was a dual effect of the retreat in the number of transiting ships (other than oil tankers) by 436, to 14048 ships or 79.5 percent of the total, and the pickup in the number of oil tankers by 50 to 3616 ships.
Traffic in Suez Canal 2010/11 2011/2012 Change (%) Total Number 18050 17664 -2.1 Net tonnage Million tons 896.9 938.5 4.6 Average tonnage
Thousand tons 49.7 53.1 6.9
Oil Tankers Number 3566 3616 1.4 Net tonnage Million tons 112.7 131.4 16.6 Average tonnage
Thousand tons 31.6 36.3 15.0
Other Ships Number 14484 14048 -3.0 Net tonnage Million tons 784.2 807.1 2.9 Average tonnage Thousand tons 54.1 57.5 6.1 Source: Suez Canal Authority
The volume of cargo transiting the Canal (by destination) during FY 2011/12 increased by 60.5 million tons or 9.1 percent to 727.6 million tons (against 667.1 million tons a year earlier). The increase stemmed mainly from the rise in the southbound cargo by 50.0 million tons or 15.6 percent, and in northbound cargo by 10.5 million tons or 3.0 percent (mainly petroleum products).
Total Tonnage(Net)
232.3
217.9
223.7223.0
231.6228.2
239.3239.4
205.0
210.0
215.0
220.0
225.0
230.0
235.0
240.0
245.0
Q1 Q2 Q3 Q4
(million tons)
2010/2011 2011/2012
Suez Canal Receipts
1254.1 1253.7
1229.6
1315.5
1360.4
1323.0
1245.5
1278.9
1150.0
1200.0
1250.0
1300.0
1350.0
1400.0
Q1 Q2 Q3 Q4
(US$ mn)
2010/2011 2011/2012
-16-
Transiting Cargo by Destination
(million tons) 2010/11 2011/12 Change Change (%) Total 667.1 727.6 60.5 9.1 Southbound: 319.6 369.6 50.0 15.6 Petroleum products 39.3 52.8 13.5 34.4 Cereals 15.7 25.0 9.3 59.2 Mineral fertilizers 10.3 12.9 2.6 25.2 Fabricated metals 16.9 16.7 -0.2 -1.2 Chemicals 8.8 10.1 1.3 14.8 Coal 1.8 2.3 0.5 27.8 Machinery & parts thereof 2.7 3.5 0.8 29.6 Ores and metals 26.6 28.8 2.2 8.3 Others 197.5 217.5 20.0 10.1 Northbound: 347.5 358.0 10.5 3.0 Petroleum products 56.7 71.2 14.5 25.6 Cereals 0.4 0.5 0.1 25.0 Fertilizers 1.7 3.5 1.8 105.9 Fabricated metals 5.7 5.0 -0.7 -12.3 Chemicals 11.2 10.1 -1.1 -9.8 Coal 12.4 8.7 -3.7 -29.8 Machinery & parts thereof 3.5 3.9 0.4 11.4 Ores and metals 3.2 4.4 1.2 37.5 Others 252.7 250.7 -2.0 -0.8 Source: Suez Canal Authority 1/5- Tourism
According to the statistics of the Ministry of Tourism, the number of
arrivals decreased by 8.2 percent during the year, recording about 11.0 million tourists (against 11.9 million tourists). However, tourist nights by departure rose by 5.8 percent to 131.8 million (against 124.6 million nights). Also, the average stay during the year mounted to about 12.0 nights (against 10.4 nights).
Number of Tourists and Tourist Nights
10.410.610.811.011.211.411.611.812.0
2010/2011 2011/2012
Mill
ion
Tour
ists
120.0122.0124.0126.0128.0130.0132.0134.0
Mill
ion
Nig
hts
Number of Tourists Number of Tourist Nights
-17-
As a consequence, tourism revenues decreased during the year by 12.5 percent to US$ 9.42 billion (against US$ 10.59 billion). The above downturn was brought about by the drop in the average spending per tourist a night to US$ 72.2 during Q1 of the year (July/September 2011), and further to US$ 69.6 in Oct. 2011/ June 2012 of the same FY (compared with US$ 85 per night during FY 2010/2011).
Tourism revenues contributed 3.7 percent of GDP at current market prices
(against 4.5 percent in the year of comparison); and about 14.2 percent of total visible and invisible receipts and transfers during FY 2011/2012 (against 17.1 percent).
Investments in the tourism sector amounted to some LE 5.6 billion during
FY 2011/2012 (against LE 5.7 billion in the preceding year), constituting 2.4 percent of total investments implemented during the year (against 2.5 percent). The private sector invested LE 5.0 billion or 89.8 percent of the total (against 93.5 percent).
Tourism Indicators 2010/2011 2011/2012 Change + (-)
% Number of arrivals (000s) 11931 10953 -8.2 Number of tourist nights by departure (000s) 124571 131769 5.8 Tourism revenues* (US$ billion) 10.59 9.42 -11.0 Average tourist stay (night) 10.4 12.0 14.3 GDP at current prices (LE billion) 1371.0 1542.3 12.5 GDP at current prices (US$ billion) 235.5 256.7 9.0 Average exchange rate during the year 5.822 6.008 3.2
Source: CBE, Ministries of Tourism and Planning. * The average spending per tourist a night in FY 2010/2011 was US$ 85, but dropped to US$ 72.2 in July/Sept.
2011, and further to US$ 69.6 in Oct. 2011/June 2012.
Tourism Revenues (FY)
0.0
5.0
10.0
15.0
20.0
2010/2011 2011/2012
٪
0.0
2.0
4.0
6.0
8.0
10.0
12.0
US$bn
Tourism Revenues/GDP (%) Tourism Revenues/Total Current ReceiptsTourism Revenues
-18-
1- Number of Arrivals:
Total arrivals from all tourist markets amounted to 11.0 million tourists, with a decrease of about 1.0 million or 8.2 percent in comparison with the previous FY.
The European group remained in the forefront, with a relative weight of
74.0 percent of total tourist flows, despite the decrease in the number of arrivals therefrom by 0.7 million or 7.8 percent. However, an increase was noticed in arrivals from Russia (2.3 million or 12.2 percent), in contrast to decreases in tourists from France by 25.1 percent, UK by 23.1 percent, Italy by 20.1 percent, and Germany by 0.8 percent.
The Middle East group occupied the second position, accounting for
15.9 percent of the total tourist flows, as the number of tourists from this group went up by 103 thousand or 6.3 percent. Libya continued to rank first with a share of 560 thousand visitors, up by 11.0 percent compared with the previous FY. Palestine came next with 309 thousand tourists, thus recording the highest growth rate in this group (58.6 percent). Saudi Arabia retreated to the third position, as arrivals therefrom declined by 29.3 percent to only 216 thousand.
Ranking third, the African group contributed 3.9 percent of the total
number of tourists, with a decrease of 48.0 thousand or 10.0 percent. Sudan accounted for 48.4 percent of the total number of tourists in this group (210.0 thousand), with a rise of 8.7 percent. Also, arrivals from Nigeria slightly rose by 0.4 percent, to 52.9 thousand, and from Algeria by 2.1 percent to 24.3 thousand. In contrast, arrivals from Morocco dropped by 21.0 percent and from Tunisia by 28.6 percent.
Main Countries of the European Group
0 200 400 600 800 1000 1200 1400 1600 1800 2000 2200 2400
Russia
Germany
Britain
Italy
Poland
France
Ukraine
Thousand
2011/2012
2010/2011
Main Countries of the Middle East Group
0 50 100 150 200 250 300 350 400 450 500 550 600
Libya
Palestine
Saudi Arabia
Jordan
Syria
Thousand
2011/2012
2010/2011
-19-
Number of Tourist Arrivals
2010/2011 2011/2012 Change No.
(000s)Relative Weight
No. (000s)
Relative Weight
Value + (-) %
Total 11931 100.0 10953 100.0 -978 -8.2 Europe 8791 73.7 8101 74.0 -690 -7.8 Middle East 1636 13.7 1739 15.9 103 6.3 Africa 482 4.0 434 3.9 -48 -10.0 The Americas 436 3.7 283 2.5 -153 -35.1 Asia and the Pacific 560 4.7 374 3.4 -186 -33.2 Others 26 0.2 22 0.2 -4 -15.4
Coming fourth in order, the Asian and Pacific group contributed 3.4
percent of total tourists, with a decrease of 33.2 percent to 374.0 thousand. The sharpest decrease was registered by Australia (42.5 percent), with a share of 32.5 tourists or 8.7 percent of the total. China followed, with a decline of 31.4 percent to 51.7 thousand, sharing with 13.8 percent of the total. Arrivals from Philippines dropped by 27.0 percent to 42.7 thousand, contributing 11.4 percent of the total number of this group.
Arrivals from the Americas
group came last, accounting for 2.6 percent of the total number of arrivals. Thus, this group registered the highest decline among the regional groups (35.1 percent). USA exported the majority of tourists from this group (63.5 percent), though their number retreated by 35.2 percent to only 179.8 thousand. Canadian tourists made up 18.0 percent (50.9 thousand), down by 32.2 percent. 2- Tourist Nights by Departure:
In spite of the decrease in the number of tourists during the year under review, the number of nights spent by all departure groups mounted to some 131.8 million nights, up by 7.2 million nights or 5.8 percent above the level of the previous FY.
Relativ e Weight of the Number of Tourists by Group (FY)
2010
/2011
2011
/2012
European
Middle East
African
American
Asian
Other
-20-
Number of Tourist Nights by Departures
2010/2011 2011/2012 Change
No. (000s)
Relative Weight
No. (000s)
Relative Weight
Value + (-)
%
Total 124571 100.0 131769 100.0 7197 5.8Europe 83934 67.4 86805 65.9 2871 3.4Middle East 23737 19.0 30121 22.9 6384 26.9Africa 5920 4.8 6288 4.8 369 6.2The Americas 5581 4.5 4337 3.3 -1244 -22.3Asia and the Pacific 5136 4.1 3893 2.9 -1243 -24.2Others 263 0.2 324 0.2 61 23.2
The European group came in the lead, accounting for 65.9 percent of the
total in FY 2011/2012, as the number of nights spent by departures went up by 2.9 million nights or 3.4 percent to 86.8 million nights (against 83.9 million nights during the preceding FY). Coming on top of this group with a share of 19.3 million nights, Russia recorded a rise of 12.8 percent, followed by Germany (14.0 million nights, up by 8.5 percent).
Ranking second, the Middle East group shared with 22.9 percent of the
total, with a rise of 26.9 percent in tourist nights, to 30.1 million nights (against 23.7 million nights), attributed to the pickup in tourist nights by departure of most countries in this group. On top of these countries came Libya and Palestine with increases of 26.9 percent and 74.0 percent, in order. As for Saudi Arabia, tourist nights by departure retreated by 4.1 percent.
The African countries came third with a share of 4.8 percent of the total,
and an increase of 6.2 percent in the number of tourist nights, to 6.3 million nights. In the forefront of these countries came Sudan with a contribution of 4.3 million nights and a rise of 25.0 percent, followed by Nigeria with 0.4 million nights (up by 26.7 percent).
The Americas group occupied the fourth position, contributing 3.3
percent of total tourist nights, with a decrease of 22.3 percent in their number, to only 4.3 million nights. Coming on top of this group, the USA contributed around 2.8 million nights, despite a drop of 25.0 percent. Canada followed with only 0.9 million nights, down by 20.4 percent.
Relative Weight of the Number of Tourist Nights by Group (FY)
2010
/2011
2011
/2012
European
Middle East
Af rican
American
Asian
Other
-21- Accounting for 2.9 percent, the Asian and Pacific countries came last,
with 3.9 million nights and a decline of 24.2 percent. This is ascribed to decrease in tourist nights spent by arrivals from Australia and Philippines by 33.2 percent and 29.1 percent, to 0.5 million and 0.3 million, respect-tively.
The top ten markets
exporting tourism to Egypt ac-counted for 66.3 percent of the total number of visitors (7.3 million tourists), against 63.9 percent (7.6 million tourists). As for tourist nights, they shared with 63.2 percent of total tourist nights (83.2 million nights), against 62.6 percent (78.0 million nights), as shown in the following two tables.
The Top Ten Markets
(Tourist Arrivals) (Thousand)
2010/2011 2011/2012 Country Number % Country Number % Russia 2033 17.0 Russia 2281 20.8 The UK 1294 10.9 Germany 1100 10.0 Germany 1109 9.3 The UK 995 9.1 Italy 820 6.9 Italy 655 6.0 Libya 505 4.2 Libya 560 5.1 Poland 469 3.9 Poland 465 4.3 France 463 3.9 France 347 3.2 Ukraine 351 2.9 Ukraine 320 2.9 Saudi Arabia 305 2.6 Palestine 309 2.8 USA 278 2.3 Netherlands 233 2.1 Total 7627 63.9 Total 7265 66.3 General Total 11931 100.0 General Total 10953 100.0
-22-
The Top Ten Markets (Tourist Nights by Departure)
(Thousand) 2010/2011 2011/2012
Country Number % Country Number % Russia 17098 13.7 Russia 19284 14.6 The UK 13483 10.8 Germany 13964 10.6 Germany 12873 10.3 The UK 12003 9.1 Italy 7570 6.1 Libya 9256 7.0 Libya 7294 5.9 Italy 7382 5.6 Saudi Arabia 4550 3.7 Palestine 4848 3.7 France 4137 3.3 Saudi Arabia 4365 3.3 Poland 3815 3.1 Sudan 4305 3.3 USA 3770 3.0 Poland 4216 3.2 Sudan 3445 2.8 France 3618 2.8 Total 78035 62.6 Total 83241 63.2 General Total 124572 100.0 General Total 131769 100.0
1/6- Inflation A- Consumer Price Index (CPI)
In FY 2011/2012, the annual headline CPI inflation (urban) moderated to 7.3 percent in June 2012 from 11.8 percent in June 2011 on the back of the lower prices of food and non-alcoholic beverages, whose share in headline inflation declined from 7.8 percentage points to 4.1 points. Decreases were also observed in tobacco and narcotics (0.6 point against 1.5 point), education (0.5 point against 1.1 point), restaurants and hotels (0.2 point against 0.5 point), and healthcare, communications and miscellaneous goods by 0.1 point each.
Source: CAPMAS.
Annual CPI and Price Index of Food and Non-alcoholic Beverages (Urban)
10.1
10.4
10.9
11.0
11.0
10.2
10.3
10.8
10.7 11.5
12.1
11.8
11.8
10.4
8.5
8.2
7.1 9.
1 9.6
8.6 9.2
9.0
8.8
8.3
7.3
0
4
8
12
16
20
24
Jun-10 Aug Oct
Dec Feb Apr
Jun-11 Aug Oct
Dec Feb Apr
Jun-12
%
All Items Food and Non-alcoholic Beverages
-23- On the other hand, increases were manifest in the groups of housing,
electricity and fuel (1.2 point against 0.2 point), furnishings (0.3 point against 0.1 point) and clothing by 0.1 point. Moreover, transportation remained unchanged at 0.1 point.
The drop in the group of food and non-alcoholic beverages resulted from the lower contributions of the following subgroups: bread and cereals (-0.1 point against 1.8 point), vegetables (1.4 point against 2.3 points), fruit (-0.1 point against 0.6 point), and oil and fats (0.1 point against 0.6 point). Conversely, the share of meat and poultry inched up (1.7 point against 1.4 point), and so did fish (0.5 point against 0.2 point).
The following table illustrates the shares of CPI groups in headline inflation in the reporting year and the year of comparison:
Contribution of Main Items of Food to Headline Inflation (Annually)
-0.30.00.30.6
0.91.21.51.8
2.12.42.7
Bread &Cereals
Meat &Poultry
Fish Milk, Cheeseand eggs
Oil & Fats Fruit Vegetables Sugar
Percentage point
2010/20112011/2012
-24-
(Jan. 2010=100)
Inflation in FY (%)
Share in Headline Inflation in FY
(Percentage Point)
Main CPI Groups
2010/11 2011/12 2010/11 2011/12 General Index 11.8 7.3 11.8 7.3 Food & non-alcoholic beverages 19.0 9.2 7.8 4.1 Alcoholic beverages, tobacco and narcotics 69.9 18.8 1.5 0.6 Clothing and footwear 2.2 4.5 0.1 0.2 Housing, water, electricity, gas & fuel 1.1 7.2 0.2 1.2 Furnishings, household equipment and routine maintenance 2.5 8.8 0.1 0.3 Healthcare 1.9 0.1 0.1 0.0 Transportation 1.1 2.8 0.1 0.1 Communications 0.1 4.5- 0.0 -0.1 Culture & recreation 5.9 8.6 0.2 0.2 Education 24.3 9.9 1.1 0.5 Restaurants & hotels 12.1 3.6 0.5 0.2 Miscellaneous goods & services 2.4 1.3 0.1 0.0
According to the CPI (urban), headline inflation (m/m) decelerated to 0.6
percent on average in the reporting year (from 0.9 percent a year earlier) to reach its lowest level in June 2012 (-0.6 percent). This was an effect of the 1.3 percent drop in the prices of food and non-alcoholic beverages during the said month.
Monthly Inflation Rate According to CPI (Urban)
-1.0-0.50.00.51.01.52.02.53.03.5
Jun-10 Aug Oct
Dec Feb Apr
Jun-11 Aug Oct
Dec Feb Apr
Jun-12
%
-25- B- Producer Price Index (PPI)
Following the same downtrend of the CPI, annual headline PPI inflation
fell to -3.7 percent in FY 2011/12, compared with 19.4 percent in the previous FY.
The decline in PPI inflation was primarily due to the fall in the
contribution of agriculture and fishing (-2.3 points against 7.9 points) affected by the lower shares of most sub-groups especially vegetables (-2.8 points against 2.1 points), cereals and leguminous crops (0.3 point against 1.7 point), fruit (-0.3 point against 1.4 point), and rice (-0.2 point against 0.8 point).
The share of mining and quarrying also declined (-2.3 points against 7.3
points). The decline was largely seen in crude oil (-3.8 points against 11.2 points) as the inflation rate of this group noticeably fell from 48.2 percent to -13.3 percent.
The following table shows the inflation rates and shares of the PPI groups
in headline inflation during the reporting year and the year of comparison.
Annual Inflation Rate According to PPI (2004/2005 = 100)
-10
-5
0
5
10
15
20
25
Jun-11 Ju
lAug
Sep OctNov
Dec Jan
Feb Mar AprMay
Jun-12
%
-26-
Share of PPI Groups in Headline Inflation (2004/2005= 100)
Inflation (%)
July/June
Share in Headline Inflation (Percentage Point)
July/June
Main PPI Groups
2010/11 2011/12 2010/11 2011/12
General Index 19.4 -3.7 19.4 -3.7 1-Agriculture, Irrigation and Fishing, of which: 23.9 -6.7 7.9 -2.3
Cereals and leguminous crops 44.6 6.5 1.7 0.3 Rice 75.0 13.1- 0.8 -0.2 Vegetables 30.1 -37.2 2.1 -2.8 Fruit 21.4 -4.7 1.4 -0.3 Cotton 87.4 -20.4 0.5 -0.2 Poultry and eggs 1.6 5.3 0.1 0.2 Fish 2.0 14.1 0.0 0.3 2-Mining and Quarrying, of which:
36.3 -10.1 7.3 -2.3
Crude oil 48.2 -13.3 11.2 -3.8 Sand and stone 8.9 -0.7 0.0 -0.1 3-Manufacturing, of which:
10.3 1.9 3.7 0.6
Processed food products, of which:
12.8 4.0 1.1 0.3
Oils and fats 21.1 2.2 0.3 0.0 Dairy products 8.9 4.4 0.1 0.0
Fertilizers 7.4 -3.6 0.1 0.0 Wood & products 35.4 9.3 0.0 0.1 Cement 1.4 -3.1 0.0 0.0 Iron and steel 24.2 -7.9 1.1 -0.4 4-Electricity and Gas, of which:
0.0 0.0 0.0 0.0
Electric power generation, transmission and distribution 0.0 0.0 0.0 0.0 5-Water Supply Activities 0.0 7.4 0.0 0.1 6-Transportation and Storage, of which: 2.0 3.0 0.0 0.1
Land transportation 0.0 0.0 0.0 0.0 7- Accommodation and
Food Services, of which:
13.1 3.4 0.5 0.1
Meal serving services in limited service facilities 17.0 0.0 0.1 0.0 8-Information and Communications
0.0 0.0 0.0 0.0
Source: CAPMAS
-27-
2- Monetary and Banking Developments 2/1- Monetary and Banking Policy and Monetary Aggregates
2/1/1- Monetary Policy By embracing price stability as the ultimate objective of the monetary policy, the CBE seeks to bring inflation to an appropriate and stable level that helps in building confidence and stimulating investments to achieve the targeted economic growth.
The overnight interbank interest rate is considered the operational target of the monetary policy, whereby a framework based on the corridor system is applied, within which the ceiling is the overnight interest rate on lending from the Central Bank, and the floor is the overnight deposit interest rate at the Bank.
The following are the results of the MPC meetings held in FY 2011/2012:
• During July/Oct. 2011/2012, the MPC decided in its regular meetings (three meetings in number) to keep the CBE key interest rates (overnight deposit and lending rates) and the discount rate unchanged at 8.25 percent, 9.75 percent and 8.50 percent per annum, in order. Also, the 7-day repo underwent no change (9.25 percent per annum).
• In its meeting on November 24, 2011, the MPC decided to raise the
overnight deposit rate by 100 bps to 9.25 percent and the overnight lending rate by 50 bps to 10.25 percent per annum. Accordingly, the margin between the corridor’s ceiling and floor narrowed from 1.5 percent to 1 percent. The CBE discount rate was also raised by 100 bps to 9.50 percent per annum and the 7-day repo by 50 bps to 9.75 percent.
• In the four meetings held during February/June 2012, the CBE key
interest rates, the discount rate and the 7-day repo rate underwent no change. Also, no change had been made to the said rates in the MPC meeting on 26 July 2012; the time of preparing the Review at hand.
• Furthermore, as part of its monetary policy framework, the MPC decided
on 14 June 2012 to introduce a 28-day repurchasing agreement (repo) starting July 10, 2012, at variable rate tenders, with a minimum bid equal to the 7-day repo rate.
-28- • In light of the liquidity situation in the domestic market amid the current
domestic and global developments, the CBE Board of Directors decided on 20 March and 22 May 2012 to reduce the required reserve ratio (RRR) from 14 percent to 12 percent and then to 10 percent. This provided the banking system with further liquidity with the aim of easing credit conditions in the market.
The following table shows the CBE’s key interest rates, according to the
MPC’s decisions taken in the eight meetings held during FY 2011/2012: Overnight
Deposit Rate Overnight
Lending Rate Discount Rate
9 June 2011 8.25% 9.75% 8.50% 21 July 2011 Unchanged Unchanged Unchanged 25 August 2011 Unchanged Unchanged Unchanged 13 October 2011 Unchanged Unchanged Unchanged 24 Nov. 2011 9.25% 10.25% 9.50% 2 Feb. 2012 Unchanged Unchanged Unchanged 22 March 2012 Unchanged Unchanged Unchanged 3 May 2012 Unchanged Unchanged Unchanged 14 June 2012 Unchanged Unchanged Unchanged
Developments in Interest Rates
The decisions taken in FY 2011/2012 were reflected in the interest rates in the money market (whether on overnight interbank transactions or on local currency deposits and loans). This can be seen as follows:
1-Overnight Interbank Interest Rate
Given the continuous drop in the volume of liquidity at the banking system, the weighted average of the overnight interbank interest rate increased hovering around the middle of the corridor. (see the following chart)
-29-
2- Interest Rates on LE Deposits and Loans
The MPC's decisions affected the market interest rates on deposits and
loans. Hence, the weighted average of the interest rate on three-month, six-month and one-year deposits posted 7.7 percent, 7.6 percent and 8.4 percent, respectively, in June 2012 (against 6.6 percent, 6.9 percent and 7.4 percent in June 2011). In addition, the weighted average of the market interest rate on one-year loans rose to 11.9 percent+ in June 2012 (from 11.0 percent in June 2011).
Open Market Operations
Reacting to the political changes in Egypt in the wake of the January 25th revolution, which cast their shadow over the level of economic activity and the performance of financial markets, and eventually over the available liquidity in the market, the CBE conducted the 7-day repo operations to provide adequate liquidity for banks that may face potential pressures on their liquidity position.
Hence, the average value of the repo operations conducted by the CBE in June 2012 posted LE 33.1 billion (against LE 8.2 billion in June 2011).
+ The interest rate on corporate loans after the application of the DMMS.
Overnight Interbank Rate and Policy Rates
7.508.008.509.009.50
10.0010.5011.0011.5012.0012.5013.0013.5014.00
Jun-08
Sep-08
Dec-08
Mar-09
Jun-09
Sep-09
Dec-09
Mar-10
Jun-10
Sep-10
Dec-10
Mar-11
Jun-11
Sep-11
Dec-11
Mar-12
Jun-12
( % )
Overnight interbank Deposit facility rate Lending facility rate
-30-
2/1/2- Reserve Money
Reserve money reached LE 263.7 billion at the end of June 2012, up by LE 12.7 billion or 5.1 percent in FY 2011/2012 (against LE 47.9 billion or 23.6 percent in the previous FY). The increase in reserve money reflects the growth in money in circulation outside the CBE, which was offset by the fall in banks’ deposits in local currency at the CBE.
Reserve Money and Counterpart Assets*
(LE mn) Change during the FY +(-)
2010/2011 2011/2012 Balances at the
End of June 2012 Value Value
A- Reserve Money 263668 47921 12676 -Currency in circulation outside the CBE
204870 34843 25774
-Banks’ deposits in local currency
58798 13078 (13098)
B- Counterpart Assets 263668 47921 12676 Net Foreign Assets 76059 (43037) (71138) Foreign assets 92168 (42274) (64163) Foreign liabilities 16109 763 6975 Net Domestic Assets 187609 90958 83814 Claims on the government (net)
165374 21951 62812
Claims on banks (net) -2706 (28863) (2853) Net balancing items 24941 97870 23855
*Derived from the CBE’s balance sheet.
It is to be noted that the currency in circulation outside the CBE (the main component of reserve money) recorded an increase of LE 25.8 billion or 14.4 percent in the reporting year (against LE 34.8 billion or 24.2 percent a year earlier) reaching LE 204.9 billion or 77.7 percent of reserve money at the end of June 2012. This pickup was ascribed to the rise in banknote issue by LE 27.7 billion to LE 207.5 billion at the end of June 2012.
As for the components of the issue cover at the end of June 2012, the
Egyptian government bonds made up LE 178.8 billion or 86.2 percent, gold LE 20.0 billion or 9.6 percent and foreign currencies the equivalent of LE 8.7 billion or 4.2 percent.
-31-
Banknote Issue* (LE mn)
Change during the Year End of June Balance of Banknote Issue Value %
2008 112705 19206 20.5 2009 127912 15207 13.5 2010 146220 18308 14.3 2011 180118 33898 23.2 2012 207824 27706 15.4
*Including subsidiary coins issued by the Ministry of Finance.
It is worth mentioning that gold is revaluated on an annual basis. At the end of the fiscal year, revaluation was made on the following bases: 85 percent of the average price of gold per ounce on London market at the end of the fiscal year or 85 percent of the average price of gold per ounce on London market in the last three months of the fiscal year (April-May-June), whichever is less. This came in the wake of the Decision issued by the CBE’s Board of Directors dated 2 July 2012. According to the Decision, the percentage for revaluating gold deposits in the issue cover was amended from 75 percent to 85 percent, but all other rules of revaluation were kept intact.
The breakdown of the currency in circulation outside the CBE showed an increase in the relative importance of large denominations (LE 200, LE 100 and LE 50) to 93.2 percent of total currency in circulation at the end of June 2012 (against 90.5 percent at the end of June 2011). The increase was due to the rise in the relative importance of LE 200 denomination from 37.2 percent to 42.6 percent.
Currency in Circulation by Denomination* (LE mn)
June 2011 June 2012 Change during the FY (+ -)
Denomination
Value Relative Importance
Value Relative Importance
2010/2011
2011/2012
Total 179096 100.0 204870 100.0 24.2 14.4 Banknote in Circulation 178772 99.8 204518 99.8 24.2 14.4 PT 25 161 0.1 147 0.1 (12.5) (8.7) PT 50 302 0.2 296 0.1 3.5 (2.0) LE 1 907 0.5 888 0.4 7.6 (2.1) LE 5 2654 1.5 1897 0.9 77.5 (28.5) LE 10 2886 1.6 2797 1.4 1.5 (3.1) LE 20 9672 5.4 7527 3.7 76.5 (22.2) LE 50 22246 12.4 20629 10.1 18.9 (7.3) LE 100 73269 40.9 82961 40.5 6.7 13.2 LE 200** 66675 37.2 87377 42.6 46.7 31.0 Subsidiary coins
324 0.2 351 0.2 5.9 8.3
* Representing the difference between banknote issue and cash at the CBE. ** The LE 200 note has been in circulation since May 2007.
-32-
Banks’ local currency deposits at the CBE (the second component of reserve money) declined by LE 13.1 billion or 18.2 percent in 2011/2012 (against an increase of LE 13.1 billion and 22.2 percent a year earlier) ending the year at LE 58.8 billion.
It is to be noted that the CBE’s Board of Directors had issued two decisions dated 20 March and 22 May 2012 to reduce the required reserve ratio (RRR) from 14 percent to 12 percent and from 12 percent to 10 percent. The decisions aimed at providing the banking system with further liquidity to ease the credit conditions in the market.
The increase in the counterpart assets of reserve money in the
reporting year was primarily attributed to the pickup in net domestic assets, which was held back by the decline in net foreign assets. Net domestic assets made a positive contribution to reserve money growth (33.4 percentage points), while the latter made a negative contribution (28.3 points).
In figures, net domestic assets surged by LE 83.8 billion (against a rise of LE 91.0 billion), reaching LE 187.6 billion at end of June 2012. The increase was a confluence of a number of developments namely the rise in net claims on the government, the pickup in net balancing items and the decrease in net claims on banks. To elaborate, the CBE’s net claims on the government mounted by LE 62.8 billion. This was due to the pickup in its claims on the government by LE 67.0 billion or 35.3 percent (as securities rose by LE 48.2 billion and loans to the government by LE 18.8 billion) and the increase in government deposits at the CBE by LE 4.2 billion or 4.8 percent. Moreover, net balancing items went up by LE 23.9 billion. This was mainly ascribed to the rise in the balance of open market operations by LE 18.5 billion thanks to the increase in the balance of repos by LE 19.3 billion. On the other hand, the CBE’s net claims on banks decreased by LE 2.9 billion. The decrease was a dual effect of the decline in its claims on banks by LE 1.2 billion (because of its lower foreign currency deposits at banks) and the step-up in banks’ foreign currency deposits at the CBE by LE 1.7 billion worth.
Net foreign assets at the CBE (expressed in LE) rolled back by LE 71.1
billion or 48.3 percent (against a retreat of LE 43.0 billion or 22.6 percent), posting LE 76.1 billion at the end of June 2012. Specifically, foreign assets at the CBE decelerated by LE 64.1 billion or 41.0 percent (against a decrease of LE 42.3 billion or 21.3 percent), reaching LE 92.2 billion at end of June 2012. The decline was mainly traced to the need to finance some basic commodity imports, taking into account the retreat in foreign currency earnings (particularly from tourism and foreign direct investment).
-33- On the other hand, foreign liabilities at the CBE augmented by the
equivalent of LE 7.0 billion or 76.4 percent (against a pickup of LE 0.8 billion worth or 9.1 percent) to stand at LE 16.1 billion worth at end of June 2012.
Domestic liquidity amounted to LE 1094.4 billion at end of June 2012, up by LE 85.0 billion or 8.4 percent during FY 2011/2012 (against LE 92.0 billion and 10.0 percent a year earlier). The rise was a dual effect of the growth in net domestic assets, and the drop in net foreign assets. The former made a positive contribution of 17.9 percentage points to domestic liquidity growth, while the latter made a negative contribution of 9.5 percentage points. About 60.0 percent of the rise in domestic liquidity was pronounced in local currency deposits with banks which increased by LE 49.8 billion or 7.5 percent, scoring LE 714.3 billion (almost two thirds of domestic liquidity at end of June 2012). This is in addition to the pickup in the currency in circulation outside the banking system by LE 26.1 billion or 15.6 percent, and in foreign currency deposits by LE 9.1 billion worth or 5.1 percent.
The pickup in domestic liquidity was a reflection of the growth in money
supply and quasi-money. Money supply (M1) scaled up by LE 25.8 billion or 10.4 percent in the reporting year (against LE 34.7 billion or 16.2 percent in the year of comparison), amounting to LE 274.5 billion or 25.1 percent of total domestic liquidity at end of June 2012. The rise in money supply reflected both the increase in the currency in circulation outside the banking system and the slight decline in local currency demand deposits. Consequently, the former rose by LE 26.1 billion or 15.6 percent (against LE 32.7 billion and 24.2 percent in the previous FY), standing at LE 194.0 billion at end of June 2012.
2/1/3- Domestic Liquidity and Counterpart Assets
Growth Rate of Domestic Liquidity by Component in FY
3.02.5
3.8
1.6
4.7 4.7 5.96.2
0.02.04.06.08.0
10.012.014.016.0
2008/2009 2009/2010 2010/2011 2011/2012
(%)
Money SupplyQuasi-MoneyDomestic Liquidity Grow th
-34-
Local currency demand deposits scantily decreased by LE 0.3 billion or 0.4 percent during the reporting year (against a rise of LE 2.0 billion or 2.5 percent in the previous FY) reaching LE 80.5 billion at end of June 2012. The decline was the result of the drop in the deposits of the private business sector by LE 4.3 billion, which was offset by the rise in the deposits of both the household sector and the public business sector by LE 3.3 billion and LE 0.7 billion, respectively. Quasi-money (LE time and saving deposits plus demand and time and saving deposits in foreign currencies) augmented by LE 59.2 billion or 7.8 percent in the reporting year (against LE 57.3 billion or 8.1 percent a year earlier), scoring LE 819.9 billion or nearly three quarters of domestic liquidity at end of June 2012. That rise reflected the growth in both LE time and saving deposits and foreign currency deposits. LE time and saving deposits surged by LE 50.1 billion or 8.6 percent, to LE 633.9 billion or 77.3 percent of total quasi-money at end of June 2012. The increase of LE 62.1 billion in LE time and saving deposits of the household sector outstripped the rise in total deposits. Nevertheless, such a rise was held back by the fall in the deposits of the business sectors (public and private) by LE 5.1 billion and LE 6.9 billion, in order. Also, deposits in foreign currencies (demand and time and saving) went up by LE 9.1 billion worth or 5.1 percent in the reporting year (compared with LE 18.9 billion or 11.9 percent a year earlier), standing at LE 186.0 billion worth or 22.7 percent of total quasi money. All sectors contributed to the rise in foreign currency deposits, as the private business sector shared with LE 4.2 billion worth, the household sector with LE 3.6 billion worth, and the public business sector with LE 1.3 billion.
Against these developments, the ratio of foreign currency deposits total deposits (dollarization rate) slightly declined from 21.03 percent at end of June 2011 to 20.66 percent at end of June 2012.
-35-
The increase in the counterpart assets of domestic liquidity was traced both to the rise in net domestic assets and the fall in net foreign assets. The former registered a rise of LE 180.9 billion or 23.9 percent (compared with LE 120.9 billion or 19.0 percent in the previous FY), reaching LE 936.8 billion at end of June 2012.
Domestic credit rose by LE 179.8 billion or 20.1 percent in the reporting year (against LE 117.5 billion or 15.2 percent in the previous FY), standing at LE 1072.6 billion at end of June 2012.
Domestic Liquidity Components End of June 2012
Money Supply 25.1%
Quasi-money 74.9%
Foreign Currency Time & Sav ing Deposits 12.9%
Local Currency Time & Saving Deposits
57.9%
Foreign Currency Demand Deposits
4.1%
0100
200300400500
600700800900
10001100
20122011201020092008
Household Sector
Private Business SectorPublic Business SectorGov. Sector (Net)
Domestic Credit by Sector (End of June)LE bn
-36-
More than three quarters of the increase in domestic credit (78.6 percent)
was ascribed to the surge in net credit to the government (including public economic authorities) by LE 141.3 billion or 32.3 percent (against LE 111.2 billion or 34.1 percent a year earlier), posting LE 578.7 billion or more than half of domestic credit (53.9 percent) at end of June 2012. The rise reflected the increase in banks' holdings of government securities by LE 134.4 billion, and in government borrowing by LE 12.5 billion, on the one hand, and the rise in government deposits by LE 5.6 billion, on the other.
Credit to the private business sector also stepped up by LE 17.6 billion or
5.5 percent in the reporting year (against a decline of LE 3.1 billion or 1.0 percent a year earlier), bringing its indebtedness to banks to LE 340.9 billion or 31.8 percent of total credit at end of June 2012.
Likewise, credit to the household sector scaled up by LE 13.2 billion or
13.3 percent (against LE 6.4 billion or 6.9 percent), bringing its debts to LE 112.4 billion or 10.5 percent of total credit at end of June 2012. Moreover, credit to the public business sector climbed by LE 7.7 billion or 23.2 percent (against LE 3.0 billion or 10.0 percent), bringing its debts to banks to LE 40.6 billion or 3.8 percent of total credit at end of June 2012.
Net balancing items (the sum of capital accounts, inter-bank net credit and
debit positions and those between banks and the CBE and net unclassified assets/liabilities) had an expansionary effect on domestic liquidity during the year under review. Their negative balance fell by LE 1.1 billion, because of the increase in net unclassified assets and liabilities by LE 40.4 billion, on the one hand, and the augmentation of capital accounts by LE 22.2 billion and the rise in the negative balance of inter-bank net credit and debit positions by LE 17.1 billion, on the other.
However, the pickup in net domestic assets was held back by the LE 95.9 billion drop or 37.8 percent in net foreign assets of the banking system, to LE 157.6 billion worth at end of June 2012 (against LE 28.9 billion or 10.2 percent a year earlier). The decline was brought about by the fall in net foreign assets at both the CBE and banks. In figures, net foreign assets at the CBE declined by LE 71.1 billion worth (due to the decrease in its foreign assets by LE 64.1 billion worth and the increase in its foreign obligations by LE 7.0 billion worth). Similarly, net foreign assets at banks dropped by LE 24.8 billion worth, owing to the LE 24.4 billion decline in their foreign assets, and the LE 0.4 billion increase in their foreign obligations.
-37-
2/1/4- Payment Systems and Information Technology (IT)
The CBE continued to work on upgrading the payment systems and information technology to bolster the soundness and stability of the financial system, reduce credit risks, and expedite payment settlements and ensure their reliability and confidentiality. A step forward in this direction was the introduction of the RTGS system. Among the measures taken in this regard during the FY 2011/2012 were the following:
Payment Systems • The project of automating the payment of government employees’ salaries
through cards is moving forward in cooperation with the Ministry of Finance after a transitional pause over the 25th of January Revolution. A number of other governmental units were put into operation at the National Bank of Egypt. Among the vast benefits of this project was minimizing the risks of cash transfers of salaries from banks to the related government units.
• A revision of ACH direct debit rules has been finalized. Direct debit services
are executed between the EBC "Egyptian Banks Company for Technological Advancement" and commercial banks in Egypt. Such payment services will facilitate the expansion of electronic-based payments. The service went through a pilot phase in October 2012.
• The CBE is currently gearing to join the COMESA Clearing House. This
initiative aims at enriching the commercial and financial exchange with the COMESA countries as a major contributor to the Egyptian national security.
0
50
100
150
200
250
300
350
400
2008 2009 2010 2011 2012
Foreign Assets
Foreign Liabilities
Foreign Assets & Liabilities of the Banking Systemat End of JuneLE bn
-38-
The relevant internal rules and procedures are under consideration by the Central Bank of Egypt, parallel to the sign-off of the related agreements with COMESA and the Central Bank of Mauritius.
Information Technology • The CBE has finished preparing the RFP for the preparations of a permanent
Disaster Recovery (DR) site for the CBE (located next to the current main data centre at El-Gomhoria building in Cairo), to be functional in emergencies as a substitute for the main data centre in El-Gomhoreya Building. This is intended to ensure the continuity of IT services. Also, procedures are currently being taken to invite the specialized companies for bidding.
• The CBE finished the study of the IT’s demands and the expected cost to
provide a “Business Continuity Site” designed to be accessible, in emergency cases, to the employees of the investment and external relations sectors and their affiliate units, to enable them to use the bank's different systems. In addition, the possibility of making such service available to the other sectors of the bank is to be posed for consideration.
• In respect of the IT development plan at the Printing Press, the course of
action to be taken to complement the development of the other three systems (accounts - monitoring of inventory - costs) is currently under consideration, together with modernizing the IT infrastructure of the Press.
• Under the plan of developing the CBE branches and modernizing their IT
applications; as far as the operations of government accounts are concerned, the accounting system of the CBE “CAS” started operation in Alexandria branch. A study of the application of CAS to the other branches (Mohandessin and Port Said) is about to be finished soon.
• The CBE has participated in the IT infrastructure installation and
implementation project and took the necessary precautions to put the GATS system, for electronic government transfers, into operation. The project aims at enabling the Ministry of Finance to transform government payments to the CBE, into electronic (cashless) government payments. Such a step is bound to enhance the efficiency, accuracy and speed of making the accounting entries on the same day of their receipt.
-39- • The IT infrastructure installation and implementation project has been started
and necessary precautions were taken to put the “Straight Through Processing” system of the automated clearing house (ACH-STP) into operation. By linking the CBE to the interbank ACH, the project will enable it not only to receive electronic transfers from other banks, but also to automatically and directly affect government accounts on the CAS system therein. In this sense, the project will upgrade and expedite the settlement of the government receipts processed through the ACH of banks.
Local banking transfers in the Egyptian pound under the RTGS, applied as of mid March 2009, showed an increase in the number of executed messages to 1298.8 thousand messages in FY 2011/2012 (against 1248.7 thousand messages a year earlier), while the value of these messages declined from LE 15879.7 billion to LE 9402.3 billion. It is to be noted that these transactions included transfers of banks and clients, and transactions of treasury bills, and Misr for Central Clearing, Depository and Registry (MCDR), in addition to the corridor operations and deposits for monetary policy purposes.
RTGS and SWIFT Local Service Activity in Local Currency
Change during the Year + (-)
Number of
Messages (Unit) Value of
Transfers (LE mn) Number Value
2008/2009 897205 5294357 196537 2201956 2009/2010 1191374 13274677 294169 7980320 2010/2011 1248692 15879701 57318 2605024 2011/2012 1298763 9402300 50071 (6477401)
According to the statistics of the CBE Automated Clearing House that
became part of the RTGS system since its initiation, the number of exchanged cheques scaled down to 12829 thousand (from 13012 thousand). However, the value of these cheques increased to LE 661.2 billion in the reporting year (from LE 626.8 billion a year earlier). As a result, the average value per cheque edged up to LE 51.5 thousand against LE 48.2 thousand.
2/1/5- RTGS and SWIFT Local Service
-40-
CBE Automated Clearing House Activity
Change Rate + (-)
Number of Cheques (Thousand)
Value of Cheques (LE mn) Number Value
2008/2009 12062 548038 2.9 13.4 2009/2010 12994 584546 7.7 6.7 2010/2011 13012 626757 0.1 7.2 2011/2012 12829 661196 (1.4) 5.5
Transactions executed in foreign currencies under the Fin-Copy system,
via SWIFT, revealed a decrease in terms of the number and value. Specifically, the number of executed transactions amounted to 14.1 thousand at a value of US$ 62.3 billion, against 15.1 thousand at a value of US$ 88.1 billion a year earlier.
SWIFT Local Service Activity in US Dollar
Change during the Year + (-) Number of
Messages (Unit) Value of Transfers
(US$ mn) Number Value 2008/2009 12365 83019 (1560) (22567) 2009/2010 12204 70008 (161) (13011) 2010/2011 15066 88052 2862 18044 2011/2012 14080 62321 (986) (25731)
- 41-
2/2- Banking Developments
2/2/1- Banking Reform
In continuation of the banking reform program, launched in September 2004, the CBE finished the implementation of the second phase (2009 - 2011). The phase aimed at raising the efficiency and soundness of the Egyptian banking sector, and enhancing its competitiveness and ability for risk management so that it can perform its role in financial intermediation in a way beneficial to the national economy, and achieve the targeted development rates. The second phase of the reform program was based on a number of pillars, namely:
Preparing and implementing a comprehensive program for the financial and administrative restructuring of specialized state-owned banks (the Principal Bank for Development and Agricultural Credit, Egyptian Arab Land Bank, and Industrial Development and Workers Bank of Egypt), which is expected to positively affect these banks’ performance.
Following up periodically on the results of the first phase of restructuring the commercial state-owned banks (the National Bank of Egypt (NBE), Banque Misr (BM) and Banque du Caire (BdC)). The follow-up showed that the first phase of the banking sector reform program (2004-2008) had already borne fruit and positively affected the performance of those banks. In the second phase, the requirements for enhancing the efficiency of the said banks - in terms of financial intermediation, risk management, human resources, and IT - have been fully satisfied to ensure the continued improvement of their financial performance and competi-tiveness.
Applying Basel II standards in Egyptian banks to enhance their risk management practices. In this context, a protocol had been signed with the European Central Bank and seven European central banks to provide a three-year technical assistance program launched in January 2009, to implement Basel II requirements in the Egyptian banking sector. It is worthy to note that the strategy of the CBE in implementing Basel II framework, which was announced for Egyptian banks and the relevant parties in an extensive meeting held in Oct. 2009, is based on the two main principles of simplicity and consultation with banks, to ensure banks’ compliance with these standards. According to the above-said
- 42- strategy, Basel II standards should be phased in gradually over the following stages:
• The first stage (January - June 2009) focused on improving the technical skills of the CBE’s core team and devising a strategy for Basel II implementation. This phase was successfully completed.
• The second stage (July 2009 - June 2011) which is considered the pivotal phase of the reform program, covered extensive coordi-nation with the banking sector, through discussion papers related to the most important topics and selection of the most appropriate methods for application in Egypt, taking into consideration similar experiences in other countries that had implemented Basel II. Moreover, the quantitative impact of the possible consequences of Basel II standards had been measured before the mandatory application. That phase was also successfully completed.
• The third stage (July - December 2011) focused on the fine-tuning of future supervisory regulations related to Basel II, taking into account the legal aspects and development of corrective action plans commensurate with the different types of banks, according to the simulation results for each bank on a case-by-case basis. Also, a parallel run of existing regulations and Basel II was applied upon issuance. In this context, draft regulations and some relevant proposals had already been set, pertaining to banks that need to take additional actions to abide by the established minimum requirements of the capital adequacy standard. A study of the qualitative impact was also conducted on a sample of banks, pertaining to the level of internal audit to pave the way for the issuance of related supervisory regulations. In addition, some of the resources provided by the EU were used to upgrade the regulatory performance of the Supervision Sector. Moreover, a new data warehousing framework was implemented to improve the process of data collection and storage, in accordance with the future updated supervisory regime.
• The fourth stage (implementation is under way) - a parallel run of Basel II and the existing regulations on capital adequacy was applied upon issuance. Moreover, the data warehousing framework was completed.
- 43-
The aforementioned program which has been guided by the positive results of the first phase of the banking reform program (2004-2008) was finalized at the end of March 2012. Foremost of these were the measures taken to contain the impact of the recent global financial crisis, as was the case in most other international financial markets and banking systems and, not least, the resilience of the Egyptian banking system amid the events of January Revolution. On the other hand, the European Central Bank took part in the first phase of upgrading the CBE Supervision Sector by concluding a cooperation agreement in 2005, whereby a shift was made from compliance-based to risk-based supervision. Concurrently, the MIS system was upgraded to ensure the accuracy and timeliness of required data.
In this light, the application of Basel II to the Egyptian banking sector has become one of the centerpieces of the second phase of the banking reform program initiated by the CBE in 2009. In other words, it is considered an integral part of the regulatory framework of Egypt, which aims at the following:
- Enhancement of the management of all risk types to ensure bank
stability. - A more efficient management of capital, in order to address virtual
risks. - Keeping pace with the international best practices, to help improve the
competitiveness of the Egyptian banking system.
However, it should be taken into consideration that Basel standards develop and change in their own right, by virtue of their dynamic nature, so as to cope with the challenges of the global banking market. In this context, Basel III has been launched on the international level, and its full and timely implementation in the world banking market is expected to be completed by 2019. While making arrangements for the application of Basel II, the CBE was also considering Basel III applications in order to facilitate their future adoption in the Egyptian banking sector.
The actual application of the executive instructions of Basel II standards to the Egyptian banking system is scheduled to commence in 2012. For banks with fiscal year ending in June, these standards shall be binding as of June 2013, and for the other banks, as of Dec. 2012.
- 44-
Embracing an initiative promoting the development and growth of banking activities/services catering and access to finance for various sectors, especially small- and medium-sized enterprises (SMEs). In this regard, the CBE exempted banks' deposits - equivalent to the size of direct loans and credit facilities extended thereby to finance SMEs - from the 14 percent reserve requirement ratio (RRR was decreased to 12 percent and further to 10 percent during Q1 and Q2 of 2012, respectively). Needless to say that poor access to adequate, timely and reliable statistical data and information is one of the main obstacles to the development and finance of small- and medium-sized enterprises (SMEs). Hence, the Central Bank of Egypt and the Egyptian Banking Institute (EBI), in collaboration with the Central Agency for Public Mobilization and Statistics (CAPMAS), embarked on a field survey of small- and medium-sized enterprises (SMEs) covering all the governorates of Egypt, on the basis of the full count approach. The first phase, conducted in Al Sharqiya Governorate, had been completed, and in the light of its results, the survey was carried out in the rest of the governorates. It is worthy to mention that all other governorates were surveyed, up to December 2011. Moreover, the database has been inaugurated on the EBI website in February 2012 and will be periodically updated.
Revising and issuing corporate governance rules in the Egyptian banking sector and the CBE. In this concern, the instructions of bank governance rules were approved by the CBE Board Decision dated July 5, 2011 (as stated above), after consultation with the Egyptian Financial Supervisory Authority (EFSA) within the framework of coordination among the regulatory authorities of the financial sector. Moreover, the draft of the said instructions was presented to all banks to get their feedback (comments and proposals) to avoid the difficulties of application.
The second phase of the banking reform program followed the successful implementation of the first phase, which was centered on four pillars: (1) consolidation and privatization of the banking sector, (2) financial and managerial restructuring of state-owned banks, (3) addressing the non-performing loans issue, and (4) upgrading the Supervision Sector at the CBE.
As for the first pillar, some voluntary and state-forced mergers took place, leading to a decrease in the number of banks operating in Egypt from 57 at end of December 2004 to 39 banks at end of December 2008. Under this program, 80 percent of the share of the capital of the Bank of Alexandria was sold to Italy’s Sanpaolo Bank, besides the divestiture of the shareholdings of state-owned banks in a number of joint venture banks.
- 45-
With respect to the second pillar, state-owned banks were restructured under a comprehensive and time-lined plan, designed by the Banking Reform Unit at the CBE. The plan was intended to develop all departments and technological systems, besides establishing new departments, particularly for risk management, information technology (IT), and human resources. To this end, a project on the application of the international best practices - implemented with the assistance of foreign consultants - was completed on time. In addition, a full audit of state-owned banks was conducted according to international accounting standards, covering the years from 2004 to 2008. Finally, the recruitment of highly qualified banking cadres and senior management at state-owned banks has supported those banks with adequate expertise to enable them to push ahead with reform and development.
Concerning the third pillar, to address the problem of non-performing loans, the CBE's NPL Management Unit worked out a variety of approaches and programs that helped settle more than 90 percent of NPLs (excluding debts of the public business sector). With regard to the non-performing loans of public business sector enterprises to public banks, about 62 percent was repaid in cash to the public commercial banks. As for the remaining debts (38 percent), an agreement was signed on 14/9/2009 whereby the in-kind repayment of the outstanding debt was made at the end of June 2010.
A program to reform the Supervision Sector was devised to achieve the following targets: enhance the efficiency of this sector by benefiting from the international best practices, and apply the concept of risk-based supervision to ensure the sector’s robustness and soundness. Furthermore, efforts were exerted to recruit highly qualified staff versed in advanced technology, enhance the efficiency of human cadres to be capable of managing this key sector, and upgrade the management information system (MIS) to ensure timely access to accurate data. In light of the aforementioned, a technical assistance program - in collaboration with the European Central Bank (ECB) and four European central banks - was completed in the last quarter of 2007. Moreover, Basel II applications program which was introduced in the Egyptian banking sector, with the participation of seven European central banks - in coordination with the European Central Bank - was finalized at the end of Q1 of 2012 as mentioned above.
- 46-
2/2/2- Supervision Sector Being the regulator of banks in Egypt, the CBE aims to ensure the soundness of banks’ financial positions and evaluate their performance from the perspective of risk-based supervision. In addition, it ascertains banks’ compliance with the established regulatory standards, including the minimum reserve requirement and liquidity ratios, the maximum limits of a bank’s concentration of investments with a single customer along with his related parties, and investments abroad, as well as the asset-liability matching in terms of maturity and currency. This is in addition to a number of qualitative standards that ensure - alongside the abovementioned - the soundness of banks’ performance and the safety of depositors’ funds, including governance rules; information systems efficiency rules; and eligibility and competency criteria for officials and managers of key sectors at banks.
The implications of the recent international financial crisis bore out that
the instructions and reform policies adopted by the CBE to restructure banks; raise their capital and strengthen their risk management systems proved highly instrumental in containing the effects of the crisis. Moreover, the CBE had thoroughly monitored the financial crisis in many countries, especially in the euro area, so as to be capable of making immediate decisions - when necessary - to counteract the spillovers of the crisis in due time.
Hereunder are the main decisions taken by the CBE’s board of directors to regulate the banking activity, as well as the bank instructions issued by the Supervision Sector during the reporting period:
• The CBE BOD - in its session dated 3 January 2012 - issued Decision No. 104/2012 to amend the provisions of the BOD Decision dated 26 April 2005 pertaining to the regulations of the CBE credit registration system regarding clients who delay their repayments, with respect to the instructions of their inclusion in the negative lists and the course of action to be taken in this regard. Also, in continuation of the efforts made to enhance the efficiency and transparency of this system, the Decision updated the credit registration system at the CBE to help take appropriate credit decisions when granting credit, and to cope with any changes in the conditions of the banking sector. In addition, the Decision aims to ensure the provision of clear and accurate data on clients with delinquencies and payment delays, remove the unjustified cases from the negative lists, and to set fair listing rules in the future to guarantee that banks' transactions with clients are transparent enough to achieve the soundness of the credit system in the banking sector.
- 47- • Setting a number of rules on December 28, 2011 to be followed by banks
when conducting direct transfers for import transactions, in order to tighten supervision over that type of transactions. The decision came after discussing, in the meeting of the Federation of Egyptian Banks on December 27, 2011, the requests of clients for making such transactions, to guarantee the execution of direct transfers for suppliers abroad, even before the receipt of documents.
• Extending the cash cover exemptions on all meat, poultry and sugar
imports - by merchants (for trading purposes) or by government entities - from the minimum cash cover limit, for additional six months ending on 31 December 2012.
• On its session dated 5 July 2011, the CBE Board of Directors issued a
decision on banks' governance rules. Banks were required to set or develop their governance systems accordingly, in line with the size and complexity of their respective activities, policies and risk management capacity; no later than 1 March 2012. In case any bank fails to abide by any of these rules, the matter should be referred to the CBE for consideration, attached with reasonable justifications. The aforementioned governance rules mainly focused on the
following: ▪ The formation of the board; ▪ A clear definition of the responsibilities and obligations of the
members of the board of directors, besides emphasizing that the senior management is accountable to the board;
▪ The roles of the Board's committees and their formation; ▪ The supervisory role of the Board over the risk management systems
and internal control; ▪ Formulation of effective policies for salaries and remunerations and
for the management of conflicts of interest; and ▪ The principle of transparency and disclosure of important financial and
non-financial information, as well as the disclosure of the total value (on the basis of a monthly average) of the pay (salaries and rewards) earned by the twenty highest paid employees in a bank, based on the financial statements made in December 2011 and June 2012, according to the date at which the fiscal year of each bank ends.
- 48-
In this respect, on its session dated 6 April 2004, the CBE BOD approved the competency criteria for chairmen, board members and executive directors of banks, to make sure that they are qualified for their posts. Competency criteria were modified by the BOD in its session on 24 November 2009, where a new criterion was introduced, prohibiting any official to simultaneously occupy the two positions of a senior manager in one bank and a member of the board of directors of another. The new criterion was applicable to future nominations, with the exception of those banks entirely owned by the CBE. This modification was intended to prevent any conflict of interests, in compliance with the good governance practices. In addition, interviews should be made with chairmen, deputy chairmen, delegated members, executive board members of banks and executive directors to ensure their eligibility for the positions they are nominated for, particularly as far as the candidates for risk-, compatibility- and compliance-related positions are concerned.
As for foreign nominees at banks (board members and executive directors), a criterion was set to ensure that the regulatory authority of the parent bank, or the bank where the nominee was last employed (as the case may be) is to be consulted about the nominee in question, to identify his/her eligibility for the vacant position.
In this context, the register of banks witnessed the addition of (111)
members in the different positions of banks’ board of directors and (28) executive directors, pursuant to Article 43 of Law No. 88 of the year 2003 promulgating the Law of the Central Bank, the Banking system and Monetary sector.
In the light of Article 32/3 of the aforesaid Law which states that the Governor of the Central Bank, following consent of the Board of Directors, shall approve the statute of the bank, and any modification thereto, certain articles of the statutes of 14 banks were modified during the reporting year. In consistency with the policy of the CBE that encourages the growth and geographical expansion of banks by opening new branches nationwide, the applicable criteria for approving the establishment of new branches/agencies for banks were revised, with a view to streamlining and simplifying the relevant procedures. Moreover, a number of guidelines were set for applicant banks that give due regard to the soundness of banks' financial positions, internal control systems, the efficiency of their information systems and capital adequacy to ensure that they can better face the risks arising from the expansion in their activities. In this respect, fifty seven new branches of nineteen banks were added to the register of banks in the reporting period.
- 49- Recently, banks have been eager to provide e-banking services to keep pace with the technological progress in this field. Such services which are either traditional or innovative (effected via electronic networks), had been regulated earlier by the rules issued by the CBE Board of Directors on 28 February 2002. Later, on 2 February 2010, the CBE Board of Directors approved the regulations governing the operation of payment orders via mobile phones in Egypt. Furthermore, the CBE is currently updating the rules of e-banking operations and the rules regulating the electronic payment services, in order to limit the risks of banks' exposure as a result of offering such services. In this concern, nineteen banks have been licensed to offer twenty six e-banking services including, for instance, inquiry for accounts through the internet, electronic bill display and repayment, electronic balance sheets and notifications with account operations via SMS.
To organize dealing in the Forex market in Egypt and maximize the savings of workers abroad, Forex dealers and money transfer companies operating in Egypt were subjected to off-site supervision, according to the Law of the Central Bank, Banking Sector and Money Market. In this respect, while the Review at hand has been under preparation, one exchange dealer company was de-listed and, according to the CBE Governor's Decision No. 17 for 2012, a license was given to a new one. Moreover, 37 branches of existing Forex dealers were registered, thus bringing their total number to 484 nationwide after delisting a branch of one company.
Moving to tourism services, the CBE - pursuant to the aforesaid Law - had already licensed shops in the customs areas at airports to sell in foreign currencies, alongside the Egyptian pound, with the aim of covering part of the State’s resources of foreign currencies and encouraging tourism. Two new shops were granted this license, thus bringing the total number of licensed shops to 81 at the end of the reporting period. Also, after the CBE licensed four shops in the free zones to sell in foreign currencies as well as the Egyptian pound, their number reached 27 shops at the end of the same period.
The CBE allowed banks to participate in the establishment of different types of mutual funds, to cater for risk-averse investors who have cash money but lack the necessary experience, know-how, or time to invest in such tools that yield good returns. Three banks were given approval to start the procedures for establishing three mutual funds in the period in question.
- 50- In order to encourage individuals to save, registered banks were allowed to issue saving systems of at least three years, with some privileges, to be able to raise their market interest rates above the short-term interest rates. Hence, banks were permitted, during this period, to issue 39 new saving vessels (in local currency) and to make some adjustments to the existing ones, with the aim of increasing the volume of medium- and long-term savings, to help banks finance production and industrial enterprises. Moreover, banks were also permitted to issue three new saving systems in US dollar.
The CBE has been keen to support the “primary dealers system” established by virtue of the Minister of Finance’s Decree No. 480 for 2002, by taking all means possible for its success, in view of its positive impact on the government stock market. This system allowed the selection of a number of banks to engage in the underwriting of the primary issues of government securities and to actively trade thereon in the secondary market. Within this context, the CBE renewed the license of 13 banks for practicing the primary dealers’ activity, as they managed to comply with the regulations issued by the CBE Board in its decision on 6 June 2002 that permitted banks to practise such activity.
Turning to on-site supervision, the CBE made progress with its plan for
the inspection of the banking sector units (banks) and Forex dealers according to the risk level of each bank and the quality of its products and activities. Furthermore, considerable efforts have been exerted to monitor the transfers made by Egyptian banks and verify their purposes and the parties involved, in accordance with the relevant CBE instructions to help take immediate corrective actions as deemed necessary. In addition, the system of specialization-based examination was adopted to enable bank inspection to be conducted by inspectors specialized in the relevant activities (e.g. retail banking, market risks, IT, etc.). That approach is bound to render the inspection process more effective and in-depth by providing a thorough risk profile of the inspected bank, and monitor progress on the execution of corrective actions in collaboration with off-site supervision. On the other hand, the Supervision Sector at the CBE continued to cooperate with the supervisory and judicial authorities in resolving a number of money and banks issues. Moreover, the Sector examines the complaints filed by the banking system customers and provides the required banking expertise.
- 51- 2/2/3 - Overview of Banks’ Aggregate Financial Position The aggregate financial position of registered banks operating in Egypt (40 in number)* posted LE 1366.2 billion at end of June 2012, up by LE 96.5 billion or 7.6 percent during FY 2011/2012 (against LE 49.0 billion and 4.0 percent).
Most of the rise on the liabilities side (roughly two thirds or 68.9 percent)
stemmed from the pickup in deposits at banks (by LE 66.5 billion or 6.9 percent), to register LE 1023.5 billion and 74.9 percent of the aggregate financial position of banks at end of June 2012. Increases were also seen in banks’ equities (by LE 11.8 billion or 14.5 percent), bonds and long-term loans (by LE 1.7 billion or 6.3 percent), and other liabilities (by LE 27.1 billion or 25.3 percent). Conversely, obligations to banks in Egypt (including the CBE) shrank by LE 9.2 billion or 32.5 percent, along with provisions by LE 1.0 billion or 1.8 percent, and obligations to banks abroad by LE 0.4 billion or 2.5 percent.
* After adding the Arab International Bank; given that 39 banks only are covered by the financial position data.
Banking Liabilities & Relative Importance of their Components at End of June
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 20120
300
600
900
1200
1500
LE bn
Equities Provisions Bonds & Long-term LoansObligations to Local Banks Obligations to Banks Abroad Total DepositsOther Liabilities Total Liabilities-Right Scale
- 52-
On the assets side, banks' investments in securities and treasury bills
expanded by LE 81.2 billion or 17.1 percent (against LE 68.3 billion and 16.8 percent in the previous FY), recording LE 555.3 billion or 40.6 percent of the aggregate financial position of banks at end of June 2012. Likewise, lending and discount balances increased by LE 32.6 billion or 6.9 percent to LE 506.7 billion, thereby constituting 37.1 percent of banks' aggregate financial position. In addition, other assets augmented by LE 15.9 billion or 17.1 percent. On the other hand, balances with local banks retreated by LE 12.7 billion or 10.9 percent and so did balances with banks abroad by LE 20.2 billion worth or 21.0 percent.
The Banking System's Assets & Relative Importance of their Components (End of June)
0%
20%
40%
60%
80%
100%
2008 2009 2010 2011 20120
300
600
900
1200
1500LE bn
Cash Securities & Investments in TBsBalances with Local Banks Balances with Banks AbroadLoan & Discount Balances Other AssetsTotal Assets-Right Scale
Growth Rate of the Banking System Liabilities during FY (%)
26.7
(22.6)
(21.7)
(6.4)
(71.5)
(25.3)
7.2
23.2
14.0
15.8
6.3
(10.6)
(74.0)
6.9
25.3
20.7
(2.5)
(1.8)
Capital
Reserves
Provisions
Bonds & long-term loans
Obligations to local banks
Obligations to the CBE
Obligations to banks abroad
Total deposits
Other liabilities
2011-20122010-2011
- 53-
The increase in banks' investments in securities and bills was largely ascribed to the rise in their investments in government bonds by LE 50.1 billion and in treasury bills by LE 36.0 billion. However, investments in foreign securities fell by LE 2.5 billion, in non-government bonds by LE 1.4 billion and in corporate equities by LE 1.0 billion.
Growth Rate of the Banking System Assets End of June (%)
19.1
16.8
(3.4)
(45.9)
67.5
1.7
19.5
(2.0)
17.1
(9.0)
(11.3)
(21.0)
6.9
17.1
Cash
Securities & investments in TBs
Balances with local banks
Balances at the CBE
Balances with banks abroad
Loan & discount balances
Other assets
2011-20122010-2011
Relative Structure of Banks' Portfolio Investment
52.4
2.36.9 4.6
51.2
37.8
1.7 3.5
33.8
5.8
0
10
20
30
40
50
60
Treasury Bills Gov. Bonds Non-gov.Bonds
Corp. Equities ForeignSecurities
%June 2011June 2012
- 54-
2/2/4 - Interbank Transactions
2/2/4/1- Transactions with Banks Abroad In 2011/2012, net transactions of local banks with correspondents
abroad unfolded a decline in their net credit balances with banks abroad (by the equivalent of LE 19.8 billion or 24.5 percent) to stand at LE 61.1 billion worth at end of June 2012 (against LE 80.9 billion worth at end of June 2011). The fall in banks' credit balances was a dual effect of the decrease in both their balances with banks abroad and their obligations thereto, by the equivalent of LE 20.2 billion and LE 0.4 billion, in order.
Transactions with Banks Abroad (LE mn)
Change in FY End of 2010/2011 2011/2012
June 2011 June
2012 Value % Value % Net Position 80912 61112 43846 118.3 (19800) 24.5 Balances with banks abroad
96080
75904
38709
67.5
(20176)
21.0
Obligations to banks abroad
15168
14792
(5137)
(25.3)
(376)
2.5
2/2/4/2 - Interbank Transactions in Egypt
The volume of transactions among banks in Egypt in the interbank
market, in terms of deposits, declined by LE 1.7 billion or 9.0 percent (against LE 0.7 billion or 3.4 percent in the year of comparison), bringing total deposits to LE 17.2 billion at end of June 2012. The decline was an outcome of the fall in foreign and local currency deposits by LE 1.6 billion worth and LE 0.1 billion, respectively.
- 55-
2/2/5 - Deposits
During FY 2011/2012, banks' deposits (including government deposits)
grew by LE 66.5 billion or 6.9 percent (against LE 64.5 billion and 7.2 percent during the previous FY), standing at LE 1023.5 billion or 74.9 percent of banks' aggregate financial position at end of June 2012. More than three quarters of the increase (79.6 percent) resulted from the rise of LE 52.9 billion or 7.3 percent in local currency deposits, to LE 777.8 billion at end of June 2012. On the other hand, deposits in foreign currencies increased by LE 13.6 billion worth or 5.8%, to LE 245.7 billion worth.
Deposits in The Interbank Money Market(End of June)
7000
7500
8000
8500
9000
9500
10000
2011 2012
LE mn
Local Currency Foreign Currencies
Growth in Deposits by Currency
0
10
20
30
40
50
60
2010/2011 2011/2012
LE bn
Local Currency External sector
- 56-
Deposits at Banks by Sector
(LE mn) Local Currency Foreign Currencies End of June 2010 2011 2012 2010 2011 2012 Total 686052 724878 777806 206440 232159 245711Government sector 58496 56728 58930 45618 51403 55731Public business sector 32726 29278 24843 6474 7549 8812Private business sector 114372 103965 92697 54907 60241 64496Household sector 477842 532032 597459 96875 109248 112859External sector 2616 2875 3877 2566 3718 3813
The pickup in the local currency deposits of the household sector was
higher than the increase witnessed in total LE deposits. In figures, its deposits in local currency scaled up by LE 65.4 billion or 12.3 percent to LE 597.5 billion, thereby representing 76.8 percent of the total LE deposits at end of June 2012. Moreover, the deposits of the government sector rose by LE 2.2 billion or 3.9 percent, and those of the external sector by LE 1.0 billion or 34.9 percent. However, the rise was offset by the decrease of LE 11.3 billion in the deposits of the private business sector, and of LE 4.4 billion in those of the public business sector. Turning to foreign currency deposits, their increase was attributed to the rise in the deposits of the government sector and the private business sector by the equivalent of LE 4.3 billion each. Likewise, the deposits of the household sector went up by LE 3.6 billion worth to LE 112.9 billion worth, representing 45.9 percent of the total deposits in foreign currencies at end of June 2012, and also those of the public business sector (up by LE 1.3 billion worth or 16.7 percent).
Rate of Change in Deposits by Sector
(20)
(10)
0
10
20
30
40
50
2010/2011 2011/2012 2010/2011 2011/2012
Local Currency Foreign Currencies%
Government Sector Public Business Sector Private Business SectorHousehold Sector External sector
- 57-
2/2/6 -Lending Activity
Banks expanded their lending activity during the year, compared to the preceding FY. As a result, their lending and discount balances grew by LE 32.6 billion or 6.9 percent, against LE 8.1 billion or 1.7 percent, totaling LE 506.7 billion (37.1 percent of total assets and 49.5 percent of total deposits at end of June 2012).
Change in Bank Loans by Sector (LE mn)
2010/2011 2011/2012 Local
Currency Foreign
Currencies Local
Currency Foreign
Currencies
Total 14110 (5961) 36411 (3814)
Government sector
2802
(2384)
(3576)
(2637)
Public business sector
3509
(634)
7021 709
Private business sector
2116
(4509)
19524 107
Household sector
5846
569
13626
(405)
External sector (163) 997 (184) (1588)
The pickup in the lending and discount balances was an outcome of the
rise in local currency loans by LE 36.4 billion or 11.1 percent, to LE 364.2 billion at end of June 2012, and the decline in lending and discount balances in foreign currencies by LE 3.8 billion worth or 2.6 percent, to LE 142.5 billion worth. The private business sector accounted for around 53.6 percent of the increase in local currency loans, with a rise of LE 19.5 billion or 10.4 percent (against LE 2.1 billion and 1.1 percent). Likewise, loans received by the household sector moved up by LE 13.6 billion or 14.2 percent and the public business sector’s by LE 7.0 billion or 28.6 percent. In contrast, loans to the government sector decreased by LE 3.6 billion and to the external sector by LE 0.2 billion. As for loan and discount balances in foreign currencies, the decline reflected the fall in the share of the government sector by LE 2.6 billion worth or 12.2 percent, of the external sector by LE 1.6 billion worth or 9.6 percent, and that of the household sector by LE 0.4 billion or 13.1 percent.
- 58-
The relative distribution of loans by economic activity indicates that the manufacturing sector was the major recipient, with a share of 37.1 percent (in local and foreign currencies) at end of June 2012. The services sector came next with 26.5 percent, followed by the unclassified sectors including the household sector (25.4 percent), trade (9.8 percent), and agriculture (1.2 percent).
At end of June 2012, loans and advances (excluding discounts) provided by banks by maturity registered LE 503.2 billion, with an increase of LE 31.9 billion or 6.8 percent during the reporting year. The increase was obvious in short-term loans (one year or less), which rose by LE 17.3 billion or 8.0 percent, as a result of the expansion in local currency loans by LE 18.3 billion and the contraction in foreign currency loans by LE 1.0 billion worth. Furthermore, long-term loans (more than one year) increased by LE 14.6 billion or 5.7 percent, as an outcome of the growth in local currency loans by LE 17.2 billion and the fall in foreign currency loans by the equivalent of LE 2.6 billion.
Credit Facilities by Economic Activity at End of June 2012
0
40
80
120
160
200
Agriculture Manufacturing Trade Services Unclassified
LE bn
Local Currency Foreign Currencies
Loans & Advances by Banks Excluding Discounts (End of June)
0
50
100
150
200
250
2011 2012 2011 2012
One Year or Less Over One Year
LE bn
Local Currency Foreign Currencies
- 59-
3-Non-Banking Financial Sector∗
3/1- Stock Market
In FY 2011/2012, progress has been made with the efforts to develop the regulations of the stock market. In this context, the Prime Minister issued Decree no. 421 for 2012 on 20/4/2012 to amend Articles (58) and (59) of the Executive Regulations of Central Depository and Registry Law promulgated by the Minister of Foreign Trade's Decree no. 906 for 2001, concerning the regulations of selecting the members of the Board of Directors of Misr for Central Clearing, Depository and Registry (MCDR). Article 58 mainly provides that the membership of the MCDR Board of Directors shall consist of not more than 13 members, and the majority of them - including the chairman and the managing director - shall have the required experience and competence. The Egyptian Exchange (EGX) shall be represented by at least one member in the MCDR's Board. The MCDR's statute specifies the percentages of representation of the company's groups of shareholders in the Board, and how to nominate candidates for chairmanship and membership, given that the EFSA' Board of Directors shall determine the criteria of nomination in terms of the required experience and competence.
Article 59 stipulates that the EFSA's Chairman shall be notified with the
decision on the appointment of the chairman and members of the MCDR's Board; or with any modification in the Board’s membership, within two weeks of the decision’s issuance. Should the position of any Board member become vacant, it shall be occupied by the member next to the former in terms of the number of voices obtained in the latest election of the Board. And the term of membership of the latter shall be complementary to that of his/her predecessor.
In order to regulate dealing in the stock market, the Prime Minister issued Decree no. 572 for 2012 dated 24/5/2012, to amend some provisions of the Executive Regulations of the Capital Market Law, promulgated by Decree no. 135 for 1993 issued by the Minister of Economy and Foreign Trade. The aforesaid Decree obliged securities brokerage companies, bonds brokerage and intermediation companies and portfolio management companies to restrict their trading on foreign securities - for their own account or in behalf of their customers - to the certificates of deposits of listed securities at the EGX; rather than foreign securities abroad, according to the regulations set by the EFSA'
* Source: the EFSA, and the EGX's monthly reports.
- 60-
Board of Directors. In addition, the Decree obligated these companies to adjust their positions in consistency with the provisions prescribed in the said Decree, not later than six months of the date of the Decision’s enforcement.
In order to regulate and protect dealers in financial instruments, the EFSA's Board of Directors issued Decision no. 105 for 2011 dated 18/12/2011 regarding the rules and procedures regulating the transfer of more than one securitization portfolio to a single securitization company, and the issuance of more than one securitization bond by any joint stock company (other than securitization companies).
According to the aforesaid Decision, the issued capital of a securitization company must be fully paid, and shall not be less than LE 5 million, whereas the net value of the company’s assets shall not be less than the value of the issued capital and the paid-in capital. In addition, the custodian in charge of managing the issuance of securitization bonds shall not violate any of his obligations to the holders of securitization bonds issued earlier. Furthermore, a securitization company shall obtain a pledge from the owner of the financial rights to the portfolio to transfer the rights in question to the securitization company, given that the pledge shall specify the estimated value of the transferred portfolio. For a securitization company to be granted license, the Decision stipulates that it shall comply with the requirement of disclosure, in accordance with the laws and regulations of the EFSA’s BOD, and shall pay the established fees and deposit the insurance amount with the EFSA. The Decision also specifies the documents to be attached to the license application of a joint-stock company (other than securitization companies) for making more than one securitization bond issue.
In order to enhance disclosure and transparency in the stock market, the EFSA issued Decision No. 23 for 2012 dated 12/3/2012, amending Articles (3) and (32 bis) of the rules of listing, continuation of listing, and delisting of securities on the Egyptian Exchange issued by the CMA's BOD Decision No. 30 for 2002 on 18/6/2002 and its amendments, regarding subscription rights. The meaning of a subscription right is to grant preemptive rights to senior shareholders to subscribe for shares of capital increase by cash nominal shares. Pursuant to these amendments, companies are required to complete the full listing of issued securities. The subsequent issues (shares and subscription rights) shall be listed as follows: (1) in relation to capital increase, within two months following the date of closing the subscription, (2) in relation to capital increase due to merger, within two months following the date of issuing the decision of the administrative entity on the merger, and (3) within two months
- 61-
after the general assembly’s approval of the capital increase through the distribution of free shares. Moreover, any listed company willing to increase its paid-up capital, and to make effective the preemptive rights of senior shareholders, must submit an application for listing these rights to the EGX, at least five working days prior to the date of opening subscription. The application must be enclosed with the EFSA's approval on the announcement of the invitation of senior shareholders for subscription, along with the approval of MCDR on listing these rights. The subscription right shall be listed by a decision of the EGX Listing Committee.
Moreover, the Decision obligated companies to comply with the takeover rules stated in Chapter 12 of the Executive Regulations of Capital Market Law No. 95 of 1992. It also set forth the regulations of trading in subscription rights dependently with the principle shares, provided that the period from the date of publishing the announcement till the last day of subscription shall not be less than 15 days. For the capital increase shares that are traded separately from principle shares, this period shall not be less than 30 days. As for regulating trading in subscription rights, the EFSA's Chairman issued Decision no 282 dated 26/4/2012 concerning the rules of trading in subscription rights. The Decision permitted those shareholders who lack financial solvency to participate in raising corporate capitals by selling their rights to other investors in return for a percentage of money.
The first Article provides that the trading rules for subscription rights -
issued by the EGX Board of Directors and mentioned in the letter of the EGX Chairman dated 20/2/2012 - shall be approved, without prejudice to the takeover rules prescribed in Chapter 12 of the Executive Regulations of Capital Market Law No. 95 of 1992. Moreover, all the trading rules that have force in the EGX shall be applied to trading in subscription rights. The second Article stipulates that trading in subscription rights shall be subject to the same supervision and control rules applicable to trading in the corporate shares listed on the EGX.
Within the framework of activating the role of small and medium
enterprises, in view of their important role in supporting the Egyptian economy in the current stage, the EFSA Board of Directors issued Decision no 738 regarding trading, settlement, and supervision of the listed shares of small and mid cap companies. Companies listed on the small and mid cap market (NILEX) shall be traded in a daily continuous trading session that lasts for one hour, according to the same trading mechanism applicable in the main market. The price limits are allowed to fluctuate within a range of 5% up and down.
- 62-
Settlement of small and mid cap stocks shall take place on (T+2). Moreover, the BOD of the EFSA issued Decisions no. (81) and (83) of 2011, regarding the listing rules of securities issued by SMEs at the EGX tables, and the regulation of the registry of accredited sponsors for small and medium enterprises. As for the latter, it included transferring the registry, together with all listing requests and documents, from the EFSA to the EGX.
Under the development plan adopted by the EGX to upgrade its
infrastructure technologically and technically, the EGX inaugurated its new premises at the Smart Village on 12/4/2012. Moreover, a memorandum of understanding was signed between the EGX and Istanbul Menkul Kiymetler Borsasi (IMKB) on 22/6/2012 to reinforce cooperation between the two markets as related to Exchange Traded Funds (ETFs), and to exchange technical information in the field of Automated Trading Systems Development.
As part of its marketing policy that aims to attract a new bracket of
companies to be listed on the Egyptian Exchange, its Board agreed (in April 2012) to exempt companies, when applying for the first time, from the listing fees, provided that they should finish all the listing and offering procedures within a period not exceeding three months (from 1/7/2012 till 30/9/1212). To raise market participants’ awareness with the advantages of listing in the NILEX, the EGX signed - during the second half of the FY - a memorandum of understanding with the Information Technology Industry Development Agency (ITIDA), and the EGX officials held a series of meetings and workshops with a number of businessmen and investors.
Turning to the performance of the EGX, all price indices registered losses in FY 2011/2012, triggered by the worries of market participants about the consequences of the political and economic turmoil in Egypt. Thus, EGX 30 lost 12.4 percent, ending the year at 4708.6 points (against 5373.0 points at end of June 2011). Likewise, EGX 20 Capped declined 7.4 percent to 5452.0 points, EGX 70 moved down, as well, by 33.0 percent to 422.0 points, and so did EGX 100 by 25.0 percent to 729.5 points. Similarly, the general index of the capital market lost 28.9 percent, concluding the year with 604.6 points.
- 63-
Sectoral indicators
During FY 2011/12, all sectoral indicators declined except for communications. The sector of services, industrial goods and cars recorded the lowest growth, with a decline of 35.5 percent, followed by travel and leisure (31.6 percent), and basic resources (31.3 percent). The growth of construction and building weakened to a lesser degree (down by 11.3 percent). Conversely, the indicator of communications picked up by 4.1 percent.
Sector
Sectoral Indicator at End of June 2011
Sectoral Indicator at End of June 2012
Change (%) FY
2011/12 Services, industrial goods and cars 1437.84 927.18 -35.5 Travel and leisure 358.00 244.97 -31.6 Basic resources 464.84 319.46 -31.3 Personal and household products 547.31 378.60 -30.8 Financial services (excl.banks) 560.85 418.47 -25.4 Healthcare and pharmaceuticals 1509.97 1146.50 -24.1 Food and beverages 865.79 660.22 -23.7 Chemicals 842.12 701.40 -16.7 Real estate 792.91 669.26 -15.6 Banks 1416.88 1236.05 -12.8 Construction and building materials 1527.23 1353.96 -11.3 Communications 370.95 386.19 4.1
Capital Market General Index & EGX 30 Index
50750
1450215028503550425049505650635070507750
June
2010 Ju
lyAu
g.Se
pt. Oct.
No
v.
Dec.
Jan. 2
011Fe
b.Mar.Ap
r.May
June Ju
lyAu
g.Se
pt. Oct.
No
v.
Dec.
Jan. 2
012Fe
b.Mar.Ap
r.May
June
Point
Capital Market General IndexEGX 30
Closing of the Egyptian Exchange in the w ake
of January 25 Revolution
- 64-
The primary market: the number of new issues approved by EFSA during this year reached 3107, at a total value of LE 38.1 billion (against 2654 issues, at a total value of LE 44.6 billion a year earlier). Issues for new businesses reached 2021 in number (65.0 percent of total issues), at a value of LE 7.2 billion. The number of issues for capital increases reached 1086, with a total value of LE 30.9 billion (81.0 percent of total issues).
The listing activity on the EGX showed that the number of listed
companies rose to 212 at end of June 2012 (from 211 at end of June 2011). The nominal capital of these companies mounted by 3.7 percent to LE 150.1 billion (from LE 144.7 billion). However, their market capitalization declined by 15.0 percent to LE 339.8 billion or 22.0 percent of GDP (against LE 399.8 billion), on the back of the drop in the prices of most shares traded on the EGX.
The value of issued and listed bonds surged by LE 60.5 billion or 26.9
percent in the year under review, posting LE 285.3 billion at end of June 2012 (against LE 224.8 billion a year earlier). That was attributed to the rise of LE 63.8 billion in the value of Egyptian treasury bonds (primary dealers) in the reporting year, to LE 270.6 billion or 94.8 percent of the total value of listed bonds at end of June 2012. In the meantime, corporate and securitization bonds fell by LE 2.4 billion and LE 0.9 billion, respectively.
The secondary market: the number of transactions dropped by 1752 thousand or 24.5 percent to 5408 thousand, and so did the number of traded securities (shares and bonds) by 892 million or 3.8 percent, posting 22.3 billion papers. Their value decreased, as well, by LE 47.7 billion or 23.8 percent, to LE 152.9 billion.
Share transactions accounted for the bulk of trading on the EGX (79.5 percent) in the year under study, against 77.5 percent in the previous FY. Trading in bonds made up the remaining 20.5 percent of the total (against 22.5 percent).
Turning to the market of small and medium enterprises (NILEX), the number of listed companies reached 21, and the market capitalization of listed shares on NILEX amounted to LE 1.1 billion at end of June 2012. Traded securities amounted to 45 million papers, through 19460 transactions, with a total value of LE 182 million.
- 65- Trading in Securities
2008/09 2009/10 2010/11 2011/12 No. of Transactions (000s) 13169 12116 7160 5408
- Shares, bonds and mutual funds’ certificates (listed) 12123 11383 7068 5334
Shares, bonds and mutual funds’ certificates (unlisted) 1046 733 84 54
Small and Medium Enterprises Market (NILEX)* - - 8 20 No. of Traded Securities (mn) 31956 32880 23236 22344
- Shares, bonds and mutual funds’ certificates (listed) 25455 25362 21048 21182
Shares, bonds and mutual funds’ certificates (unlisted) 6501 7518 2166 1117
Small and Medium Enterprises Market (NILEX)* - - 22 45 Value of Transactions (LE mn) 319682 441315 200578 152881
- Shares, bonds and mutual funds’ certificates (listed) 278383 312141 182890 137127
Shares, bonds and mutual funds’ certificates (unlisted) 41299 129174 17460 15572
Small and Medium Enterprises Market (NILEX)* - - 228 182 Source: EFSA- monthly reports of the EGX. *Trading on NILEX started on June 3, 2010.
Foreigners' transactions on EGX stepped down by 12.5 percent below
the previous FY's level, scoring LE 77.7 billion (against LE 88.7 billion). Their transactions resulted in net purchases of LE 14.3 billion (against LE 2.0 billion in the previous FY).
Foreign Investors' Transactions during FY
05
101520253035404550
2010/2011 2011/20120
5000
10000
15000
20000
25000
Sales Purchases Net (right axis)
LE bn LE mn
LE 2.0 bn
LE 14.3 bn
- 66-
Egyptians' trading on EGX accounted for 63.3 percent of total
transactions in FY 2011/2012. On the other hand, dealings of non-Arab foreigners represented 30.2 percent, while those of Arab investors made up 6.5 percent.
3/2- Mutual Funds
The number of mutual funds increased to 85 at end of June 2012 (83 open-end and 2 close-end), from 73 funds at end of June 2011 (70 open-end and 3 close-end).
Egyptian, Foreign & Arab Investors’ Transactions on the Stock Exchange
during FY 2011/2012
Foreigners (Excl. Arabs)
30.2%
Arabs 6.5%
Egyptians63.3%
- 67-
4- Public Finance and Domestic Public Debt 4/1- Consolidated Fiscal Operations of the General Government
According to the state budget for FY 2011/2012, total revenues went up 14.5 percent to LE 303.6 billion, constituting 19.7 percent of GDP, while total expenditures rose 17.2 percent to LE 471.0 billion (30.5 percent of GDP). Accordingly, the overall budget deficit widened by 24.0 percent, compared with the preceding FY, to reach LE 166.7 billion, constituting 10.8 percent of GDP (against some LE 134.5 billion or 9.8 percent of GDP a year earlier). The deficit is a 24.1 percent above the estimated figure for the whole FY. The high deficit and its increasing ratio to GDP was mainly attributed to the fulfillment of factional demands in the aftermath of the 25th January Revolution. Another contributing factor was the drop in public revenues –especially tax revenues– at higher pace than estimated, owing to the fact that investment activities came to a standstill and most foreign investments abandoned the country amid security concerns and labor strikes and sit-ins.
In response to the growing deficit, the government took a number of measures and decisions in the reporting year. On the expenditure side, the government began to restructure subsidies. The first stage of raising energy prices by 25 percent for energy-intensive industries, such as ceramics and cement, was put into effect. Moreover, an austerity plan was launched, through decreasing those expenditures that do not affect key public services by 4 percent, reducing the number of advisors in government administrations and stopping the purchase of new cars. This is besides limiting, to a large extent, official travels to abroad and prohibiting the creation of special accounts or
19.719.322.227.124.7 31.5 33.7
30.329.3 30.5
10.8
6.8 6.98.1
9.8
0.05.0
10.015.020.025.030.035.040.0
2007/2008 2008/2009 2009/2010 2010/2011 2011/20120.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Revenues Expenditures Deficit
% Overall Deficit Ratios of Expenditures, Revenues & Overall Deficit / GDP
(%)
- 68-
funds for any entities/ authorities. Prohibition also extended to the purchase of new office equipment, furniture, or supplies that exceed budget allocations. On the other hand, a particular emphasis was placed on stimulating government investments, especially in key sectors. On the revenues side, the government aimed at tightening the collection of taxes and customs duties, and combating tax evasion, to increase customs and tax proceeds. Moreover, a new tax bracket was introduced in the income tax structure, whereby income tax on the profits of stock corporations and individuals were increased 5 percent, for any taxable income exceeding LE 10 million a year. Also, tax rates on local and imported cigarettes were raised 10 percent, and the limit of tax exemption for salaries was raised from LE 9 thousand to LE 12 thousand per annum. Moreover, given the difficulty of complying with the current rules, tax accounting rules for small businesses were adjusted. In addition, and in order to protect public funds, an electronic tax payment system was activated this season. Steps were also taken to clear tax arrears, especially those of the national press institutions and public business sector companies.
Hereunder is a follow-up of the execution of the consolidated fiscal
operations of the general government in FY 2011/2012, according to the actual data of the Ministry of Finance:
4/1/1- Budget Sector (Administrative System – Local Administration – Service Authorities)
Public revenues increased by some LE 38.3 billion or 14.5 percent in FY
2011/2012, to record LE 303.6 billion (19.7 percent of GDP). The LE 15.3 billion or 8.0 percent pickup in tax revenues, and the LE
14.5 billion rise in excess profit transfers by CBE (reaching LE 15.0 billion, against LE 498 million in the preceding FY) were principally responsible for the increase. Another factor at work was the increase in external grants by LE 7.8 billion. Meanwhile, excess surplus from EGPC retreated by some LE 6.0 billion or 28.5 percent, to post LE 15.0 billion.
- 69- Collected taxes on goods and services went up by LE 8.5 billion or 11.2
percent, on property by LE 3.6 billion or 38.5 percent, on incomes and profits by LE 1.7 billion or 1.8 percent, and on international trade (customs) by LE 930 million or 6.7 percent.
The Relative Structure of Tax Revenues of The Budget Sector 2011/2012
Other Taxes 1.8%
Taxes on Goods & Services 40.8%
Taxes on International Trade
7.1%
Taxes on Property 6.3%
Taxes on Income 44.0%
Total Revenues ,Tax Revenues & Property Income
0 50 100 150 200 250 300 350
2007/2008
2008/2009
2009/2010
2010/2011
2011/2012
Total Revenues Tax Revenues Property Income
(LE bn)
- 70-
Consolidated Fiscal Operations of the General Government (Budget Sector)
(Public Revenues) (LE bn)
2010/2011 2011/2012
Change Change
Actual % (%) Actual % (%) Total Revenues 265.3 100.0 -1.1 303.6 100.0 14.5 Tax Revenues 192.1 72.4 12.7 207.4 68.3 8.0 Taxes on Income and Profits 89.6 33.7 16.9 91.2 30.0 1.8 From EGPC 34.3 12.9 6.6 34.0 11.2 -0.7 From SCA 10.9 4.1 15.4 11.8 3.9 8.3 From CBE 0.0 0.0 0.0 0.0 Other entities 25.3 9.5 36.2 23.7 7.8 -6.5 Payable by Individuals 19.1 7.2 16.2 21.7 7.1 13.9 Taxes on Property 9.5 3.6 7.8 13.1 4.3 38.5 Taxes on Goods and Services 76.1 28.7 13.4 84.6 27.9 11.2 Taxes on International Trade (Customs) 13.9 5.2 -5.7 14.8 4.9 6.7 Other Taxes 3.1 1.2 -6.3 3.7 1.2 19.1 Grants 2.3 0.9 -47.2 10.1 3.3 341.8 Current 0.3 0.1 -89.3 8.5 2.8 3261.5 Capital 2.0 0.8 2.8 1.6 0.5 -19.8 Other Revenues 70.9 26.7 -24.0 86.1 28.4 21.4 Property Income 42.5 16.0 -22.1 57.0 18.8 34.1 From EGPC 21.0 7.9 -17.8 15.0 5.0 -28.5 From SCA 15.2 5.7 19.8 16.1 5.3 5.7 From CBE 0.5 0.2 142.9 15.0 5.0 2914.5 From economic authorities 1.3 0.5 -10.1 2.2 0.7 71.5 From companies 3.3 1.2 -0.2 4.0 1.3 22.2 Others (from EGPC and TML) -2.9 -1.0 -164.3 -0.5 -0.2 -81.7 Others 4.1 1.5 -40.2 5.2 1.7 26.1 Selling Proceeds of Goods and Services 17.4 6.6 1.1 17.8 5.9 2.4 Financial Investments 8.3 3.1 -5.8 6.6 2.2 -21.1 Others 2.7 1.0 -78.9 4.7 1.5 76.5 Source: Ministry of Finance. Percentages are calculated in terms of LE million.
- 71-
As indicated by actual figures, total expenditures increased by LE 69.1 billion or 17.2 percent above the previous fiscal year, registering LE 471.0 billion or 30.5 percent of GDP.
The increase stemmed mainly from wages and compensations of
employees that rose by LE 26.5 billion or 27.6 percent, to stand at LE 122.8 billion, absorbing 40.5 percent of total revenues and accounting for some 28.2 percent of current government spending. Subsidies augmented by LE 23.8 billion or 21.4 percent compared with the previous FY, to LE 135.0 billion, draining 44.5 percent of total revenues.
Interest payments on domestic and external debt accelerated by some LE
19.4 billion or 22.8 percent to LE 104.4 billion, absorbing 34.4 percent of total revenues, and reflecting, as such, the high burden of debt service. In addition, purchases of goods and services went up by LE 678 million or 2.6 percent. However, investments of infrastructure projects have continued to decline since the previous FY, registering a drop of LE 4.0 billion or 9.9 percent to LE 35.9 billion, as the construction of some projects has been suspended since the outbreak of the revolution.
23.3 24.026.1
31.8
36.3
19.821.2 22.2
27.0
32.134.4
40.5
28.130.6
31.9
49.546.4
38.4
15.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
2009/2010 2010/2011 2011/2012 2009/2010 2010/2011 2011/201215.0
20.0
25.0
30.0
35.0
40.0
45.0
50.0
55.0
60.0
Wages & Compensations of Employees Interests Subsidies, Grants and Social Benefits
% Main State Budget Indicators
Percentage(%)/ Expenditures Percentage(%)/ Revenues
- 72-
Consolidated Fiscal Operations of the General Government (Budget Sector)
(Public Expenditures) (LE bn)
2010/2011 2011/2012 Change Change
Actual % (%) Actual % (%) Total Expenditures 401.9 100.0 9.8 471.0 100.0 17.2 Wages &Compensations of Employees 96.3 24.0 12.8 122.8 26.1 27.6 Salaries and wages 78.3 19.5 11.3 99.9 21.2 27.7 Insurance benefits 9.1 2.3 16.0 11.6 2.5 27.3 Other 8.9 2.2 23.6 11.3 2.4 27.0 Purchases of Goods and Services 26.1 6.5 -6.8 26.8 5.7 2.6 Goods 10.0 2.5 -16.6 10.6 2.3 6.2 Services 10.7 2.7 -6.3 11.5 2.4 7.5 Other 5.4 1.3 17.3 4.7 1.0 -13.6 Interests 85.1 21.2 17.6 104.5 22.2 22.8 Foreign interests 3.4 0.9 20.3 3.4 0.8 0.1 Domestic interests 81.7 20.3 17.5 101.1 21.4 23.7
To NIB 19.2 4.8 0.5 20.4 4.3 6.6 To others 62.5 15.5 23.9 80.7 17.1 29.0
Subsidies, Grants and Social Benefits 123.1 30.6 19.6 150.2 31.9 22.0 Subsidies 111.2 27.7 18.9 135.0 28.7 21.4 To GASC 32.7 8.2 94.7 30.3 6.4 -7.5 To EGPC 67.7 16.8 1.7 95.5 20.3 41.2 To Others 10.8 2.7 5.5 9.2 2.0 -15.2 Grants 5.3 1.3 21.4 5.3 1.1 -0.3 Social Benefits 6.1 1.5 36.5 9.4 2.0 53.1
Contribution to SIFs 3.4 0.8 43.3 6.2 1.3 80.3 Other 2.7 0.7 28.7 3.2 0.7 18.2
Other 0.5 0.1 -12.0 0.5 0.1 17.0 Other Expenditures 31.4 7.8 8.5 30.8 6.5 -1.8 Defense 26.5 6.6 12.9 26.0 5.5 -1.8 Other 4.9 1.2 -10.4 4.8 1.0 -2.1 Purchases of Non-Financial Assets (Investments) 39.9 9.9 -17.5 35.9 7.6 -9.9 Fixed assets 33.3 8.3 -15.1 29.0 6.1 -12.9 Others 6.6 1.6 -28.1 6.9 1.5 5.2 Source: Ministry of Finance. Percentages are calculated in terms of LE million.
- 73-
Against this background, the budget showed an overall deficit of LE 166.7 billion or 10.8 percent of GDP in FY 2011/12, against LE 134.5 billion or 9.8 percent of GDP a year earlier. Domestic sources (especially banks’ subscriptions for bonds and TBs) were mainly used to cover the overall budget deficit. In addition, external repayments (roughly LE 9.1 billion worth) and some miscellaneous repayments were made.
. 4/1/2- Budget Sector, NIB and SIFs
When adding the fiscal operations of the NIB and SIFs to those of the
budget sector, collected revenues would surge by LE 45.2 billion to LE 348.9 billion (22.6 percent of GDP). Likewise, public expenditures would rise by LE 45.4 billion to LE 516.4 billion (33.5 percent of GDP).
Accordingly, the overall deficit of the consolidated fiscal operations of the general government reached LE 165.7 billion or 10.7 percent of GDP.
Cash Deficit & Overall Deficit /GDP
10.1
10.9
7.7
6.6
6.4
8.2
6.9
7.5
10.7
9.8
5.05.56.06.57.07.58.08.59.09.5
10.010.511.011.512.0
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Cash Deficit Overall Deficit
%
- 74-
Summary of Consolidated Fiscal Operations of the General Government (Budget Sector, NIB and SIFs)
(LE bn) Actual
2010/2011 2011/2012
Budget Sector %
Consolidated Fiscal
Operations of the General Government %
Budget Sector %
Consolidated Fiscal
Operations of the General Government %
Total Revenues 265.3 302.0 303.6 348.9 Total Expenditures 401.9 440.4 471.0 516.4 Cash Deficit 136.6 138.4 167.4 167.5 Net Acquisition of Financial Assets -2.1 -4.3 -0.7 -1.8 Overall Deficit 134.5 134.1 166.7 165.7 Financing Sources 134.5 100.0 134.1 100.0 166.7 100.0 165.7 100.0 Domestic Financing 144.3 107.3 135.9 101.3 182.4 109.4 184.0 111.1 Banking Financing 109.6 81.5 107.2 79.9 146.4 87.8 145.3 87.7 CBE 22.1 16.4 22.1 16.5 62.6 37.5 62.6 37.8 Other banks 87.5 65.1 85.1 63.4 83.8 50.3 82.7 49.9 Non-Banking Financing 34.7 25.8 28.7 21.4 36.0 21.6 38.7 23.4 NIB 1.9 1.4 0.0 0.0 -1.7 -1.0 0.0 0.0 SIFs 10.9 8.1 0.0 0.0 1.5 0.9 0.0 0.0 Other 21.0 15.7 21.1 15.7 37.6 22.5 37.6 22.7 NIB borrowing 0.0 0.0 6.7 5.0 2.5 1.5 Special accounts for economic authorities 0.9 0.7 0.9 0.7 -1.4 -0.8 -1.4 -0.8 Blocked Account Used in Amortizing Part of CBE Bonds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 External Borrowing 5.0 3.7 5.0 3.7 -9.1 -5.4 -9.1 -5.5 Arrears 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Others, of which; 3.6 2.7 11.6 8.7 0.6 0.4 -2.0 -1.2 Special accounts for budget entities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Financing Effects for Eliminations 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Exchange Rate Revaluation 3.9 2.9 3.9 2.9 1.5 0.9 1.5 0.9 Net Privatization Proceeds 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Difference between Treasury Bills Face Value & Present Value -7.4 -5.5 -7.4 -5.5 -11.3 -6.8 -11.3 -6.9 Foreign Debt Reclassification Differences and Related FX Differences 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Discrepancy -14.9 -11.1 -14.9 -11.1 2.6 1.5 2.6 1.6 Source: Ministry of Finance. Percentages are calculated in terms of LE million.
The overall deficit of the consolidated fiscal operations of the general
government was mainly financed from local sources. External repayments of LE 9.1 billion worth were made.
- 75-
4/2- Domestic Public Debt
- Gross Domestic Public Debt
At end of June 2012, domestic public debt amounted to LE 1238.1 billion, or 80.3 percent of GDP at current market prices, up by LE 193.2 billion or 18.5 percent during FY 2011/2012. The balance of the domestic public debt equals the sum of net government debt, public economic authorities' debt and debt of the National Investment Bank (NIB), minus the intra-debt of public economic authorities and the government to NIB.
4/2/1- Debt of the Government (Net)
Net government domestic debt registered LE 990.5 billion (64.2 percent
of GDP) at end of June 2012, up by LE 182.4 billion or 22.6 percent in FY 2011/2012. The rise was a confluence of the LE 161.2 billion increase in the balances of treasury bonds and bills, and the LE 10.6 billion decline in the net credit position of the government at the banking system (as government loans and deposits grew by LE 16.2 billion and LE 5.6 billion, respectively). Add to this the increase in government loans from other local entities by LE 11.0 billion and the issuance of the Masri Dollar Certificate∗ at a value of LE 0.2 billion worth. In the meantime, credit facilities from the SIFs decreased by LE 0.6 billion. ∗ In order to support the Egyptian economy and finance the development plan, the National Bank of Egypt
issued a new US dollar certificate in May 2012 for Egyptians resident abroad to invest their savings in the Egyptian market. The Masri dollar certificate is a three-year certificate with a 4% annual return, and is not redeemable in the first six months. Its minimum purchase value is US$ 1000, and has no ceiling.
990.5
63.1
251.0
-66.5
1238.1
-200 0 200 400 600 800 1000 1200 1400
Net Domestic Debt ofGovernment
Net Debt of EconomicAuthorities
NIB Debt (Net)
Intra-Debt
Gross Domestic Debt
Gross Domestic Public Debt at End of June 2012 (LE bn)
- 76-
Domestic Debt of the Government (Net) (LE bn)
Balances at End of June 2011 June 2012 Value % Value %
Change + (-)
2011/2012Government Domestic Debt (Net) 808.1 100.0 990.5 100.0 182.4 - Balances of Bonds & Bills* 917.0 113.5 1078.2 108.9 161.2
• Bonds, of which: 560.9 69.4 669.6 67.6 108.7 Tradable on the exchanges 218.4 27.0 278.8 28.1 60.4
• Treasury bills 356.1 44.1 408.6 41.3 52.5 - Credit Facilities from SIFs 2.3 0.3 1.7 0.2 -0.6 - Borrowing from Other Entities 2.0 0.2 13.0 1.3 11.0 - Masri Dollar Certificate 0.0 0.0 0.2 0.0 0.2 - Net Balances at the Banking System -113.2 -14.0 -102.6 -10.4 10.6
• Credit facilities 46.0 5.7 62.2 6.2 16.2 • Deposits (-) 159.2 19.7 164.8 16.6 5.6
Net Government Domestic Debt/ GDP (%) 58.9 64.2
Source: Ministry of Finance, CBE and NIB Ratios are calculated in terms of LE million. * Including treasury bonds; housing bonds; bonds denominated in foreign currencies with public
commercial banks; the 5 percent ratio retained from profits of corporations subject to Law No. 97 for 1983 for the purchase of government bonds; holdings of resident financial institutions in Egypt (the banking system and insurance sector) of bonds floated abroad; and the SIFs’ bonds against the transfer of NIB debt to the Public Treasury.
The LE 161.2 billion rise in the balance of government bonds and bills
was an outcome of:
A- The pickup in the balance of government bonds by LE 108.7 billion, to LE 669.6 billion at end of June 2012, as a result of:
1- The LE 63.8 billion rise in the balance of Egyptian treasury bonds in FY
2011/2012, due to: - The issuance of the 66th tranche of three-year bonds on 3 April 2012, at a
value of LE 2.0 billion and an annual interest rate of 16.15 percent. Afterwards, the value of this tranche was increased by LE 8.0 billion (LE 2.0 billion in April, LE 4.0 billion in May and LE 2.0 billion in June 2012) on the same conditions of issuance, bringing its total value to LE 10.0 billion.
- 77-
- The issuance of the 67th tranche of seven-year bonds on 3 April 2012, at a value of LE 1.0 billion, and an annual interest rate of 16.85 percent. The value of this tranche was then increased by LE 4.5 billion (LE 3.5 billion in May and LE 1.0 billion in June 2012) on the same conditions of issuance, bringing its total value to LE 5.5 billion.
- The issuance of the 68th tranche of ten-year bonds on 3 April 2012, at a
value of LE 1.0 billion, and an annual interest rate of 17.0 percent. The value of this tranche was increased by LE 3.0 billion (LE 1.0 billion in April, LE 1.0 billion in May and LE 1.0 billion in June 2012) on the same conditions of issuance, raising its total value to LE 4.0 billion.
- The issuance of the 69th tranche of five-year bonds on 10 April 2012, at a
value of LE 1.5 billion, and an annual interest rate of 16.55 percent. The value of this tranche was then increased by LE 5.5 billion (LE 1.5 billion in April, LE 2.5 billion in May, and LE 1.5 billion in June 2012) on the same conditions of issuance, bringing its total value to LE 7.0 billion.
- The issuance of treasury bonds at a value of LE 54.3 billion in July/March
2011/2012. - The redemption of LE 17.0 billion of Egyptian treasury bonds (the 11th
tranche on 26 October 2011, at a value of LE 5.0 billion; the 36th tranche on 13 January 2012, at a value of LE 6.0 billion; and the 39th tranche on 28 April 2012, at a value of LE 6.0 billion).
2- The issuance of three-year treasury bonds at a value of LE 50.0 billion and
an annual interest rate of 16.21 percent on 30 June 2012. 3- The reduction in the value of treasury bonds (non-interest bearing) issued
on 1 July 2009 by LE 1.5 billion in August 2011, followed by another reduction of LE 266 million in June 2012, bringing their value to LE 7.3 billion.
4- The increase of LE 0.3 billion worth in the balance of LE bonds floated
abroad. 5- The decrease in the balance of bonds tradable abroad in US dollar by the
equivalent of LE 3.7 billion, as the second tranche thereof reached maturity in July 2011.
- 78- 6- The LE 0.1 billion pickup in the balance of the 5 percent ratio retained
from profits of corporations for the purchase of government bonds.
B- The rise of LE 52.5 billion in the outstanding balance of treasury bills, to stand at LE 408.6 billion at end of June 2012, as a result of:
- The issuance of 363-day TBs in US dollar on 16 May 2012, at a value of
LE 6.2 billion worth, and on 22 June at a value of LE 3.2 billion worth, in addition to the TBs issued earlier during July/March in the amount of LE 25.8 billion, thus driving their total balance to LE 35.2 billion at end of June 2012.
- The rise of LE 17.3 billion in the outstanding balance of public treasury
bills, issued in Egyptian pound, thereby increasing the balance of these bills to LE 373.4 billion at end of June 2012, compared with LE 356.1 billion at end of June 2011.
4/2/2- Debt of Public Economic Authorities (Net)
In FY 2011/2012, the debt of public economic authorities (net) scaled down by LE 3.2 billion ending the year at LE 63.1 billion. The decline was a result of the decrease in their net borrowing from the banking system by LE 3.7 billion (mainly due to the fall of LE 3.7 billion in their claims and of only LE 23 million in their deposits), along with the rise of LE 0.5 billion in their borrowing from the NIB.
Net Domestic Debt of Government
-200.00.0
200.0400.0600.0800.0
1000.01200.0
June 2010 June 2011 June 2012 0.010.020.030.040.050.060.070.0
Treasury BillsBonds & Other Credit FacilitiesNet Government Balances with the Banking SystemRatio of Government Debt /GDP
%LE bn
- 79- 4/2/3- Debt of the NIB (Net)
Net debt of NIB (including the intra-debt) mounted by some LE 12.8
billion in the reporting year, to stand at LE 251.0 billion at end of June 2012. The rise reflected the expansion in NIB total invested resources by LE 12.8 billion to post some LE 253.7 billion at end of June 2012, and the retreat in its deposits with the banking system by LE 21 million. 4/2/4- Intra-Debt
The intra-debt of public economic authorities and the government to NIB
amounted to LE 66.5 billion at end of June 2012 (against LE 67.7 billion at end of June 2011). Loans granted by NIB to these authorities accounted for LE 52.6 billion, with an increase of LE 0.5 billion in the year under review. The NIB's investments in government securities (bills and bonds) registered LE 13.9 billion, down by LE 1.7 billion in FY 2011/2012.
Loans to Holding Companies & Affiliate Units, Concessional
Lending & Others 184.5
Deposits with the Banking System
2.7Inv estment in
Treasury Bills & Bonds 13.9
Loans to Economic
Authorities 52.6
Uses of the NIB at End of June 2012(LE bn)
Proceeds of Investment
Certificates & Accumulated
Interest 105.9
Post Office Saving Account
78.9
Dollar Development
Bonds &Others 4.1
Social Insurance
Funds 64.8
Resources of the NIB at End of June 2012 (LE bn)
- 80-
5- External Transactions
5/1- Foreign Exchange Market and NIRs
The Central Bank of Egypt continued its successful management of the forex market through the dollar interbank system, which proved highly instrumental in cushioning the market against the shortage in foreign currency liquidity, and in turn preventing any drastic volatility. This helped soothe dealers' concerns over the exchange rate fluctuations, especially after large investments had abandoned the country and tourism revenues had plunged amid the political circumstances in Egypt. The weighted average of the US dollar interbank rate posted LE 6.0590 at end of June 2012 (against LE 5.9690 at end of June 2011) with a 1.5 percent drop in the value of the Egyptian pound. While the report was under preparation, the Egyptian pound slided further (2.3 percent below the end of June 2011 level), thus bringing the US dollar exchange rate to LE 6.1113 at end of November 2012.
In FY 2011/2012, the volume of transactions in the dollar interbank market amounted to US$ 36.4 billion (against US$ 53.9 billion a year earlier). Purchases and sales of private sector banks accounted for 96.26 percent and 85.54 percent, respectively. Thus, the total volume of trade in the interbank market posted US$ 337.4 billion since its inception at the end of 2004 up to the end of June 2012.
Volume of Dealing and Weighted Average of US Dollar Exchange Rate in the Interbank Market
-2.04.06.08.0
10.012.014.016.018.020.0
Q1_10/11 Q2_10/11 Q3_10/11 Q4_10/11 Q1_11/12 Q2_11/12 Q3_11/12 Q4_11/125.20
5.40
5.60
5.80
6.00
6.20
Volume of dealing (during Q) Exchange rate (end of Q)
L.EUS$ bn
- 81-
CBE resources of foreign currencies increased to US$ 19.39 billion during FY 2011/2012 (from US$ 17.16 billion a year earlier), while uses reached US$ 31.31 billion (against US$ 33.37 billion).
Net international reserves (NIR) dropped by some US$ 11.1 billion or 41.5 percent in the reporting year, to US$ 15.5 billion at end of June 2012 (from US$ 26.6 billion at end of June 2011). This was a chief result of the country’s resort to the NIR, at this particular juncture, to make up for the contraction in foreign investments in treasury bills and securities on the Egyptian Exchange and the fall in tourism revenues and foreign direct investment. NIR covered 3.2 months of merchandise imports at end of June 2012. At the time of preparing the Report, the NIR reached US$ 15.0 billion at end of November 2012, thereby covering 3.3 months of merchandise imports.
Net International Reserves & Months of Merchandise Imports End of June
06
1218243036
2006 2007 2008 2009 2010 2011 2012
(US$ bn)
0.0
2.0
4.0
6.0
8.0
10.0
NIR NIR/Months of Merchandise Imports
( Months )
- 82-
5/2 - Balance of Payments*
In FY 2011/2012, Egypt’s BOP ran a wider overall deficit of US$ 11.3 billion (against US$ 9.8 billion in FY 2010/2011). The negative effects of the current events continued to weigh heavily on tourism revenues and foreign investments, as follows: • Tourism revenues shrank by 11.0 percent scoring US$ 9.4 billion (against
US$ 10.6 billion), because of the decline in the average spending of a tourist per night to US$ 72.2 in July/Sept. 2011/2012, US$ 69.6 in Oct./March and US$ 74.4 in April/June (against US$ 85.0 in the previous FY). Hence, that had a large role to play in driving up the BOP current account deficit to US$ 7.9 billion (against US$ 6.1 billion).
• The net outflows of portfolio investments in Egypt doubled to US$ 5.0 billion in FY 2011/2012 (against US$ 2.6 billion in the previous FY).
However, the rise in net unrequited transfers was one of the positive factors that subdued the widening of the overall BOP deficit during the year under review. In figures, net unrequited transfers picked up to US$ 18.4 billion (against US$ 13.1 billion a year earlier), owing to the 43.5 percent surge in net private transfers (mainly remittances of Egyptians working abroad) to US$ 17.8 billion, contributing 7 percent of the GDP. ___________________ * Based on the IMF’s BOP manual, fifth Edition, Sept.1993.
BOP Main Components
‐7000‐5000‐3000‐100010003000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
(US$ mn)
Capital & Financial A/C Current Account
Remittances of Egyptians Working Abroad as a Percentage of GDP
2.0
1.31.3 1.21.5
1.51.61.9
0
0.5
1
1.5
2
2.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
%
- 83-
Hereunder a detailed review of the BOP developments during FY 2011/2012 in comparison with FY 2010/2011 : 5/2/1- Current Account
The current account deficit soared by 30.2 percent registering US$ 7.9
billion during the reporting year (against US$ 6.1 billion in the year of comparison), because of the following developments: 5/2/1/1 - Trade Balance
The trade deficit accelerated by
17.0 percent in FY 2011/2012, posting US$ 31.7 billion (against US$ 27.1 billion), representing 12.3 percent of the GDP, as an outcome of the 8.5 percent rise in merchandise import payments to US$ 58.7 billion. Meanwhile, merchandise ex-ports slightly dec-lined by 0.1 percent to US$ 27.0 billion.
Hereunder, is a detailed review
of external trade: 5/2/1/2 - Balance of Services and Income, and Net Transfers
A) Balance of Services and Income:
The surplus of the balance of services and income retreated by 31.9 percent to US$ 5.4 billion in FY 2011/2012 (against US$ 7.9 billion). The decline came on the back of the drop in services receipts by 4.6 percent, and the rise of services payments by 10.8 percent, as a reflection of the following:
Trade Balance6.1 6.6 6.2 6.8 6.8 6.5 6.9
‐13.2 ‐13.9 ‐12.4‐14.5 ‐14.6 ‐14.6 ‐14.4 ‐15.1
8.1
‐7.1 ‐7.3 ‐6.2 ‐6.4 ‐7.8‐7.8 ‐7.9 ‐8.2
‐20.0‐18.0‐16.0‐14.0‐12.0‐10.0‐8.0‐6.0‐4.0‐2.00.02.04.06.08.0
10.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
(US$ bn)
Merchandise Exports Merchandise ImportsTrade balance
Services & Income Balance
‐6.0
‐4.0
‐2.0
0.0
2.0
4.0
6.0
8.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
(US$ bn)
Services Receipts Services Payments
Services & Income Balance
- 84- - Receipts from Services and income plunged by US$ 1.0 billion, posting US$ 20.9 billion during the year under review, due to the decline of most of its items, particularly the following:
• Travel receipts (tourism revenues)∗ rolled back by 11.0 percent to
US$ 9.4 billion (against US$ 10.6 billion). The retreat was chiefly attributed to the fall in the average spending of a tourist per night to US$ 72.2, US$ 69.6, and US$ 74.4, respectively, during the periods July/Sept., Oct./March, and April/June of FY 2011/2012 (against US$ 85.0 in 2010/2011).
• Other services receipts scaled down by 12.4 percent to US$ 2.3 billion
(against US$ 2.7 billion), as a result of the drop of construction and contracting services receipts, legal and consultation fees, communication services receipts, and agencies' commissions and fees.
• Investment income receipts fell to US$ 246.1 million (from US$ 418.8
million), on account of the drop in interest payments and dividends of bonds and securities, as well as receipts from both direct investment income and other investment income (interest payments on deposits abroad).
On the other hand, the following rises were observed:
• Transportation receipts stepped up by 6.4 percent scoring US$ 8.6
billion, partly due to the rise of 37.0 percent in the receipts of freight transportation by Egyptian navigation and aviation companies, to US$ 2.0 billion. Another factor at work was the pickup of 3.1 percent in Suez Canal receipts, to US$ 5.2 billion.
• Government receipts mounted to US$ 276.2 million (from US$ 117.7
million), due to the rise in the other government receipts and the expenses of the Arab League and international institutions resident in Egypt.
∗ Calculated on the basis of number of tourist nights of departures multiplied by the average spending of a tourist per night.
- 85-
- Services payments and income went up by 10.8 percent, registering US$ 15.5 billion (against US$ 14.0 billion), reflecting the following rises:
• Investment income payments scaled up by 7.4 percent to US$ 6.9
billion, primarily because of the rise in the profit transfers of foreign oil companies.
• Other services payments rose 21.1 percent to US$ 3.5 billion, on the
back of the increase in the amounts transferred abroad by foreign oil companies, in royalties and licensing fees, and communication service payments.
• Travel payments surged by 18.2 percent to US$ 2.5 billion, because of
the rise in lottery pilgrims’ fees, visa card payments, tourism and medical expenses, and tuition fees abroad.
• Government expenditures increased 4.1 percent to US$ 1.2 billion,
due to the pickup in the salaries and expenses of government employees seconded abroad.
Investment Income Balance
‐2400‐2200‐2000‐1800‐1600‐1400‐1200‐1000‐800‐600‐400‐200
0200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
(US$ mn)
Investment Income Receipts Investment Income Payments Investment Income Balance
- 86- On the other hand, each of the following declined:
• Transportation payments mildly scaled down by 0.8 percent to US$ 1.4 billion, on account of the drop in the amounts transferred by Egyptian navigation companies, passenger transportation services by foreign aviation companies, payments for SOMID pipeline services' payments, and external transfers for renting planes from abroad and ports' services.
B) Net Unrequited Transfers:
Unrequited transfers (net basis) surged by 40.1 percent to US$ 18.4 billion in FY 2011/2012 (against US$ 13.1 billion in the previous FY), reflecting the following developments:
- The pickup of 43.5 percent in
net private transfers, which recorded US$ 17.8 billion (against US$ 12.4 billion), denoting above all the surge of 42.7 percent in workers' remittances.
Transfers Development
3.2
3.1
2.8
4.0
4.0
4.4
4.9
5.1
0.0 1.0 2.0 3.0 4.0 5.0 6.0
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2010
/11
2011
/12
(US$ bn)
Development of Services Balances (Surplus/Deficit)
‐1.0
0.0
1.0
2.0
3.0
4.0
5.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
(US$ bn)
Transportation Services Travel Services Government Services Other Services
- 87- - The decline of net official transfers to US$ 632.4 million (against US$ 752.9 million), due to the decrease in cash and merchandise grants to the Egyptian government.
Unrequited Current Transfers (Net)
(US$ mn) Change
2010/2011 2011/2012 Value %
Unrequited Current Transfers )Net( 13136.8 18408.0 5271.2 40.1
)c-b+a(Official Transfers Net -1 752.9 632.4 120.5- 16.0- a- Inflows of cash grants 532.9 519.5 -13.4 -2.5 b- Other inflows of grants 249.6 174.5 -75.1 -30.1 c- Outflows of official transfers 29.6 61.6 32.0 108.1
)c-b+a(Private Transfers Net -2 .912383 17775.6 5391.7 43.5 a- Workers' remittances 12592.6 17970.9 5378.3 42.7 b- Other transfers 85.6 112.7 27.1 31.7 c- Private transfers abroad 294.3 308.0 13.7 4.7
The above developments in the items of the current account balance
during the year under review led to a 30.2 percent rise in the current account deficit, to hit US$ 7.9 billion (against US$ 6.1 billion a year earlier), representing 3.1 percent of GDP. The higher deficit came on the back of the 9.0 percent pickup in current payments, to US$ 74.2 billion (against US$ 68.1 billion), and the rise of 6.9 percent in current receipts, to US$ 66.3 billion (against US$ 62.0 billion). Hence, the coverage ratio of current receipts to current payments was influenced. 5/2/2 - Capital and Financial Account
In 2011/2012, the capital and financial account recorded a net outflow of
US$ 1.4 billion (against US$ 4.2 billion), as a confluence of the following factors:
- 88-
1- The net outflow of portfolio investment∗ in Egypt almost doubled to US$ 5.0 billion (against US$ 2.6 billion), after foreigners had sold their holdings of securities (especially Egyptian TBs), which brought about net sales of US$ 4.0 billion (against US$ 3.1 billion a year earlier). In addition, foreigners' transactions in the stock market switched into net sales of US$ 1.1 billion (against net purchases of US$ 316.7 million).
2- Foreign direct investment in Egypt unfolded a net inflow of US$ 2.1
billion (against US$ 2.2 billion the previous FY), because:
• Greenfield investments unfolded a net inflow of US$ 2.1 billion (against US$ 2.2 billion) in FY 2010/2011;
• Investments in the oil sector registered a net outflow of US$ 1.8
billion (against US$ 191.3 million); and • Proceeds from selling companies and productive assets to non-
residents jumped to US$ 1.7 billion (from US$ 19.2 million).
The following table illustrates the sectoral distribution of total FDI flows to Egypt during the years of reporting and comparison. The data shows that the petroleum sector attracted the major share of those flows (60.3 percent), followed by the services sector (18.7 percent); especially communications, manufacturing (6.2 percent), construction (1.1 percent), and agriculture (0.7 percent):
∗ Represents foreigners' net transactions in securities and Egyptian bonds and notes.
Development of Foreign Investment in Egypt
1.9
-0.5
0.4 0.6
-0.9
0.1
-0.2
0.71.6
-5.5
-1.7-1.6-1.3 -1.3-1.6
5.9
-8.0
-4.0
0.0
4.0
8.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2010/2011 2011/2012
(US$ bn)
Net FDI in Egypt Net Portfolio Investment in Egypt
- 89-
(US$ mn) Economic Activity Sectors 2010/2011 Share
(%) 2011/2012 Share
(%) Total FDI Flows to Egypt 9574.4 100.0 11768.1 100.0 Oil 7014.7 73.3 7101.0 60.3 Manufacturing 803.9 8.4 732.6 6.2 Agriculture 30.4 0.3 80.7 0.7 Construction 108.8 1.1 127.2 1.1 Services, of which: 620.2 6.5 2196.6 18.7
Real estate 134.0 1.4 86.2 0.7 Finance 114.0 1.2 212.7 1.8 Tourism 158.0 1.6 41.7 0.4 Communications & IT 7.0 0.1 1390.9 11.8 Other services 207.2 2.2 465.1 4.0
Undistributed 996.4 10.4 1530.0 13.0 3- Other assets and liabilities (the change in banks’ foreign assets and liabilities;
the CBE non-reserve foreign assets and foreign liabilities; and the counterpart to some items included in the current account) posted a net inflow of US$ 2.1 billion (against a net outflow of US$ 4.2 billion in the previous FY), as an outcome of the drop in the foreign assets of Egyptian banks by US$ 4.4 billion, and the rise of the CBE’s foreign obligations by US$ 1.0 billion.
4- Medium- and long-term loans and facilities revealed a decrease in the net
repayments to US$ 664.3 million (from US$ 891.8 million), as an outcome of the increase in total disbursements to US$ 1.4 billion (from US$ 1.2 billion), while total repayments maintained the same level of US$ 2.1 billion.
- 90-
5/3 - External Trade In FY 2011/2012, the volume of trade increased 5.6 percent, posting US$
85.6 billion (33.4 percent of GDP) against US$ 81.1 billion in the previous FY. Exports slightly retreated by 0.1 percent and imports moved up by 8.5 percent. Accordingly, the trade deficit widened by 17.0 percent to US$ 31.7 billion (12.3 percent of GDP) against US$ 27.1 billion. Moreover, the coverage ratio of exports to imports declined from 49.9 percent to 46.0 percent. 5/3/1 - Structure of Export Proceeds and Import Payments First: Merchandise Exports
Exports• slightly decreased 0.1 percent to US$ 27.0 billion reflecting the 6.8 percent fall in non-oil exports to US$ 13.9 billion and the 8.2 percent hike in oil exports to US$ 13.1 billion.
Oil & Non-Oil Exports Fiscal Year
0.0
5.0
10.0
15.0
20.0
25.0
30.0
2009/2010 2010/2011 2011/2012
Oil Exports Non -Oil Exports Total Exports
US$ bn
On the back of the rise in oil exports, exports of fuel, mineral oils and products mounted by 7.1 percent during the year under review. By contrast, non-oil exports decreased as exports of raw materials fell 17.3 percent, semi-finished products 6.7 percent, and finished goods 4.6 percent.
• Table (5/2) in the statistical annex shows the distribution of merchandise exports.
- 91-
Exports by Degree of Processing Fiscal Year
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
16.0
Fuel & Mineral Oils Raw Materials Semi - Finished Goods Finished Goods
2009/2010 2010/2011 2011/2012
US$ bn
A) Fuel, Mineral Oils and Products (50.1 percent of total exports)
Exports of fuel, mineral oils and products inched up 7.1 percent to US$ 13.5 billion (against US$ 12.6 billion) owing to the rise in crude oil exports (25.7 percent) and the decline in those of oil products (7.1 percent). Exports of crude oil and products amounted to US$ 13.1 billion representing 97.2 percent of the group's total exports. The pickup in oil exports was traced to the hike in world average prices of oil, scoring US$ 111.97 a barrel (against US$ 96.4 a barrel). B) Raw Materials (4.3 percent of total exports)
Exports of raw materials rolled back by 17.3 percent to stand at US$ 1.2 billion (against US$ 1.4 billion). The decline was ascribed to the drop in the exports of cotton by 38.3 percent, in edible fruits and nuts by 30.4 percent, and in vegetables and plants, fresh, chilled or frozen by 21.5 percent. C) Semi-Finished Goods (7.2 percent of total exports)
Exports of this group retreated 6.7 percent to US$ 1.9 billion (against US$ 2.1 billion), driven by the declines in the exports of synthetic fibers (57.3 percent), cotton yarn (56.3 percent), and cast iron, semi-finished products and rolled iron (15.6 percent).
- 92-
D) Finished Goods (38.4 percent of total exports)
Exports of finished goods shrank by 4.6 percent to US$ 10.4 billion
(against US$ 10.9 billion), due to the lower exports of iron and steel products (46.4 percent), fertilizers (24.8 percent), and pharmaceuticals (20.0 percent). Second: Merchandise Imports
Imports increased 8.5 percent to US$ 58.7 billion (against US$ 54.1 billion).
The following chart shows the development of import payments on a
quarterly basis.
02468
10121416
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
2008/2009 2009/2010 2010/2011 2011/2012
Payments for Merchandise Imports US$ bn
Imports° of most merchandise groups increased. In detail, imports of fuel,
mineral oils and products mounted by 30.7 percent, consumer goods by 11.3 percent, and intermediate goods by 6.9 percent. Imports of raw materials also moved up by 4.1 percent. By contrast, imports of investment goods decelerated by 7.4 percent.
° Table (5/3) in the statistical annex shows the distribution of merchandise imports.
- 93-
-20.0
-15.0
-10.0
-5.0
0.0
Fuel, Mineral Oils &
Products
Raw MaterialsIntermediateGoods
InvestmentGoods
ConsumerGoods
Imports by Degree of Use Fiscal Year
2009/2010 2010/2011 2011/2012
US$ bn
A) Fuel, Mineral Oils and Products (16.8 percent of total imports)
Imports of fuel, mineral oils and products rose 30.7 percent to US$ 9.9
billion (from US$ 7.6 billion). Oil products surged by 40.4 percent constituting 98.5 percent of the total imports of the group. B) Raw Materials (13.8 percent of total imports)
Imports of raw materials stepped up 4.1 percent to US$ 8.1 billion (from US$ 7.8 billion). The rise was explained by the hike in the imports of maize (73.1 percent); iron ores (64.4 percent); and oil seeds and oleaginous fruits (25.6 percent). The key imports were wheat, crude oil, maize, iron ores, oil seeds and oleaginous fruits, and tobacco. C) Intermediate Goods (28.8 percent of total imports)
Imports of intermediate goods climbed by 6.9 percent to US$ 16.9 billion (from US$ 15.8 billion). The rise was traced to an acceleration in the imports of raw sugar (175.4 percent); rubber and products (35.6 percent); organic and inorganic chemicals (20.9 percent); and animal and vegetable fats, greases and oils and products (20.9 percent). The basic imports were iron and steel products; organic and inorganic chemicals; animal and vegetable fats, greases and oils and products; car spare parts and accessories; plastics and articles thereof; wood and articles thereof; and paper, cardboard, and paper products.
- 94- D) Investment Goods (16.5 percent of total imports)
Imports of this group decelerated 7.4 percent to US$ 9.7 billion (from US$ 10.4 billion). The decline was particularly manifest in the imports of passenger vehicles (59.3 percent); agricultural machinery (42.3 percent); railway and tramway locomotives or rolling stock equipment and parts thereof (32.3 percent); and machines and apparatus for ginning and spinning and parts thereof (28.1 percent); bulldozers and cranes (25.4 percent); air conditioners (21.0 percent); and goods-transport vehicles (19.3 percent). The imports of this group were mainly cranes and bulldozers; electric appliances for telephones and telegraph; motors, generators, transformers and parts thereof; computers; pumps, fans, and parts thereof; and optical appliances.
E) Consumer Goods (23.3 percent of total imports)
Imports of consumer goods increased 11.3 percent to US$ 13.7 billion (from US$ 12.3 billion). The pickup was traced to the surge in the imports of non-durable goods by 13.4 percent to US$ 10.7 billion. The increase in non-durable goods was largely pronounced in the imports of soaps and waxes (70.4 percent); cotton textiles (35.3 percent); dairy products (33.1 percent); and ready-made clothes (25.9 percent). The major imports were pharmaceuticals; ready-made clothes; miscellaneous edible preparations; meat; cotton textiles; and edible vegetables, roots and tubers.
Imports of durable goods climbed 4.4 percent to US$ 3.0 billion because of
the rise in the imports of televisions and parts thereof (40.5 percent); and household electric-motor appliances (14.4 percent). The chief imports were cars for the transport of passengers; household electric-motor appliances; televisions and parts thereof; and household refrigerators and electric freezers.
5/3/2 - Sectoral Distribution of Merchandise Transactions
The share of the private sector moved up 3.4 percent to US$ 51.8 billion,
representing 60.5 percent of the total volume of trade. Ranking second, with a share of 32.0 percent, the public sector's trade volume rose 17.2 percent to US$ 27.4 billion. The investment sector came third (7.5 percent) as its volume of trade declined 15.5 percent to US$ 6.4 billion.
- 95-
The sectoral distribution of export proceeds relatively changed in FY 2011/2012. The public sector's share in total exports scaled up to 47.2 percent (from 42.4 percent). By contrast, those of the private and investment sectors retreated to 44.6 percent and 8.2 percent from 46.4 percent and 11.2 percent, respectively.
The public sector's share in total imports also mounted to 25.1 percent
(from 22.1 percent). On the other hand, the share of the private sector decelerated from 69.4 percent to 67.7 percent and of the investment sector from 8.5 percent to 7.2 percent. A- The Private Sector
Imports of the private sector scaled up 5.9 percent to US$ 39.7 billion (from US$ 37.5 billion). Intermediate goods represented 36.7 percent of its total imports. The key imports were iron and steel products; pharmaceuticals; organic and inorganic chemicals; wheat; plastics and articles thereof; car spare parts and accessories; wood and articles thereof; oil products; and cranes, bulldozers, and parts thereof.
By contrast, exports of the private sector rolled back 3.9 percent to US$ 12.0 billion (against US$ 12.5 billion) as the exports of all groups declined. Finished goods made up 76 percent of the total exports of this sector. The major exports were fertilizers; ready-made clothes; organic and inorganic chemicals; cotton textiles; soap, detergents, and artificial waxes; miscellaneous edible preparations; and pharmaceuticals; plastics and articles thereof; glass and products; cast iron and semi-finished goods; copper and products; paper, cardboard, and paper products; and iron and steel products. B- The Public Sector
Exports of the public sector edged up 11.2 percent to US$ 12.7 billion (against US$ 11.5 billion) due to the higher exports of crude oil and products (95.8 percent of its total exports). The most salient exports of this sector were aluminum articles; unalloyed aluminum; cotton; cast iron, semi-finished products, and rolled iron; cotton yarn; fertilizers; plastics and articles thereof; iron and steel products; and cotton textiles.
- 96- The imports of this sector also edged up 23.0 percent to US$ 14.7 billion
(from US$ 12.0 billion). Of the total imports of this sector, fuel, mineral oils and products constituted 57.6 percent. The major imports were crude oil and products; wheat; motors, generators, transformers and parts thereof; animal and vegetable fats, greases and oils and products; pharmaceuticals; raw sugar; and railway and tramway locomotives or rolling stock equipment and parts thereof.
C-The Investment Sector
Exports of the investment sector went down by 26.8 percent to US$ 2.2 billion (from US$ 3.0 billion) as the exports of all groups decreased. Fuel, mineral oils and products constituted 43.1 percent of its total exports. The most salient exports were oil products; ready-made clothes; cast iron and semi-finished goods; cotton textiles; carpets and other floor coverings; organic and inorganic chemicals; ceramic products; pharmaceuticals; and iron and steel products.
Imports of the investment sector rolled back as well by 8.2 percent to US$
4.2 billion (against US$ 4.6 billion). Intermediate goods constituted 33.0 percent of its total imports. The imports were mainly crude oil and products; maize; animal and vegetable fats, greases and oils and products; car spare parts and accessories; and edible vegetables, roots and tubers; pumps and fans and parts thereof; cranes and bulldozers and parts thereof; iron and steel products; and iron ores.
5/3/3 - Geographical Distribution∗ of Merchandise Transactions
The trade exchange between Egypt and most of the economic groupings
increased during the year under review. The EU came first accounting for 35.3 percent of the total volume of trade. The Asian countries came next with 19.0 percent, then the Arab countries with 18.1 percent. By contrast, the trade exchange with the USA and African countries declined.
First: Merchandise Exports:
According to main economic groupings, the exports of all groupings declined except for the Arab and Asian countries. The EU ranked first (40.7 percent of total exports), followed by the Arab countries (19.7 percent), and the
∗ Table (5/4) in the statistical annex illustrates the geographical distribution of imports and exports.
- 97-
Asian countries (17.1 percent). Concerning main trade partners, Italy ranked first, followed by the USA, India, UAE, and UK (with a combined share of 51.5 percent of total export proceeds).
0
2
4
6
8
10
12
14
EU Other EuropeanCountries
RussianFederation &
C.I.S
USA Arab Countries Asian Countries African Countries Australia & OtherCountries
2010/2011 2011/2012
Exports by Geographical Distribution Fiscal YearUS$ bn
Second: Merchandise Imports
Imports from all groupings increased, except for the USA and African
countries. The EU came in the lead (32.9 percent of the total), followed by the Asian countries (19.9 percent) and the Arab countries (17.4 percent). Turning to main trade partners, the USA came first, then China, Germany, Switzerland, UK, Kuwait, Turkey, Saudi Arabia, and UAE (with a combined share of 50.4 percent of total import payments).
- 98-
Imports by Geographical Distribution Fiscal Year
(25.0)
(20.0)
(15.0)
(10.0)
(5.0)
0.0
EU Other EuropeanCountries
RussianFederation &
C.I.S
USA Arab Countries Asian Countries(Non-Arab)
AfricanCountries (Non-
Arab)
Australia &Other Countries
2010/2011 2011/2012
US$ bn
5/3/4 - Breakdown of Trade by Main Commodity In FY 2011/2012, the volume of trade of all merchandise groups increased,
with the exception of base metals and products; and vehicles, cars and other means of transportation. The share of crude oil and products accounted for 29.1 percent of the total volume of trade, followed by chemicals (9.5 percent) and foodstuffs (8.7 percent). First: Merchandise Exports
A breakdown of export proceeds by main commodity shows that crude oil and products came first, accounting for 48.7 percent of total exports, followed by chemicals (9.7 percent), and raw cotton and its products and other textile materials (7.2 percent).
- 99-
Exports by Main Commodities Fiscal Year
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
Oil
Food
stuf
fs
Cot
ton
&Te
xtile
Mat
eria
ls
Cer
eals
Che
mic
als
Mac
hine
ry &
Ele
ctric
App
lianc
es
Bas
e M
etal
s &
Pro
duct
s
Veh
icle
s, C
ars
& O
ther
Mea
nsof
Tran
spor
tatio
n
2010/2011 2011/2012
US$ bn
Second: Merchandise Imports
The breakdown of merchandise imports by main commodity indicates that crude oil and products topped the list, with a share of 20.1 percent, followed by foodstuffs (excluding cereals) with 10.8 percent, then machinery, and electric appliances and parts thereof (9.9 percent).
Imports by Main Commodities Fiscal Year
-14.0-12.0-10.0-8.0-6.0-4.0-2.00.0
Oil
Food
stuf
fs
Cot
ton
&Te
xtile
Mat
eria
ls
Cer
eals
Che
mic
als
Mac
hine
ry &
Ele
ctric
App
lianc
es
Bas
e M
etal
s &
Pro
duct
s
Veh
icle
s, C
ars
& o
ther
Mea
nsof
Tran
spor
tatio
n
2010/2011 2011/2012
US$ bn
Net International FinanceFY
13780.2
(5315.3)(8546.2)-10000
-5000
0
5000
10000
15000
20000
2011/20122010/20112009/2010
(US$ mn)
Net Interest Pay ments and Prof it Transf ersTotal Net Resources f rom Abroad Net International Finance f rom Abroad
- 100-
5/4- International Finance
According to international finance data in FY 2011/2012, net inflows of resources from abroad retreated by US$ 2.6 billion, registering a net outflow of US$ 1.8 billion (compared to a net inflow of US$ 766.8 million a year earlier). Conversely, net flows of interest payments and profit transfers moved up by US$ 650.0 million, resulting in a net outflow of US$ 6.7 billion (against US$ 6.1 billion). Conseq-uently, net international finance (inflows of resources from abroad plus flows of interest payments and profit transfers) recorded outflows of US$ 8.5 billion (compared with US$ 5.3 billion in the preceding FY). That was ascribable to the following main factors:
(A) Net Inflows of External Resources: - Net foreign investments (direct and portfolio) in Egypt [inflows, chart
(A)] decreased by US$ 2.6 billion in FY 2011/2012, leading to a net outflow of US$ 2.9 billion (against US$ 362.3 million). That decline stemmed mainly from the pickup in the net outflow of portfolio investment∗ to US$ 5.0 billion (compared with US$ 2.6 billion a year earlier). This is in addition to the decline in net FDI in Egypt by US$ 110.4 million, to register a net inflow of US$ 2.1 billion (against US$ 2.2 billion).
- Net foreign investments abroad (direct and portfolio) [outflows, chart (B)]
went down by US$ 677.8 million, reaching US$ 397.9 million. That was an outcome of the US$ 708.8 million decline in FDI abroad, to stand at US$ 249.2 million, and the slight rise of US$ 31.0 million in portfolio investment abroad, to US$ 148.7 million.
∗ Including net foreign investments in Egyptian Treasury bills in the amount of US$ 4.0 billion (outflows), in
addition to net sales of foreigners’ dealings in the exchange market (US$ 1.1 billion).
- 101-
International Finance from Abroad (Net)
(US$ mn) Fiscal Year
2010/11 2011/12+ Change (-)
Net International Finance from Abroad (A-B) (5315.3) (8546.2) (3230.9) A- Net Resources from Abroad 766.8 (1814.1) (2580.9) 1- Official grants (net) 752.9 632.4 (120.5) 2- External borrowing (net) 1451.9 898.5 (553.4) 3- Direct investment in Egypt (net) 2188.6 2078.2 (110.4) 4- Portfolio investment in Egypt (net) (2550.9) (5025.3) (2474.4) 5- Direct investment abroad (958.0) (249.2) 708.8 6- Portfolio investment abroad (net) (117.7) (148.7) (31.0) B- Net Interest Payments and Profit Transfers (6082.1) (6732.1) (650.0) 1-Interest on external loans and facilities (529.2) (509.0) 20.2 2-Net interest on bank deposits abroad 98.4 84.3 (14.1) 3-Net profit transfers of FDI (4806.0) (5683.7) (877.7) 4-Net profit transfers of portfolio investment (845.3) (623.7) 221.6 + Provisional.
The following chart illustrates the developments in net foreign investments (direct and portfolio) in Egypt and abroad in FY 2011/2012, compared with the last three years.
- External borrowing (medium-, long- and short-term loans and facilities)
revealed a decline of US$ 553.4 million in net disbursements to US$ 898.5 million in the year under review (from US$ 1.5 billion in the previous FY) owing to the increase in the disbursements of loans and
Net Resources AbroadFY
(249.2)
(958.0)(976.6)(1340.5)
(148.7)(117.7)(522.2)
(410.8)
(1500)(1300)(1100)(900)(700)(500)(300)(100)100300500700900
2008/2009 2009/2010 2010/2011 2011/2012
US$ mn
Direct Investment AbroadNet Portfolio Investment Abroad
Chart (B)
Net Resources in EgyptFY
2078.2
2188.66758.28113.4
(5025.3)(2550.9)
7879.3
(9210.7)
(15000)(13000)(11000)(9000)(7000)(5000)(3000)(1000)10003000500070009000
2008/2009 2009/2010 2010/2011 2011/2012
US$ mn
Net Direct Investment in Egypt Net Portfolio Investment in Egypt
Chart (A)
- 102-
facilities, including the long-term deposit of the Saudi Fund for Development (US$ 1.0 billion), in the reporting year.
- Net official grants rolled back by US$ 120.5 million, to US$ 632.4
million in FY 2011/2012.
(B) Net flows of interest payments and profit transfers: with respect to the
returns of capital flows transferred abroad calculated on net basis (inflows minus outflows), represented in interest payments on external loans and facilities, and foreign (direct and portfolio) investment, an increase of US$ 650.0 million was seen in the net flows of interest payments and profit transfers of direct and indirect investment, resulting in an outflow of US$ 6.7 billion (against US$ 6.1 billion). The rise reflected mainly the pickup in net FDI profit transfers, which posted a net outflow of US$ 5.7 billion (against US$ 4.8 billion), due to the increase in the profit transfers of foreign petroleum companies.
Net Flows of Official Grants and External Borrowing FY
632.4614.3752.9
1251.6
4095.3
1451.9
(101.5)(500)0
50010001500200025003000350040004500
2008/2009 2009/2010 2010/2011 2011/2012
US$ mn
Official grants Net external borrowing
- 103-
5/4/1- Foreign Direct Investment (FDI) in Egypt∗
During FY 2011/2012, net FDI in Egypt contracted by US$ 110.4 million, registering a net inflow of US$ 2.1 billion (compared with US$ 2.2 billion in the preceding FY). This came on the back of the 31.2 percent rise in capital repatriation, which exceeded the increase in total investment inflows (22.9 percent).
The breakdown of investment inflows shows that flows from the USA
witnessed the largest decline (US$ 1.2 billion), recording US$ 577.6 million, of which 78.4 percent was directed mainly to petroleum investments (against US$ 1.8 billion). By contrast, inflows from the EU countries increased by some US$ 3.4 billion, to US$ 9.5 billion, and from the Arab countries by US$ 133.1 million to US$ 1.2 billion (mostly greenfield investments that made up 52.0 percent). However, investments from the rest of the world dropped by US$ 121.0 million, to US$ 502.9 million.
The sectoral distribution of total FDI inflows to Egypt during the
reporting year revealed that the petroleum sector received 60.3 percent of the total, of which the European Union provided the bulk of 86.7 percent (70.1 percent from UK and 9.3 percent from Belgium), compared with 6.4 percent from the USA, 3.9 percent from the Arab countries (2.2 percent from the UAE and 0.5 percent from Saudi Arabia), and 3.0 percent from the rest of the world (Switzerland 0.9 percent, and Ukraine and India 0.6 percent each). The services sector came next, with a share of 18.7 percent, followed by the manufacturing sector with 6.2 percent.
∗ FDI is a category of international investment that implies the existence of a long-term relationship
(between a resident in a given economy and an enterprise resident in another economy), in which a direct investor owns 10 percent or more of the ordinary shares or voting power in an incorporated enterprise, or its equivalent in an unincorporated enterprise. (Source:IMF's BOP Manual, Fifth Edition)
- 104-
The breakdown of FDI inflows to Egypt by investment purpose reveals that
petroleum investments ranked first, amounting to US$ 7.1 billion or 60.3 percent of the total. Greenfield investments came next with a share of US$ 2.9 billion (24.7 percent), followed by real estate investments of about US$ 86.2 million (0.7 percent).
2078.22188.6
6758.28113.4
-10000-7000-4000-1000200050008000
1100014000
2008/2009 2009/2010 2010/2011 2011/2012Outflow s Proceeds from selling local entities to non-residents Petroleum sector investments Transfers for the purchase of real estates Greenfield InvestmentsNet Foreign Direct Investment in Egypt
Net FDI in EgyptFYUS$ mn
Total FDI in Egypt by Economic Sector FY 2011/2012
(US$ mn)Real Estate
86.2
Other Services
465.1
Tourism 41.7
Finance 212.7
Communication & IT 1390.9
Services2196.6
Manufacturing 732.6Agriculture
80.7Construction 127.2
Petroleum 7101.0
Undistributed1530.0
- 105-
Geographical Distribution of FDI in Egypt (US$ mn)
Fiscal Year 2010/2011 2011/2012* Change + (-)
Flows of FDI in Egypt (Net) 2188.6 2078.2 (110.4) Total Inflows 9574.4 11768.1 2193.7 USA 1790.5 577.6 (1212.9) EU Countries 6107.4 9501.9 3394.5 Germany 274.5 202.5 (72.0) France 227.0 315.6 88.6 UK 4307.1 5819.7 1512.6 Italy 246.5 193.3 (53.2) Greece 41.2 55.6 14.4 Spain 46.5 61.0 14.5 The Netherlands 145.6 409.4 263.8 Belgium 776.7 2089.2 1312.5 Luxemburg 0.7 3.1 2.4 Denmark 17.2 3.3 (13.9) Sweden 1.8 309.6 307.8 Austria 2.3 5.7 3.4 Cyprus 8.5 7.0 (1.5) Others 11.8 29.6 15.1 Arab Countries 1052.6 1185.7 133.1 Saudi Arabia 206.3 240.4 34.1 UAE 410.8 559.8 149.0 Tunisia 3.8 5.5 1.7 Algeria 41.2 31.8 -9.4 Kuwait 58.6 63.5 4.9 Lebanon 18.4 48.1 29.7 Libya 12.4 5.3 (7.1) Jordan 3.0 10.7 7.7 Bahrain 66.2 152.5 86.3 Qatar 191.5 34.9 (156.6) Oman 11.9 13.3 1.4 Yemen 14.8 2.7 (12.1) Sudan 0.4 0.6 0.2 Others 13.3 16.6 3.3 Other Countries 623.9 502.9 (121.0) Switzerland 158.5 124.8 (33.7) Japan 27.4 36.7 9.3 Canada 22.5 29.2 6.7 China 48.0 73.6 25.6 Australia 5.8 2.1 (3.7) India 21.2 53.3 32.1 Turkey 27.2 12.5 (14.7) Norway 2.1 3.3 1.2 Other countries 311.2 167.4 (143.8) Capital Repatriation** (7385.8) (9689.9) (2304.1)
* Provisional. ** Capital repatriation (outflows) means that a direct investor recovers his share in the capital of an investment
enterprise - in case of partial or full disposal - and transfers part/all of it abroad.
- 106-
5/4/2- External Official Grants
The following chart illustrates that net transfers of official grants (cash
and in-kind) fell to some US$ 632.4 million during FY 2011/2012 (from US$ 752.9 million a year earlier). The drop was traceable to the retreat in inward grants, as inward in-kind grants declined by US$ 75.1 million or 30.1 percent, to US$ 174.5 million, as well as cash grants down by US$ 13.4 million to US$ 519.5 million (US$ 500.0 million grants from Qatar). On the other hand, outflows of official grants surged by US$ 32.0 million, to US$ 61.6 million (against US$ 29.6 million a year earlier).
According to the data of the Ministry of International Cooperation, total new grant commitments decreased in the said year by US$ 168.4 million or 68.5 percent, to only US$ 77.6 million, mainly because of the downsizing of commitments made with the USA, the European Commission, and the Interna-tional Fund for Agricultural Development (IFAD).
317.1563.6 532.9 519.5
375.1
479.3 174.5249.6
(61.6)(29.6)(88.9)(77.9)-150-5050
150250350450550650750850950
2008/2009 2009/2010 2010/2011 2011/2012
Inward cash grants Inward in-kind grants Outward grants
Transfers of Official Grants during FYUS$ mn
- 107-
Official Grants: New Commitments and Net Actual Flows
(US$ mn)
Fiscal Year 2010/11 2011/12* 2010/11 2011/12*
Actual Flows Commitments Net Inflows 752.9 632.4 Inflows: 782.5 694.0 246.0 77.6 USA 210.8 139.9 166.3 15.5 Spain 1.3 Japan 13.3 3.5 13.0 Germany 19.7 24.0 17.8 20.5 Norway 6.2 China 14.3 22.2 14.3 Canada 0.6 0.4 Austria 0.4 Saudi Arabia 500.0 Qatar 500.0 Belgium 2.7 1.5 Switzerland 0.1 1.4 Denmark 0.7 Kuwait 0.4 World Bank 12.3 3.0 European Commission 25.8 2.0 African Development Bank 4.0 OPEC 0.7 Kuwaiti Fund for Arab Economic Development 0.3
Other Countries & Organizations 20.2 0.4 16.6 4.0 Outflows (29.6) (61.6) *Provisional.
The sectoral distribution of grant commitments indicated that the bulk of these grants went to the services sector (81.0 percent), of which insurance and social security made up 14.0 percent, and financial intermediaries and supporting services 1.5 percent; while productive sectors accounted for 19.0 percent of the value of these commitments, as shown in the table below.
- 108-
Breakdown of Official Grant Commitments by Beneficiary (US$ mn)
Fiscal Year 2010/11 % 2011/12* % Change
Total 246.0 100.0 77.6 100.0 (168.4) Productive Sectors 59.1 24.0 14.7 19.0 (44.4) Agriculture and irrigation 33.0 13.4 2.8 3.6 (30.2) Energy and electricity 26.1 10.6 9.2 11.9 (16.9) Potable water and sanitation 0.0 0.0 2.7 3.5 2.7 Services Sectors 186.9 76.0 62.9 81.0 (124.0) Transportation, communications and information 0.0 0.0 0.6 0.8 0.6 Financial intermediaries and supporting services 24.8 10.1 1.2 1.5 (23.6) Insurance and social security 1.0 0.4 10.9 14.0 9.9 General government 82.3 33.5 0.7 0.9 (81.6) Education and health 78.7 32.0 4.5 5.8 (74.2) Others 0.1 0.0 45.0 58.0 44.9 *Provisional.
5/4/3- External Debt
Outstanding external debt (public and private - all maturities) retreated by
1.5 percent or about US$ 521.2 million, to US$ 34.4 billion at end of June 2012 (against about US$ 34.9 billion at end of June 2011). The decrease was due to:
• The decline in most currencies of borrowing versus the US dollar by US$ 1651.4 million worth;
• Net disbursement of loans, facilities and deposits (all maturities) of US$ 1046.2 million; and
• The increase in the balance of Egyptian bonds and notes issued in global markets by US$ 84.0 million, due to the issuance of US$ 500 million bond for the Saudi Fund for Development (SFD). Meanwhile, bonds declined due to purchases by resident entities in the amount of US$ 229.1 million, in addition to the repayment of US$ 186.9 million (the value of the second tranche of the US$ sovereign bonds held with non-residents, falling due on July 2011.
- 109-
∗External Debt Structure
• The breakdown of external debt by original maturities indicates that medium- and long-term debt (guaranteed and non-guaranteed) amounted to US$ 31.5 billion at end of June 2012, accounting for 91.5 percent of total external debt at end of June 2012 (long-term debt represented US$ 30.3 billion and medium-term debt US$ 1.2 billion, mostly LE bonds issued abroad and Saudi bonds). Short-term debt (US$ 2.9 billion) constituted 8.5 percent of the total debt), as shown in the following graph:
- Around US$ 15.3 billion of long-term loans∗∗ (44.6 percent of the total debt) were owed to Paris Club members, while debt to countries other than Paris Club members amounted to US$ 1.1 billion (3.2 percent).
∗ The structure of Egypt’s external debt, according to currencies of borrowing, is considered one of the main
indicators used by the CBE to determine the structure of international reserves by currency. ∗∗ Representing the bilateral loans (rescheduled or non-rescheduled), in addition to buyers’ and suppliers’ credit.
Total External Debt (US$ 34384.5) mn
Short-Term Debt 2901.9
Medium-Term Debt 1233.2
Long-Term Debt 30249.4
International Organizations 10637.9
Paris Club Debt 15328.4
Guaranteed Bonds 1250.0
Other Bilateral Loans 1113.5
Sovereign Bonds 866.2
Suppliers’ Credit 2004
Rescheduled Debt 10983.3
Non-Rescheduled Debt 4345.1 of which 384.4 are buyers' credit
LE Denominated Bonds 284.5
International Organizations
430.2
Private Sector Non-Guaranteed
Debt 18.3
Suppliers’ Credit 0.2
Trade Facilities
1988.2
Deposits of Non-Residents 913.7
US$ mn
Private Sector Non-Guaranteed Debt 33.0
Long-Term deposit 1000.0
Sovereign Note 500.0
- 110- - Debt to international and regional organizations posted some US$ 11.1
billion or 32.2 percent of the total at end of June 2012, with an increase of about US$ 259.5 million above June 2011.
- The balance of Egyptian bonds and notes (held by non-residents) reached US$ 2.9 billion (8.4 percent of the total debt), including:
• Guaranteed government bonds issued in September 2005, at a value
of US$ 1250.0 million, and falling due in September 2015; • LE bonds issued in July 2007, in the amount of US$ 284.5 million,
and maturing in July 2012; • Sovereign bonds issued in April 2010, at a value of US$ 866.2
million, and falling due as two tranches in 2020 and 2040; and • Government bonds∗ issued in June 2012, at a value of US$ 500
million, and reaching maturity in June 2017.
- Non-guaranteed debt of the private sector registered only US$ 51.3 million.
- Long-term deposits reached about US$ 1.0 billion (2.9 percent of the total debt), represented in the deposit of the Saudi Fund for Development (SFD) held with the CBE.
- Short-term debt rose by US$ 144.4 million to US$ 2.9 billion (54.9 percent owed by the private sector).This was an outcome of the increase in short-term trade facilities by 11.4 percent to US$ 2.0 billion and the fall in short-term deposits of non-residents by 6.1 percent to US$ 913.7 million.
External Debt by Debtor
The breakdown of external debt by debtor at end of June 2012 showed the
following: - The decrease in the debt of the central and local government by US$ 1.5
billion to only US$ 25.6 billion, banks by US$ 100.9 million to only US$ 1.6 billion and other sectors by about US$ 34.8 million to US$ 4.6 billion.
- The debt of the monetary authority (the CBE) scaled up by US$ 1.1 billion to US$ 2.6 billion (due to the US$ 1.0 billion long-term deposit of SFD).
∗ Issued by the Ministry of Finance for the Saudi Fund for Development (SFD).
- 111-
According to the breakdown of external debt by debtor at end of June 2012,
the central government remained the main obligor (74.4 percent of the total external debt), followed by the monetary authority (7.5 percent), banks (4.8 percent) and the other sectors (13.3 percent).
Total External Debt by Debtor
)US$ bn(
June 2011 June 2012
The public sector was the major obligor (official debt), with a share of
US$ 32.7 billion or 95.1 percent of total external debt, while the private sector accounted for US$ 1.7 billion or 4.9 percent at end of June 2012.
Central & Local
Gov ernment 27.1
Other Sectors
4.6
Banks 1.7
Monetary Authority
1.5
Central & Local
Gov ernment
25.6
Other Sectors
4.6
Banks 1.6
Monetary Authority
2.6
External Debt by Debtor Share in Total Increase/Decrease by Sector during FY
(1497.8)
842.9431.6
1112.3
239.8
1048.2
(100.9)(238.6)
166.7
(34.8)
367.4
516.6
-2000
-1500
-1000
-500
0
500
1000
1500
2000
2009/2010 2010/2011 2011/2012
(US$ mn)
Central & Local Government Monetary Authority Banks Other Sectors
External Debt by Major CurrenciesEnd of June 2012
US dollar 43.7%
Swiss franc1.4%
Egyptian pound1.6%
Japanese yen12.7%
Kuwaiti dinar6.5%
Euro24.4%
SDRs7.9%
Other currencies
1.8%
External Debt by CreditorJune 2012
International organizations
32.2%
Other countries
9.1% Long-term deposits
2.9%
Arab countries
4.8%
United Kingdom
3.6%
Germany9.7%
Japan12.2%
France8.6%
USA8.5%
Egyptian bonds and
notes8.4%
- 112-
External Debt by Creditor
The breakdown of external debt∗ by creditor revealed that 39.0 percent of the total debt was owed to the four main Paris Club members; namely Japan (12.2 percent), Germany (9.7 percent), France (8.6 percent) and USA (8.5 percent). On the other hand, the Arab countries combined account-ed for 4.8 percent, mainly owed to Kuwait (2.8 percent) and Saudi Arabia∗∗ (0.8 percent) and the international and regional organizations (32.2 percent).
External Debt by Currency
The distribution of external debt
by main component currencies manif-ested that the US dollar was the main currency of borrowing, with a share of 51.5 percent, because of the out-standing obligations in US dollar to creditors other than the USA. The euro came next (24.4 percent), followed by the Japanese yen (12.7 percent), the SDRs (7.9 percent) and the Kuwaiti dinar (6.5 percent). All these currenc-ies represented 54.3 percent of the total, while the other currencies made up 4.8 percent (the LE represents 1.6 percent).
External Debt Service
Turning to external debt service (medium- and long-term), debt service
payments accelerated by US$ 105.4 million in FY 2011/2012, posting about US$ 2.9 billion, against about US$ 2.8 billion in the preceding FY. It reflected ∗ Bilateral loans represent only borrowing between governments. ∗∗ Excluding the US$ 1.5 billion deposit at the CBE and the government bond of the Ministry of Finance, since
they are classified as follows: a long-term deposit at a value of US$ 1 billion and Egyptian notes and bonds in the amount of US$ 500 million.
- 113-
the rise in principal repayments by US$ 84.4 million to US$ 2.2 billion and in interest payments by US$ 21.0 million to about US$ 659.0 million.
Main Indicators of External Debt
During FY 2011/2012, the main indicators of external debt slightly picked up as the debt service/export proceeds of goods and services rose from 5.7 percent to 6.1 percent. The increase was, by turn, the result of the acceleration in external debt payments on the one hand, and the contraction of the exports of goods and services, on the other. By contrast, the debt service/current receipts decreased from 4.5 percent to 4.4 percent.
Short-term debt/net international reserves rose to 18.7 percent at the end of June 2012 (against 10.4 percent at the end of June 2011). This was attributed to the fall in international reserves by 41.5 percent. Short-term debt/total debt also increased to 8.4 percent (against 7.9 percent)
Total external debt/GDP decreased to 13.5 percent (against 15.2 percent) and also external debt per capita dropped to US$ 389.7 (against US$ 413.6) at the end of June 2011.
External Debt IndicatorsEnd of June
71.471.9
15.2 13.5
413.6
389.7
0
50
100
150
200
250
300
2008/09 2009/10 2010/11 2011/12
%
370
380
390
400
410
420
430
(US$)
External Debt / Exports of Goods and Services External Debt /GDP External Debt per capita (US$) (right axis)
External Debt Indicators FY
4.54.4
10.4
18.7
7.98.4
5.7 6.1
0
5
10
15
20
2008/09 2009/10 2010/11 2011/12
%
Debt Serv ice / Current Receipts (including transf ers) Short-term Debt / Net International Reserv es
Short-term Debt / Total External Debt Debt Serv ice / Exports of Goods and Serv ices
- 114-
According to the IMF classification, the indicators of external debt in Egypt relative to peer groups of economic regions showed that Egypt’s external debt indicators lay within safety limits (as shown in the following table). Egypt’s debt as a percentage of GDP (13.5 percent) during FY 2011/2012 came among the best global levels that ranged between 15.1 percent (for developing Asian countries) and 63.6 percent (for North and Central European countries). Moreover, by recording 6.1 percent, the indicator of debt service/exports of goods and services was lower than global forecasts for 2011, that ranged between 12.2 percent (for sub-Saharan Africa) and 55.7 percent (for North and Central Europe), according to the IMF World Economic Outlook issued in April 2012.
Main Debt Indicators in Egypt Vs. Economic Regions
External
Debt/ GDP
External Debt/ Exports of
Goods & Services
Debt Service/ Exports of
Goods & Services
Region
2010 2011 2010 2011 2010 2011 North and Central Europe 65.6 63.6 178.7 159.1 59.1 55.7 Asia 15.5 15.1 49.5 48.3 19.5 22.6
Latin America and the Caribbean 21.3 22.0 104.4 101.0 31.4 30 Sub-Saharan Africa 23.6 22.2 66.3 58.6 15.8 12.2 Middle East and North Africa 30.9 27.9 63.9 53.5 17.9 15.3 Source: IMF World Economic Outlook - April 2012 (Statistical Appendix).
New Commitments on Loans and Facilities
The reporting year witnessed new commitments on loans and facilities, amounting to US$ 2.7 billion (up by US$ 960.1 million, relative to the year before), mostly from international and regional organizations (US$ 2.3 billion or 85.6 percent of total commitments). The remaining US$ 390.7 million or 14.4 percent constituted commitments on bilateral loans (new commitments with the African Development Bank and the Institute for International Islamic Financial Trade, in addition to commitments on bilateral loans with Japan and Italy).
Annex
- 115-
Statistical Section
(1) Indicators of Development and Economic Growth
(1/1) GDP at Factor Cost by Economic Sector (at 2006/2007 Prices) (1/2) GDP by Expenditure (at 2006/2007 Prices) (1/3) Implemented Investments (1/4) Output of Main Crops (1/5) Position of Egyptian Cotton (1/6) Exports of Egyptian Cotton (1/7) Output of Main Industrial Products (1/8) Consumer Price Index (urban population) (1/9) Producer Price Index (2) Monetary Aggregates (2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets (2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets (2/1/3) Banking Survey: Deposits in Local Currency (2/1/4) Banking Survey: Deposits in Foreign Currencies (2/1/5) Banking Survey: Foreign Assets and Liabilities (2/1/6) Banking Survey: Domestic Credit and Other Items (Net) (2/1/7) Total Saving Vessels (2/1/8) Bank Lending and Discount Balances to Business Sector (Public
Business Sector) (2/1/8 contd.) Bank Lending and Discount Balances to Business Sector (Private
Business Sector)
Financial Sector (2/2/1) Structure of Egyptian Banking System and Banking Density (2/2/2) Representation offices of Foreign Banks in Egypt Registered with the
CBE (on June 30, 2012) (2/2/3) Local Mutual Funds Authorized and Operating as at 30/6/2012
- 116- Activity of the Banking System
Central Bank of Egypt
(2/3/1) Note Issued by Denomination (2/3/2) Currency in Circulation outside CBE by Denomination (2/3/3) CBE: Transactions via RTGS and SWIFT
Banks (2/4/1) Aggregate Financial Position (2/4/2) Deposits by Maturity (2/4/3) Deposits by Sector (2/4/4) Deposits by Economic Activity (2/4/5) Portfolio Investments by Sector (2/4/6) Lending and Discount Balances by Sector (2/4/7) Credit by Sector (2/4/8) Lending and Discount Balances by Economic Activity
Interest Rates
(2/5/1) Discount and Interest Rates on Deposits and Loans in Egyptian Pound (2/5/2) Domestic Interest Rates on 3- Month Deposits in Major Currencies (2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages) (3) Non-Banking Financial Sector (3/1) Companies Listed on the Egyptian Exchange (3/2) Trading in Shares on the Egyptian Exchange (3/3) Trading in Bonds on the Egyptian Exchange (3/4) Foreigners' Transactions on the Egyptian Exchange (3/5) Global Depository Receipts (GDRs) (3/6) Outstanding Balance of Treasury Bills (Quarterly) (3/7) Outstanding Balance of Treasury Bills (Weekly) (3/8) Outstanding Balance of Treasury Bonds (End of June 2012)
- 117- (4) Public Finance & Domestic Public Debt (4/1) Consolidated Fiscal Operations of the General Government (Total Expenditures) (4/2) Consolidated Fiscal Operations of the General Government (Total Revenues) (4/3) Summary of the Consolidated Fiscal Operations of the General
Government (4/4) Gross Domestic Debt (4/5) NIB Resources and Uses (5) External Transactions
(5/1) Balance of Payments (US$) (5/2) Exports by Degree of Processing (5/3) Imports by Degree of Use (5/4) Regional Distribution of Exports and Imports (5/5) Average LE Exchange Rates (in piasters per foreign currency unit) (5/6) External Debt Structure (5/7) External Debt Indicators (5/8) Distribution of External Debt by Main Currencies
(LE mn)
Public Private Total Public Private Total Public Private Total
Total GDP 319640.4 534329.8 853970.2 325888.9 547165.4 873054.3 2.0 2.4 2.2
Agriculture,Irrigation & Fishing 21.9 113256.9 113278.8 22.8 116563.0 116585.8 4.1 2.9 2.9
Extractions 93870.0 21508.0 115378.0 93844.0 21650.0 115494.0 0.0 0.7 0.1
Oil 41081.0 7126.0 48207.0 41451.0 7253.0 48704.0 0.9 1.8 1.0
Natural gas 52385.0 11291.0 63676.0 51976.0 11239.0 63215.0 -0.8 -0.5 -0.7
Others 404.0 3091.0 3495.0 417.0 3158.0 3575.0 3.2 2.2 2.3
Manufacturing Industries 20999.0 112485.0 133484.0 21002.0 113465.0 134467.0 0.0 0.9 0.7
Oil refining 3293.0 2777.0 6070.0 3118.0 2668.0 5786.0 -5.3 -3.9 -4.7
Others 17706.0 109708.0 127414.0 17884.0 110797.0 128681.0 1.0 1.0 1.0
Electricity 11058.0 1385.2 12443.2 11816.0 1367.0 13183.0 6.9 -1.3 5.9
Water 3057.0 0.0 3057.0 3199.0 0.0 3199.0 4.6 0.0 4.6
Sanitation 732.0 0.0 732.0 765.0 0.0 765.0 4.5 0.0 4.5
Construction & Building 4973.0 40652.0 45625.0 5131.0 42001.0 47132.0 3.2 3.3 3.3
Transportation & Storage 9430.0 27611.0 37041.0 9621.0 28449.0 38070.0 2.0 3.0 2.8
Communications 10742.0 25834.0 36576.0 10849.8 27612.3 38462.1 1.0 6.9 5.2
Information 651.0 1201.0 1852.0 674.0 1254.0 1928.0 3.5 4.4 4.1
Suez Canal 28234.0 0.0 28234.0 29326.0 0.0 29326.0 3.9 0.0 3.9
Wholesale & Retail Trade 3264.0 87582.0 90846.0 3358.0 89316.0 92674.0 2.9 2.0 2.0
Finance 21646.0 11520.0 33166.0 22170.0 11730.0 33900.0 2.4 1.8 2.2
Insurance 2220.0 629.0 2849.0 2266.0 638.0 2904.0 2.1 1.4 1.9
Social Solidarity 30255.0 0.0 30255.0 31040.0 0.0 31040.0 2.6 0.0 2.6
Tourism 332.0 33229.0 33561.0 345.0 33981.1 34326.1 3.9 2.3 2.3
Real Estate 1002.0 23251.0 24253.0 1043.0 23996.0 25039.0 4.1 3.2 3.2
Real Estate Ownership 409.0 12186.0 12595.0 426.0 12672.0 13098.0 4.2 4.0 4.0
Business Services 593.0 11065.0 11658.0 617.0 11324.0 11941.0 4.0 2.3 2.4
General Government 76337.0 0.0 76337.0 78572.0 0.0 78572.0 2.9 0.0 2.9
Social Services 816.5 34185.7 35002.2 844.3 35143.0 35987.3 3.4 2.8 2.8
Education 0.0 9839.0 9839.0 0.0 10083.0 10083.0 0.0 2.5 2.5
Health 782.0 10628.0 11410.0 807.0 10942.0 11749.0 3.2 3.0 3.0
Others 34.5 13718.7 13753.2 37.3 14118.0 14155.3 8.1 2.9 2.9
Source: Ministry of Planning.
- 118 -
Sectors 2010/2011 2011/2012 2011/2012
Growth Rate %
(1/1) GDP at Factor Cost by Economic Sector
At 2006/2007 prices
2010/2011 2011/2012 2010/2011 2011/2012 2010/2011 2011/2012
1-GDP at Market Price (2+5-6) 894.0 913.8 100.0 100.0 1.8 2.2
2- Total Domestic Expenditure (3+4) 932.8 988.7 104.4 108.2 3.8 6.0
3- Final Consumption 760.5 802.7 85.1 87.8 5.3 5.5
Final private consumption 661.8 700.9 74.0 76.7 5.5 5.9
Final government consumption 98.7 101.8 11.1 11.1 3.8 3.1
4- Gross Capital Formation 172.3 186.0 19.3 20.4 -2.1 8.0
Investments 162.8 164.0 18.2 18.0 -5.6 0.7
Change in stock 9.5 22.0 1.1 2.4 .. ..
5- Exports of Goods & Services 243.6 238.0 27.2 26.0 1.2 -2.3
6- Imports of Goods & Services 282.4 312.9 31.6 34.2 8.4 10.8
Source: Ministry of planning.
- 119 -
(1/2) GDP by Expenditure ( At 2006/ 2007 prices )
Value at LE bn Structure % Growth Rate %
Government Sector
Economic Authorities
Public Companies
Private Sector Total Government
SectorEconomic Authorities
Public Companies
Private Sector Total
Total Investments 39880.9 19417.5 28091.9 141676.1 229066.4 34279.0 20357.6 30201.3 151228.7 236066.6
Agriculture, Irrigation & Reclamation 2910.7 365.0 0.0 3558.0 6833.7 2413.6 24.0 0.2 2698.0 5135.8
Mining and Crude Oil 0.0 2353.0 392.5 9433.0 12178.5 0.0 2626.9 536.7 3538.0 6701.6
Natural Gas 0.0 7890.0 1255.0 23312.8 32547.8 0.0 9319.2 2693.0 39512.0 51524.2
Other Extractions 1.4 0.0 0.0 0.0 1.4 2.5 0.0 0.0 0.0 2.5
Oil Refining 0.0 0.0 278.3 2600.0 2878.3 0.0 0.0 296.9 9972.0 10268.9
Other Manufacturing 219.1 8.1 4380.0 16280.0 20887.2 142.7 20.4 1542.5 8505.0 10210.6
Electricity 1061.8 855.3 14963.0 0.0 16880.1 1060.1 644.5 15108.6 0.0 16813.2
Water 4131.9 1064.5 0.0 0.0 5196.4 3203.5 1513.1 0.0 0.0 4716.6
Construction & Building 75.0 0.0 887.5 4800.0 5762.5 74.6 0.0 736.8 890.0 1701.4
Transportation & Storage 8734.1 2408.8 4687.4 9576.9 25407.2 7899.3 2061.5 7532.9 13034.0 30527.7
Communications 697.3 30.7 0.0 16193.9 16921.9 451.4 196.9 0.0 13384.7 14033.0
Information 0.0 920.4 0.0 2200.0 3120.4 0.0 658.3 0.0 1600.0 2258.3
Suez Canal 0.0 475.4 0.0 0.0 475.4 0.0 426.3 0.0 0.0 426.3
Wholesale & Retail Trade 0.0 135.0 105.4 10000.0 10240.4 0.0 309.0 107.7 8520.0 8936.7
Financial Intermediaries 19.8 112.2 742.9 0.0 874.9 94.0 127.9 1095.6 0.0 1317.5
Insurance and Social Solidarity 0.0 0.0 0.0 0.0 0.0 0.0 40.2 0.0 0.0 40.2
Hotels and Restaurants 6.5 16.8 350.0 5371.5 5744.8 3.5 66.8 500.0 5000.0 5570.3
Real Estate 228.1 1515.8 0.0 30550.0 32293.9 118.8 1243.2 0.0 38000.0 39362.0
Educational Services 4542.0 85.1 0.0 2650.0 7277.1 3471.2 163.7 0.0 2100.0 5734.9
Health Services 3014.0 193.3 0.0 2350.0 5557.3 1884.8 110.7 0.0 1850.0 3845.5
Sanitation 5085.4 649.1 0.0 0.0 5734.5 4975.7 704.9 0.0 0.0 5680.6
Others 9153.8 249.0 49.9 2800.0 12252.7 5538.0 100.1 50.4 2625.0 8313.5
Settlements 0.0 0.0 0.0 0.0 0.0 2945.3 0.0 0.0 0.0 2945.3
Source: Ministry of Planning.
(1/3) Implemented Investments
2011/2012
(LE mn and by Current Prices)
2010/2011
-120-
Crops Productivity Production Area Productivity Production Area Productivity
Unit (Thousand (Thousand per Feddan (Thousand (Thousand per Feddan
Tons) Feddans) Tons) Feddans)
Wheat d 8367 3048 18.3 7901 3150 16.721
Barley d 122 85 12.02 389 230 12.020
Maize Summer Crops d 5365 1690 22.671 5731 1785 23.500
Nile Crops d 734 273 19.204 983 340 21.500
Millet Summer Crops d 691 329 15.002 736 340 15.500
Nile Crops d 10 5 14.285 190 80 17.300
Rice ton 4329 1095 3.953 4600 1100 4.182
Beans d 175* 132 8.553 373 131 8.540
Lentils d 2 3 4.166 16 17 5.881
Cotton (seeds) mc 431 370 7.395 473 400 7.508
Flax ton 34 8 4.25 207 45 4.600
Groundnuts d 203 159 17.023 213 165 17.200
Sesame d 46 88 4.356 59 110 4.500
Soybeans ton 43 36 1.194 70 60 1.167
Sunflower ton 37 34 1.088 78 75 1.040
Sugar cane ton 15709 321 48.937 17949 346 51.876
Sugar beet ton 7486 362 20.68 7635 362 20.686
Vegetables ton 21514 1903 11.305 24611 1914 -
Onion ton 2590** 172 14.26 2886+ 192 14.259
Fruits and palm products ton 8370 1376 6.082 12310 1500 -
d: Ardeb mc: metric cantar
* 3 thousand ardeb of interplanted local beans.
** 150 thousand tons of interplanted winter onions and 5 thousand tons of of interplanted seasonal onions.+ 135 thousand tons of interplanted winter onions and 12.3 thousand tons of of interplaned seasonal onions.
Source : Ministry of Planning .
(1/4) Output of Main Crops
2011/2012 (Preliminary)2010/2011 (Estimates) - 121-
Season Productivity Opening Total Total Domestic Imported
(Thousand Metric cantar/ Stock Supply Exports Consumption Cotton
Feddans) per Feddan
2002/2003 706 1316 4411 5727 8.1 2279 8006 3649 4140 120
2003/2004 531 1168 2795 3963 7.5 24 3987 1137 1412 1061
2004/2005 715 1551 4282 5833 8.2 370 6203 2837 3247 1458
2005/2006 650 858 3161 4019 6.2 118 4137 1865 1936 772
2006/2007 536 1058 3157 4215 7.9 337 4553 1555 1622 656
2007/2008 575 815 3627 4442 7.7 1411 5853 2584 2535 659
2008/2009 313 459 1647 2106 6.7 736 2842 381 879 1373
2009/2010 288 257 1634 1891 6.5 436 2327 1560 556 1274
2010/2011 375 558 2060 2618 7.0 230 2848 1790 662 840
2011/2012 525 791 2895 3686 7.0 283 3969 1807 1250 222
Source: Cotton, Spinning and Weaving Holding Company.
(Thousand metric cantars)
- 122 -
(1/5) Position of Egyptian Cotton
Extra Long
Long & long meduim Total
Cultivated Area
Crop
(Thousand metric cantars)
Quantity Relative Importance Quantity Relative
Importance Quantity Relative Importance
Export Commitments 1506320 100.0 2210770 100.0 1565009 100.0
Asian Countries 1166854 77.5 1364480 61.7 1140280 72.9
India 546130 36.2 556090 25.2 248330 15.9
Pakistan 189830 12.6 207500 9.4 305530 19.5
China 329670 21.9 422770 19.1 358630 22.9
South Korea 29280 1.9 24170 1.1 21330 1.4
Japan 17280 1.2 24190 1.1 9320 0.6
Bangladesh 27280 1.8 50360 2.3 151510 9.7
Indonesia 10440 0.7 12300 0.5 12110 0.8
Taiwan 0 0.0 5280 0.2 4000 0.3
Thailand 14444 1.0 53280 2.4 11020 0.7
Malaysia 500 0.1 8540 0.4 16500 1.0
Singapore 2000 0.1 0 0.0 0 0.0
Hong Kong 0 0.0 0 0.0 2000 0.1
EU Countries 64316 4.3 160760 7.3 57790 3.7
Italy 41346 2.8 60900 2.8 24020 1.5
Portugal 7060 0.5 5280 0.2 5080 0.3
Germany 14190 0.9 84720 3.8 10670 0.7
Greece 0 0.0 1200 0.1 2630 0.2
UK 0 0.0 0 0.0 6180 0.4
Slovenia 1320 0.1 7260 0.3 6740 0.4
Belgium 400 0.0 500 0.0 1910 0.1
Hungary 0 0.0 0 0.0 560 0.1
Lativa 0 0.0 900 0.1 0 0.0
Other European Countries 160230 10.6 317060 14.3 109999 7.0
Switzerland 69490 4.6 210490 9.5 32199 2.0
Turkey 90740 6.0 106570 4.8 77800 5.0
The USA 200 0.0 53160 2.4 27370 1.7
Arab Countries 41830 2.8 101140 4.6 27970 1.8
UAE 5000 0.3 2500 0.1 5960 0.4
Bahrain 7880 0.5 15000 0.7 7000 0.4
Morocco 3500 0.2 3460 0.2 2500 0.2
Qater 25000 1.7 66480 3.0 2220 0.1
Libya 0 0.0 13700 0.6 0 0.0
Syria 450 0.1 0 0.0 0 0.0
Tunisia 0 0.0 0 0.0 10290 0.7Other Countries 30050 2.0 45790 2.1 1500 0.1
Brazil 30050 2.0 42180 1.9 1500 0.1
Croatia 0 0.0 500 0.0 0 0.0
Eritrea 0 0.0 1110 0.1 0 0.0
South Africa 0 0.0 2000 0.0 0 0.0
Free Market (Egypt) 42840 2.8 168380 7.6 200100 12.8
Source: Cotton Spinning and Weaving Holding Company.
-123-
2011/2012 Season
(Till the End of June)
(1/6) Exports of Egyptian Cotton
(Till the End of June)
2009/2010 Season
(Till the End of June)
2010/2011 Season
2010/2011
Unit Public Private Total Public Private Total
Refined sugar Thousand tons 1358.4 699.4 2057.8 .. .. 2160.7
Animal & poultry fodder " 617.0 12762.1 13379.1 .. .. 14048.0
Carbonated drinks Box (million) 0.0 432.0 432.0 .. .. 453.6
Cigarettes Billion 77.7 14.4 92.1 .. .. 96.7
Cotton yarn, fibran Thousand tons 84.3 236.2 320.5 .. .. 336.5
Wool yarn " 7.0 28.0 35.0 .. .. 36.5
Silk yarn " 0.7 22.4 23.1 .. .. 24.3
Synthetic fibres " 3.3 105.9 109.2 .. .. 114.7
Blankets Million pieces 1.4 21.5 22.9 .. .. 24.0
Ready-made clothes " " 12.9 311.5 324.4 .. .. 340.6
Cars Units 9415.0 34212.0 43627.0 .. .. 45808.0
Buses " 341.0 7220.0 7561.0 .. .. 7939.0
Lorries " 678.0 27700.0 28378.0 .. .. 29796.0
Washing machines Thousands 7.0 1121.7 1128.7 .. .. 1185.1
Refrigerators " 6.8 1125.4 1132.2 .. .. 1188.8
Electric lamps Million 33.0 207.0 240.0 .. .. 252.0
Butagaz heaters Thousands 98.0 240.0 338.0 .. .. 354.9
Water metres Thousands 615.0 0.0 615.0 .. .. 645.7
Etectric metres Thousands 985.0 0.0 985.0 .. .. 1034.2
Aluminium & sheets thereof Thousand tons 320.5 0.0 320.5 .. .. 336.5
Reinforcing iron Thousand tons 133.7 5550.6 5684.3 .. .. 5968.5
Cement " " 3701.2 40183.2 43884.4 .. .. 46078.6
Glass sheets " " 35.3 170.9 206.2 .. .. 216.5
Phosphatic fertilizers " " 604.0 1006.4 1610.4 .. .. 1690.9
Azotic fertilizers " " 501.6 12675.0 13176.6 .. .. 13835.4
Caustic soda Thousand tons 157.5 0.0 157.5 .. .. 165.4
Tyres Thousands 768.6 5377.2 6145.8 .. .. 6453.1
Laundry soap Thousand tons 55.0 405.8 460.8 .. .. 483.8
Toilet soap Thousand tons 41.2 172.0 213.2 .. .. 223.8
..Not available
- 124 -
Source : Ministry of Planning.
Products
(1/7) Output of Main Industrial Products
2011/2012
Relative
Weights 2010 2011 2012 2010/2011 2011/2012
All Items 100.0 102.4 114.5 122.8 11.8 7.3
Food & non-alcoholic beverages 39.92 105.9 126.0 137.6 19.0 9.2
Alcoholic beverages and Tobacco 2.19 100.0 169.9 201.8 69.9 18.8
Clothing & footwear 5.41 100.0 102.2 106.8 2.2 4.5
Housing, water, electricity, gas & fuel 18.37 99.3 100.4 107.7 1.1 7.2
Furnishings, household equipment & routine maintenance of the house 3.77 102.6 105.2 114.4 2.5 8.8
Health 6.33 100.0 101.9 102.0 1.9 0.1
Transportation 5.68 100.6 101.7 104.5 1.1 2.8
Communications 3.12 99.9 100.0 95.5 0.1 -4.5
Recreation & culture 2.43 102.4 108.4 117.8 5.9 8.6
Education 4.63 100.0 124.3 136.6 24.3 9.9
Restaurants & hotels 4.43 100.2 112.4 116.5 12.1 3.6
Miscellaneous goods and services 3.72 100.7 103.2 104.5 2.4 1.3
Source: Central Agency for Public Mobilization and Statistics( CAPMAS), (Monthry Bulletin of Consumer Price Index) .
* The 9th series of CPI was introduced in August 2010. The weights involved in the formation of the Index were taken from the results of the 2008/2009 survey
of income, expenditure and consumption using January 2010 as a base period.
- 125 -
Inflation Rate (%)
(1/8) Consumer Price Index (Urban Population) (January 2010=100) *
Group Fiscal YearEnd of June
Relative
Weights 2010 2011 2012 2010/2011 2011/2012
All Items 100.0 160.9 192.1 185.0 19.4 -3.7
Agriculture, Forestry and Fishing 25.10 210.9 261.4 243.9 23.9 -6.7
Mining and Quarrying 21.80 147.8 201.5 181.1 36.3 -10.1
Manufacturing 38.90 149.6 165.0 168.1 10.3 1.9
Electricity, Gas, Steam and Air Conditioning Supply 2.30 140.3 140.3 140.3 0.0 0.0
Water Supply, Sewerage,Waste Management and Remediation Activities 2.00 146.5 146.5 157.3 0.0 7.4
Transportation and Storage 2.80 124.8 127.3 131.1 2.0 3.0
Accommodation and Food Service Activities 5.00 110.6 125.1 129.3 13.1 3.4
Information and Communications 2.10 112.5 112.5 112.5 0.0 0.0
Source: Central Agency for Public Mobilization and Statistics (CAPMAS),(Monthly PPI Bulletin issued every two months).
- 126 -
(1/9) Producer Price Index (PPI) (2004/2005 = 100)
Inflation Rate (%)
Group Fiscal YearEnd of June
(LE mn)
End of June 2006 2007 2008 2009 2010 2011 2012
Reserve Money 116050 134126 169911 175104 203071 250992 263668
Currency in circulation outside CBE * 78604 92174 111412 126268 144253 179096 204870
Banks' deposits in local currency 37446 41952 58499 48836 58818 71896 58798
Counterpart Assets 116050 134126 169911 175104 203071 250992 263668
Net Foreign Assets + 61302 95372 180333 171732 190234 147197 76059
Foreign Assets 129477 160197 182021 173055 198605 156331 92168
Gold 6429 6744 8695 9385 12393 16343 19979
Foreign securities 48353 108606 151175 150556 162247 114608 51524
Foreign currencies 74695 44847 22151 13114 23965 25380 20665
Foreign Liabilities** 68175 64825 1688 1323 8371 9134 16109
Net Domestic Assets 54748 38754 -10422 3372 12837 103795 187609
Net Claims on Government 114055 117254 81872 68613 80611 102562 165374
Claims; of which: 171808 192192 159697 146899 150288 189620 256605
Government securities ** 164761 166724 123123 121708 121533 130597 178831
Deposits 57753 74938 77825 78286 69677 87058 91231
Net Claims on Banks 1018 59512 77581 334 29010 147 -2706
Claims 17412 77270 97828 21786 49863 23496 22296
Deposits in foreign currencies 16394 17758 20247 21452 20853 23349 25002
Other Items (Net)+ -60325 -138012 -169875 -65575 -96784 1086 24941
Source : Central Bank of Egypt.
* Including subsidiary coins issued by the ministry of Finance.
** The decrease in CBE's obligations in Foreign currencies, as well as the claims on government represented in securities and unclassified
assets (net) due to the settelment of the rescheduled debts under Paris Club Agreement.
+ According to the updated statistical treatment adopted by the IMF, SDR allocations are to be classified as foreign liabilities rather
than capital accounts, as of August 2009.
- 127 -
(2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets
End of June 2006 2007 2008 2009 2010 2011 2012
1- Domestic Liquidity 560356 662688 766664 831211 917459 1009411 1094408
A- Money Supply 109274 131290 170579 182991 214040 248707 274510Currency in circulation outside the banking system 74239 86860 104656 118146 135209 167887 194027Demand deposits in local currency 35035 44430 65923 64845 78831 80820 80483
B- Quasi-Money 451082 531398 596085 648220 703419 760704 819898Time & saving deposits in local currency 314188 377424 436268 481054 545303 583732 633858Demand and time & saving deposits in foreign currencies 136894 153974 159817 167166 158116 176972 186040
2- Counterpart AssetsNet foreign assets 133385 218629 303680 * 254134 282408 253500 157624Domestic credit 509532 531314 570953 * 695326 775268 892766 1072566Other items (net) -82561 -87255 -107969 -118249 -140217 -136855 -135782
* The settlement of the rescheduled debts under Paris Club Agreement.
Source : Central Bank of Egypt.
- 128 -
(LE mn)
(2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets
End of June 2006 2007 2008 2009 2010 2011 2012Total Deposits in Local Currency 349223 421854 502191 545899 624134 664552 714341
1- Demand Deposits 35035 44430 65923 64845 78831 80820 80483
Public business sector * 4934 6278 8698 7145 8938 6670 7363
Private business sector 15863 20681 34301 33240 41246 43324 39083
Household sector 14831 18378 24003 25235 29510 31645 34944
Minus: Purchased cheques & drafts 593 907 1079 775 863 819 907
2- Time and Saving Deposits 314188 377424 436268 481054 545303 583732 633858
Public business sector * 15465 17186 20736 21654 23788 22608 17480
Private business sector 25580 56823 85415 71076 73183 60736 53862
Household sector 273143 303415 330117 388324 448332 500388 562516
- 129 -
Source : Central Bank of Egypt.* Including all public sector companies subject or not to Law No. 203 for 1991.
(LE mn)
(2/1/3) Banking Survey: Deposits in Local Currency
End of June 2006 2007 2008 2009 2010 2011 2012
Total Deposits in Foreign Currencies 136894 153974 159817 167166 158116 176972 186040
1- Demand Deposits 18533 26917 26581 32050 33901 41298 44965
Public business sector * 935 947 943 1334 1055 1248 980
Private business sector 10417 18453 17417 21104 22313 26039 29669
Household sector 7392 7689 8404 9712 10673 14077 14443
Minus: Purchased cheques & drafts 211 172 183 100 140 66 127
2- Time and Saving Deposits 118361 127057 133236 135116 124215 135674 141075
Public business sector * 4734 5774 8202 7401 5419 6301 7832
Private business sector 28845 30641 39785 37217 32594 34202 34827
Household sector 84782 90642 85249 90498 86202 95171 98416
- 130 -
Source: Central Bank of Egypt.
* Including all public sector companies subject or not to Law No. 203 for 1991.
(LE mn)
(2/1/4) Banking Survey : Deposits in Foreign Currencies
End of June 2006 2007 2008 2009 2010 2011 2012
Net Foreign Assets 133385 218629 303680 254134 282408 253500 157624
1- Foreign Assets 218982 304968 330770 282914 322209 295480 206964
Central Bank of Egypt 129477 160197 182021 173055 198605 156331 92168
Banks 89505 144771 148749 109859 123604 139149 114796
2- Foreign Liabilities 85597 86339 27090 28780 39801 41980 49340
Central Bank of Egypt + 68176 64825 1688 * 1323 8371 9134 16109
Banks 17421 21514 25402 27457 31430 32846 33231
(LE mn)
(2/1/5) Banking Survey: Foreign Assets and Liabilities
- 131 -
+ According to the reclassification of the SDR allocations, as mentioned in the footnote of table (2/1/1).
Source: Central Bank of Egypt.
* Due to the agreement between the CBE and the government, as mentioned in the footnote of table (2/1/1).
End of June 2006 2007 2008 2009 2010 2011 20121-Domestic Credit 509532 531314 570953 695326 775268 892766 1072566
Net claims on the government (A+B-C) 184131 178323 174005 273122 326141 437337 578654
A-Securities 295974 278011 271788** 397804 440410 542792 677139
B-Credit facilities 28044 52151 67732 55939 68139 98826 111362
C-Government deposits 139887 151839 165515 180621 182408 204281 209847
Claims on public business sector * 32888 24446 26897 33146 29985 32981 40620
Claims on private business sector 239338 268607 291719 304470 326350 323241 340865
Claims on household sector 53175 59938 78332 84588 92792 99207 112427
2-Other Items (Net) -82561 -87255 -107969 -118249 -140217 -136855 -135782Capital accounts+ -102139 -114534 -135401 -148332 -170877 -146543 -168778
Net unclassified assets and liabilities 19578 27279 27432** 30083 30660 9688 32996
(LE mn)
(2/1/6) Banking Survey: Domestic Credit / Other Items (Net)
+ According to the reclassification of the SDR allocations, as mentioned in the footnote of table (2/1/1).
- 132 -
* Including all public sector companies subject or not to law No 203 for 1991.
Source: Central Bank of Egypt.
** Due to the settlement reached with the government on rescheduled debt under Paris Club Agreement.
End of June 2006 2007 2008 2009 2010 2011 2012
Total Saving Vessels 560229 655376 742177 803063 794350 855132 917643
Savings at the Banking System 451082 531398 596085 648220 703419 760704 819898
Time & saving deposits in local currency 314188 377424 436268 481054 545303 583732 633858
Demand and time & saving deposits in foreign currencies 136894 153974 159817 167166 158116 176972 186040
Net Sales of Investment Certificates 63697 68311 79354 81262 90931 94428 97745
Post Office Saving Deposits 45450 55667 66738 73581 N.A N.A N.A
- 133 -
Source: Central Bank of Egypt.
(2/1/7) Total Saving Vessels
(LE mn)
End of June 2006 2007 2008 2009 2010 2011 2012
Total 32642 24188 26652 32880 29812 32688 40417
In Local Currency 26269 18097 19475 23725 21051 24560 31581
Agriculture 59 7 11 3 3 105 0
Manufacturing 16215 9071 9066 13167 9258 10167 14465
Trade 4318 3986 4114 4098 1737 918 1651
Services 5677 5033 6284 6457 10053 13370 15465
In Foreign Currencies 6373 6091 7177 9155 8761 8128 8836
Agriculture 0 0 0 0 0 0 0
Manufacturing 3752 2611 3440 4176 3294 2237 1938
Trade 1556 880 709 1281 1566 934 955
Services 1065 2600 3028 3698 3901 4957 5943
Source: Central Bank of Egypt.
* Including all public sector companies subject or not to Law No. 203 for 1991.
- 134 -
(LE mn)
(2/1/8) Bank Lending and Discount Balances to Business Sector
Public Business Sector*
End of June 2006 2007 2008 2009 2010 2011 2012
Total 214676 239312 258087 267885 287148 284755 304386
In Local Currency 150492 163292 167258 177107 185694 187810 207334
Agriculture 4794 6922 5326 4718 4461 6294 4573
Manufacturing 55827 65453 62693 74053 76229 78448 92476
Trade 39110 33487 38342 39881 49486 36265 39245
Services 50761 57430 60897 58455 55518 66803 71040
In Foreign Currencies 64184 76020 90829 90778 101454 96945 97052
Agriculture 829 929 843 2145 1534 2314 1398
Manufacturing 26072 34199 43349 41240 53355 48550 52260
Trade 12337 10944 14599 13356 13563 9508 7616
Services 24946 29948 32038 34037 33002 36573 35778
Source: Central Bank of Egypt.
- 135 -
(LE mn)
(2/1/8) Bank Lending and Discount Balances to Business Sector (Contd.)
Private Business Sector
End of June Number of Banks Operating in Egypt
Number of Branches Banking Density *
2006 43 2944 24.5
2007 41 3056 24.2
2008 40 3297 22.9
2009 39 3443 22.3
2010 39 3502 22.3
2011 39 3573 22.5
2012 40** 3610 22.7
* Population in thousand / Banking unit.
** After including the Arab International Bank in the banks' record, and being under the supervision of the CBE as of 5/6/2012.
(2/2/1) Structure of Egyptian Banking System
and Banking Density
Source : Central Bank of Egypt.
- 136 -
Name Registration Date Address
Al-Raghi Banking & Investment Corporation* 20/10/1993 19 Adly St.,2nd Floor , Apart. 59, Cairo.
Bank of New York Mellon 27/10/1993 9 Abd El- Moneim Riad St., Dokki, Giza.
Commerz Bank AG. 31/05/1994 Building No. 2401 B, 1st Floor, Smart Village, Cairo-Alex. Highway (28 Km).
Monte dei Paschi di Siena S.P.A. 05/07/1994 10 Sarai EL- Gezeera St.,2nd Floor, Flat No. 5, Zamalek 11211,Cairo.
Union De Banques Arabes et Francaises (UBAF) 15/08/1994 4 Behlar Passage, Kasr El-Nil St., Cairo.
State Bank of India 03/10/1994 15 Kamel El-Shinnawy St., Garden City, Cairo.
Deutsche Bank AG. 10/11/1994 6 Poulis Hanna St., Dokki, Giza.
Intesa SanPaolo Spa. 13/03/1995 3 Abo Elfeda St., Zamalek, Cairo.
JP Morgan Chase Bank N.A. 05/08/1996 3 Ahmed Nessim St., Giza.
Bank of Tokyo Mitsubishi UFJ Ltd. 04/03/1997 Nile City Towers, South Tower, 10th Floor/C, Corniche El-Nil, Cairo.
UBS AG. 22/10/1997 International Trade Building, 1191 Corniche El-Nil St., 13th Floor, Cairo.
Credit Suisse AG. 16/03/1998 Nile City Towers, North Tower, Ramlah Boulak, Cairo.
Wells Fargo Bank, National Association 06/05/1998 9 El-Gomhoria El-Motahida Square, Dokki,Giza.
Credit Industriel et Commercial, CIC. 22/07/1999 28 Sherif St., Cairo.
B.H.F Bank A.G. 02/08/1999 8 El-Sadd El-Aley St., Dokki, 12311,Giza.
Royal Bank Of Scotland (RBS) 17/11/1999 31 Gezirat El-Arab St., Mohandeseen, Giza.
Natixis 22/03/2000 El-Kamel Building, 54/B, Banks Zone, 6th of Oct, Giza.
Den Norske Bank* 27/05/2001 19 El-Gabalaya St., Zamalek, Cairo.
Bank of Valleta Plc. 10/07/2003 7 EL-Thawra Square, 7th Floor, Flat No.71, Dokki, Giza.
Sumitomo Mitsui Banking Corporation 19/01/2004 3 Ibn Kassir, Corniche El-Nile St., 14th Floor, Flat No. 6, Giza.
Standard Chartered Bank 12/09/2005 El Sheikha Fatma St., City Stars Towers, Star Capital (2), Office No. 21-22, Misr El-Gadedah, Cairo.
Sudanese Egyptian Bank 28/05/2008 4 Ahmed Basha St., 16th Floor, Garden City, Cairo.
China Development Bank Corporation 02/11/2009 Apartment no. 1 & 2, Building 41 , St. 18., Maadi, Cairo.
Türkiye İş Bankasi, A.Ş. 31/03/2010 Nile City Towers, North Tower, 27th Floor, Corniche El-Nil, Cairo.
CaixaBank S.A 08/07/2012 Nile City Towers, North Tower, 23rd Floor, Corniche El-Nil, Cairo.
Source : Central Bank of Egypt.
* Not operating
(2/2/2) Representation Offices of Foreign Banks in Egypt Registered with the CBE (on June 30, 2012)
- 137 -
Fund Name Fund Manager Par Value (LE)
Net Asset Value (LE) at End of June 2011
Net Asset Value (LE) at End of June 2012
Open-end Balance FundsNational Bank of Egypt I + Al Ahly Funds Management 10 37.22 34.54Banque Misr I Misr Capital Investments 100 97.10 91.50National Bank of Egypt II Al Ahly Funds Management 100 77.99 68.91El Watany Bank of Egypt NBK Capital Asset Management - Egypt 100 120.12 127.76National Bank of Egypt V Al Ahly Funds Management 10 9.25 8.32Al-Massi Hermes Funds Management 100 95.35 95.83Kheir Fund Acumen Asset Management 10 9.08 9.89Credit Agricole Egypt IV (Al Theqa) HC Securities 100 - 110.34NSGB (Tawazon) Beltone Asset Management 100 94.46 89.28
Open-end Equity FundsCredit Agricole Egypt I Hermes Funds Management 100 180.04 157.71Bank of Alexandria I Hermes Funds Management 100 171.46 143.31Arab Misr Insurance Group ++ Prime Investments Fund Management 100 137.54 136.88Banque Misr II Misr Capital Investments 66.67 43.79 40.15Banque de Caire Hermes Funds Management 10 42.83 38.5Export Development Bank I (El-Khabeer) HC Securities 33.33 63.44 52.68Suez Canal Bank I HC Securities 500 252.00 213.21Credit Agricole Egypt II Hermes Funds Management 100 87.67 77.08Egyptian Gulf Bank Hermes Funds Management 100 118.55 100.56Banque Misr III HC Securities 100 358.27 301.22Shield Fund +++ Arab African Investment Management 50 102.88 98.61Misr Iran Development Bank I HC Securities 100 299.08 261.91National Bank of Egypt III++++ HC Securities 100 66.40 57.87Commercial International Bank II (Istethmar) CI Asset Management 100 59.99 54.65Piraeus Bank-Egypt I Piraeus Bank- Egypt Asset Management 100 92.68 90.75Housing & Development Bank (Al-Taameer) Prime Investments Fund Management 100 89.57 89.72ABC Bank Delta Rasmala Funds Management 100 77.71 72.31Suez Canal Bank II (Al-Agyal) Beltone Asset Management 10 8.54 6.97Blom Bank Prime Investments Fund Management 100 88.98 90.44Pharos Fund I Pharos Asset Management 100 88.91 81.86Pioneers Fund I Amwal for Financial Investments 100 88.84 78.13Misr Al Mostakbal HC Securities 10 - 12.00Belton Traded Equity Fund (Insight) Beltone Asset Management 10 7.99 5.87NSGB (Tadawol) HC Securities 100 - 103.02
Open-end Fixed Income FundsCredit Agricole Egypt III Egyptian Fund Management Group 1000 1037.44 1052.91Misr Money Mareket Beltone Asset Management 10 17.46 19.23Commercial International Bank I (Osoul) CI Asset Management 100 166.74 183.47Misr Iran Development Bank II HC Securities 1000 1000.46 1000.00Bank of Alexandria II EFG-Hermes 10 15.17 16.70National Bank of Egypt IV Al Ahly Funds Management 100 148.04 162.31National Societe Generale Bank (Themar) EFG-Hermes 100 145.41 159.86Export Development Bank II Delta Rasmala Funds Management 100 144.14 158.57ABC Bank (Mazaya) Beltone Asset Management 10 11.76 12.87HSBC Egypt Bank Fund (Kol Youm) Beltone Asset Management 100 117.65 129.54AAIB( Juman) Arab African Investment Management 100 117.26 128.95Piraeus bank- Egypt II Piraeus Bank- Egypt Asset Management 10 11.67 12.76Audi Bank Fund EFG-Hermes 10 11.65 12.81Banque du Caire II (El Kahera El Youmy) Beltone Asset Management 10 11.39 12.53Blom Bank Fund II CI Asset Management 100 113.89 126.07Al Watany Bank of Egypt Fund (Eshrak) NBK Capital Asset Management - Egypt 10 11.10 12.19Arab Bank Fund (Youmati) Beltone Asset Management 10 11.08 12.20Housing & Development Bank (Mawared) Prime Investments Fund Management 10 11.00 12.03Bank of Alexandria III EFG-Hermes 10 10.77 11.79Prinicipal Bank for Development & Agricultural Credit (Hasad) HC Securities 10 10.88 11.99Arab Investment Bank Fund I EFG-Hermes 10 10.80 11.89Egyptian Gulf Bank Fund (Tharaa) Prime Investments Fund Management 10 10.21 10.71Ahli United Bank (Tharwa) Cairo Funds Management 100 - 103.47CIB (El Thabet) CI Asset Management 100 - 108.54Al Watany Bank of Egypt Fund (Namaa) NBK Capital Asset Management - Egypt 10 - 10.62National Bank of Egypt VIII Ahly Funds Managements 1000 - 1043.28Arab Investment Bank Fund III (Sanady) HC Securities 10 - 10.67AAIB(Gozoor) Arab African Investment Management 10 - 10.28EDBE III (Al Zahabi) Prime Investments Fund Management 100 - 102.16
- 138 -
(2/2/3) Local Mutual Funds Authorized and Operating as at 30/6/2012
Fund Name Fund Manager Par Value (LE)
Net Asset Value (LE) at End of June 2011
Net Asset Value (LE) at End of June 2012
Open-end Islamic Money Market FundsThe United Bank Fund (Al Rakhaa) CI Asset Management 100 - 101.10
Open-end Islamic FundsFaisal Islamic Bank EFG-Hermes 100 87.41 70.44Al Baraka Bank Egypt EFG-Hermes 100 63.89 53.05Faisal Islamic Bank - CIB (Al Amman) CI Capital Asset Management 100 44.59 39.96Banque Misr IV HC Securities 100 68.59 61.10Sanabel Fund+++++ Prime Investments Fund Management 100 73.08 71.46Egyptian Saudi Finance -National Bank of Egypt (Bashayer) Al Ahly Fund Management 100 69.87 60.77El Watany Bank of Egypt(Alhayah) NBK Capital Asset Management - Egypt 10 9.49 8.94Arab Investment Bank Fund II (Helal) Cairo Funds Management 100 100.30 103.42Naeem Misr Fund Naeem for Financial Investments 100 - 108.64Al Wefak HC Securities 10 - 8.79
Mixed Income FundsAl Rabeh Fund Prime Investments Fund Management 100 100.98 102.37
Open-end Islamic Balanced FundsAl Baraka Bank - Egypt (Al Motawazen) AT. Asset Management 100 96.33 84.91
Closed-end FundsOrient Trust Egyptian Investment & Finance Co. 1000 1223.14 1134.38Misr Direct Investment Fund++++++ Al Ahly Development & Investment 1000 1035.00 -Arab Land Direct Prime Investments Fund Management 1000 695.78 685.51
Capital Guaranteed FundsMisr Bank (El Omr Fund) Cairo Funds Management 100 233.51 253.62
Capital Protected FundsCIB Fund (Hamaya) CI Capital Asset Management 100 102.84 112.05
Asset Allocator FundsSociete Arab Int'l Banque I +++++++ Prime Investments Fund Management 100 390.84 387.21Societe Arab Int'l Banque II Prime Investments Fund Management 100 270.22 265.40
Foreign Currency FundsMisr Money Market ($) Beltone Asset Management 10$ 10.70$ 10.75$Misr Money Market (Euro) Beltone Asset Management 10 € 10.75 € 10.83 €
Fund of FundsMisr Iran Development Bank III (Wafi) El Rashad Asset Management 10 8.92 8.21National Bank of Egypt VII El Rashad Asset Management 100 84.30 76.89
Source: Monthly Bulletin of Egyptian Stock Exchange. + The fund's document has been split into ratio of 1: 50 as of 29/11/2007. The fund has also changed its structure from Balanced to Equity during the period (12 March 2009 - 4 February 2010).++ The document has been split into ratio of 1:5 as of 10/11/2009. +++ The name of Misr International Bank fund has changed to Shield Fund starting from 2/4/2006 and the document has been split into a ratio of 1:2 on the same date. The par value has also changed from LE 100 to LE 50.++++ The fund has changed its type effective from 18/8/2011 to become an open-end equity fund instead of an open-end balanced fund. +++++ The Management Contract for Sanabel Fund Matured on 22 December 2011. ++++++ The fund has been de-listed from trading on the stock exchange. +++++++ The fund's document has been split into ratio of 1: 5 and the par value has also changed from LE 500 to LE 100 as of 29/3/2007.
- 139 -
(2/2/3) Local Mutual Funds Authorized and Operating as at 30/6/2012 (Contd.)
End of June 2006 2007 2008 2009 2010 2011 2012
Total 79253 93499 112705 127912 146220 180118 207824
Currency By Denomination+ 79017 93240 112430 127625 145914 179794 207473
PT 25 136 144 147 160 184 161 147
PT 50 241 240 252 309 294 303 296
LE 1 545 565 608 772 845 909 890
LE 5 1121 1071 1169 1309 1619 2738 1944
LE 10 4274 3470 2938 2991 2930 2983 2940
LE 20 9226 8796 7394 6419 5619 9950 7809
LE 50 27959 28152 25646 23045 18836 22350 21720
LE 100 35515 47552 54987 61561 69299 73444 83606
LE 200* 3250 19289 31059 46288 66956 88121
Subsidiary Denominations** 236 259 275 287 306 324 351
Source: Central Bank of Egypt.
+ Including coins denominations of 50, 100 piasters.
* The LE 200 note has been in circulation as of May 2007.
** Issued by the Ministry of Finance.
- 140 -
(LE mn)
(2/3/1) Note Issued by Denomination
End of June 2006 2007 2008 2009 2010 2011 2012
Total 78604 92175 111412 126268 144254 179096 204870
Subsidiary Coins & Notes* 236 259 275 287 306 324 351
PT 25 135 142 145 158 184 161 147
PT 50 239 234 242 308 293 302 296
LE 1 540 550 591 770 843 907 888
LE 5 1095 987 1105 1257 1495 2654 1897
LE 10 4215 3323 2845 2911 2844 2886 2797
LE 20 9128 8553 7194 6297 5480 9672 7527
LE 50 27737 27967 25422 22898 18704 22246 20629
LE 100 35279 47136 54529 60867 68641 73269 82961
LE 200+ 3024 ـــ 19064 30515 45464 66675 87377
Source: Central Bank of Egypt.
* Issued by the Ministry of Finance.
+ The LE 200 note has been in circulation as of May 2007.
- 141 -
(LE mn)
(2/3/2) Currency in Circulation Outside CBE by Denomination
During FY 2006/2007 2007/2008 2008/2009 2009/2010 2010/2011 2011/2012
Local Currency Transactions via RTGS*
1- Automated Clearing House (ACH)
Number of transactions (thousand) 10481 11724 12062 12994 13012 12829
Value of transactions (LE mn) 356900 483113 548038 584546 626757 661196
2- Other Transactions via RTGS**
Number of transactions (in unit) 525236 700668 897205 1191374 1248692 1298763
Value of transactions (LE mn) 2280198 3092401 5294357 13274676 15879701 9402300
Foreign Currency Transfers (Dollar Interbank Transactions) via the Fin-Copy System***
Number of transactions (in unit) 12070 13925 12365 12204 15066 14080
Value of transactions (US$ mn) 78997 105587 83019 70008 88052 62321
Source: Central Bank of Egypt.* The RTGS was launched on 15 /3/ 2009.
** Including corridor operations and deposits for monetary policy purposes as of 15/3/2009.
*** This service was introduced on 19/ 9/ 2004.
(2/3/3) CBE: Transactions via RTGS and SWIFT
- 142 -
End of June 2006 2007 2008 2009 2010 2011 2012
Assets
Cash 6813 7705 10261 11128 12448 14830 14534Securities & investments in TBs of which: 193965 176098 201858 332597 405895 474176 555326
CBE notes 21563 17617 - - - - -
Balances with banks in Egypt, of which: 121695 217363 278185 173482 200719 117010 104270
Loans and discounts 413 946 1307 775 729 885 978
Balances with banks abroad, of which: 72554 124366 122792 77120 57371 96080 75904
Loans and discounts 1273 2836 2448 1869 2004 1398 2714
Loan and discount balances 324041 353746 401425 429957 465990 474139 506736
Other assets 42494 58645 68790 67709 78232 93455 109390
Assets =Liabilities 761562 937923 1083311 1091993 1220655 1269690 1366160LiabilitiesCapital 27112 33037 37576 41550 46598 59049 67345
Reserves 13418 12552 19763 21371 28486 22056 25539
Provisions 54950 53469 62314 69748 70418 55106 54127
Long-term loans & bonds 17526 26351 22285 22045 21697 26180 27840
Obligations to banks in Egypt 21488 82619 98699 31004 53881 28171 19009
Obligations to banks abroad 8770 10006 13327 18195 20305 15168 14792
Total deposits 568841 649953 747199 809694 892492 957037 1023517
Other liabilities, of which: 49457 69936 82148 78386 86778 106923 133991
Cheques payable 2973 5801 4450 3576 4764 5143 4848
- 143 -
Source : Central Bank of Egypt.
( LE mn )
(2/4/1) Banks : Aggregate Financial Position
End of June 2006 2007 2008 2009 2010 2011 2012
Total Deposits 568841 649953 747199 809694 892492 957037 1023517
Demand deposits 62431 78759 100569 102853 119518 130087 133705
Time & Saving deposits and saving accounts 479805 542982 612737 673048 738650 789407 851116
Blocked or retained deposits 26605 28212 33893 33793 34324 37543 38696
Local Currency Deposits 401143 463320 552079 598587 686052 724878 777806
Demand deposits 41793 50366 71971 69262 84152 86967 86742
Time & Saving deposits and saving accounts 345953 396351 460285 509156 580020 615839 666995
Blocked or retained deposits 13397 16603 19823 20169 21880 22072 24069
Foreign Currency Deposits 167698 186633 195120 211107 206440 232159 245711
Demand deposits 20638 28393 28598 33591 35366 43120 46963
Time & Saving deposits and saving accounts 133852 146631 152452 163892 158630 173568 184121
Blocked or retained deposits 13208 11609 14070 13624 12444 15471 14627
- 144 -
Source : Central Bank of Egypt.
(2/4/2) Banks : Deposits by Maturity
( LE mn )
End of June 2006 2007 2008 2009 2010 2011 2012
Total Deposits 568841 649953 747199 809694 892492 957037 1023517
Local Currency Deposits 401143 463320 552079 598587 686052 724878 777806
Government sector 49422 37233 44789 49564 58496 56728 58930
Public business sector * 20399 23464 29434 28800 32726 29278 24843
Private business sector 41444 77504 119716 104250 114372 103965 92697
Household sector 287973 321793 354119 413558 477842 532032 597459
External sector ** 1905 3326 4021 2415 2616 2875 3877
Foreign Currency Deposits 167698 186633 195120 211107 206440 232159 245711
Government sector 29290 30329 33203 41481 45618 51403 55731
Public business sector * 5668 6721 9146 8735 6474 7549 8812
Private business sector 39263 49093 57202 58321 54907 60241 64496
Household sector 92174 98331 93653 100210 96875 109248 112859
External sector ** 1303 2159 1916 2360 2566 3718 3813
Source : Central Bank of Egypt.
* Including all public sector companies subject or not to Law No. 203 for 1991.
** Including counterpart deposits of USAID.
(2/4/3) Banks : Deposits by Sector - 145 -
( LE mn )
End of June 2006 2007 2008 2009 2010 2011 2012Total Deposits 568841 649953 747199 809694 892492 957037 1023517
Local Currency Deposits 401143 463320 552079 598587 686052 724878 777806
Agriculture 2215 2531 5673 6323 5072 3792 2820
Manufacturing 19903 23819 36169 37537 38302 38119 31985
Trade 12793 18354 23928 20850 27829 24304 21097
Services 38245 40529 59337 53846 64895 62311 55171
Unclassified sectors 327987 378087 426972 480031 549954 596352 666733
Foreign Currency Deposits 167698 186633 195120 211107 206440 232159 245711
Agriculture 855 467 1002 904 930 771 935
Manufacturing 18159 21208 26223 27757 23772 24876 27775
Trade 8250 11824 10263 12046 11065 14182 15014
Services 21602 23216 30202 25848 25767 28529 27432
Unclassified sectors 118832 129918 127430 144552 144906 163801 174555
Source : Central Bank of Egypt.
( LE mn )
(2/4/4) Banks : Deposits by Economic Activity
- 146 -
End of June 2006 2007 2008 2009 2010 2011 2012
Total 172402 158481 201858 332597 405895 474176 555326
In Local Currency 140840 125981 168182 297194 338834 442648 494934
Government sector 115146 96652 135129 262044 303297 407814 461821
Public business sector * 859 761 1414 1338 1052 980 714
Private business sector 24835 28568 31609 33755 34394 33764 32310
Household sector - - - - - - -
External sector - - 30 57 91 90 89
In Foreign Currencies 31562 32500 33676 35403 67061 31528 60392
Government sector 16067 14636 13536 14051 15579 4382 36488
Public business sector * - - - - - - -
Private business sector 3545 3474 4914 5532 5597 5475 4708
Household sector - - - - - - -
External sector 11950 14390 15226 15820 45885 21671 19196
Source : Central Bank of Egypt.
+ Excluding CBE Notes.* Including all public sector companies subject or not to Law No. 203 for 1991.
- 147 -
(2/4/5) Banks : Portfolio Investments by Sector+
( LE mn )
End of June 2006 2007 2008 2009 2010 2011 2012Total 324041 353746 401425 429957 465990 474139 506736
In Local Currency 238926 248544 267166 295192 313654 327764 364175
Government sector 11285 10788 9698 12946 15389 18191 14615
Public business sector * 26269 18097 19475 23725 21051 24560 31581
Private business sector 150491 163292 167258 177107 185694 187810 207334
Household sector 50158 55453 69838 78827 90266 96112 109738
External sector 723 914 897 2587 1254 1091 907
In Foreign Currencies 85115 105202 134259 134765 152336 146375 142561
Government sector 9712 15896 21460 17802 23995 21611 18974
Public business sector * 6373 6091 7177 9155 8761 8127 8836
Private business sector 64184 76020 90829 90778 101454 96945 97052
Household sector 3017 4485 8494 5762 2526 3095 2690
External sector 1829 2710 6299 11268 15600 16597 15009
Source : Central Bank of Egypt.
* Including all public sector companies subject or not to Law No. 203 for 1991.
(2/4/6) Banks : Lending and Discount Balances by Sector
( LE mn )
- 148 -
End of June 2006 2007 2008 2009 2010 2011 2012Total 496443 512227 603283 762554 871885 948315 1062062
In Local Currency 379766 374525 435348 592386 652488 770412 859109
Government sector 126431 107440 144827 274990 318686 426005 476436
Public business sector * 27128 18858 20889 25063 22103 25540 32295
Private business sector 175326 191860 198867 210862 220088 221574 239644
Household sector 50158 55453 69838 78827 90266 96112 109738
External sector 723 914 927 2644 1345 1181 996
In Foreign Currencies 116677 137702 167935 170168 219397 177903 202953
Government sector 25779 30532 34996 31853 39574 25993 55462
Public business sector * 6373 6091 7177 9155 8761 8127 8836
Private business sector 67729 79494 95743 96310 107051 102420 101760
Household sector 3017 4485 8494 5762 2526 3095 2690
External sector 13779 17100 21525 27088 61485 38268 34205
Source : Central Bank of Egypt.
* Including all public sector companies subject or not to Law No. 203 for 1991.
(2/4/7) Banks : Credit by Sector
( LE mn )
- 149 -
End of June 2006 2007 2008 2009 2010 2011 2012Total 324041 353746 401425 429957 465990 474139 506736
In Local Currency 238926 248544 267166 295192 313654 327764 364175
Agriculture 4902 6986 5758 5137 4856 6800 4822
Manufacturing 77734 80497 76793 94674 94810 100646 116282
Trade 43564 37476 42456 44079 51241 37186 41016
Services 61679 67035 71208 69766 70931 85578 91062
Unclassified sectors 51047 56550 70951 81536 91816 97554 110993
In Foreign Currencies 85115 105202 134259 134765 152336 146375 142561
Agriculture 829 929 863 2165 1554 2314 1398
Manufacturing 38517 51399 67690 61808 79423 70744 71868
Trade 13930 11837 15319 14646 15134 10445 8571
Services 26983 33842 35594 39117 38084 43180 43024
Unclassified sectors 4856 7195 14793 17029 18141 19692 17700
Source : Central Bank of Egypt.
(2/4/8) Banks : Lending and Discount Balances by Economic Activity
( LE mn )
- 150 -
More than one-month and less than or equal to
three-month deposits
More than three-month and less than or equal to
six-month deposits
More than six-month and less than or equal to
one year deposits
Less than or equal to one year loans
SimpleReturn
Of increasingcertificate value
January 2010 8.50 5.90 6.40 6.70 11.10 9.50 9.00 9.00
February ,, 5.90 6.40 6.70 11.00 ,, ,, ,,
March ,, 6.00 6.40 6.70 11.10 ,, ,, ,,
April ,, 6.00 6.40 6.70 11.10 ,, ,, ,,
May ,, 5.90 6.50 6.80 11.20 ,, ,, ,,
June ,, 6.30 6.90 7.30 11.10 ,, ,, ,,
July ,, 6.30 6.90 7.20 11.10 ,, ,, ,,
August ,, 6.30 6.90 7.20 10.90 ,, ,, ,,
September ,, 6.40 7.00 7.20 10.90 ,, ,, ,,
October ,, 6.60 6.90 7.30 11.00 ,, ,, ,,
November ,, 6.60 6.90 7.30 10.90 ,, ,, ,,
December ,, 6.60 6.90 7.20 10.70 ,, ,, ,,
January 2011 ,, 6.50 6.90 7.30 10.70 ,, ,, ,,
February ,, 6.50 6.90 7.20 10.60 ,, ,, ,,
March ,, 6.50 6.90 7.30 10.70 ,, ,, ,,
April ,, 6.60 6.90 7.30 10.80 ,, ,, ,,
May ,, 6.70 6.90 7.40 10.80 ,, ,, ,,
June ,, 6.60 6.90 7.40 11.00 ,, ,, ,,
July ,, 6.70 6.90 7.60 11.00 ,, ,, ,,
August ,, 6.70 6.90 7.60 11.10 ,, ,, ,,
September ,, 6.80 6.90 7.60 11.20 ,, ,, ,,
October ,, 7.00 7.00 7.70 11.30 10.00 9.50 ,,
November 9.50 7.10 7.00 7.70 11.40 11.50 11.00 ,,
December ,, 7.20 7.10 7.80 11.80 ,, ,, ,,
January 2012 ,, 7.40 7.30 7.90 11.90 ,, ,, ,,
February ,, 7.60 7.30 8.00 11.90 ,, ,, ,,
March ,, 7.70 7.40 8.00 12.00 ,, ,, ,,
April ,, 7.60 7.50 8.20 12.10 ,, ,, ,,
May ,, 7.60 7.60 8.40 11.90 ,, ,, ,,
June ,, 7.70 7.60 8.40 11.90 ,, ,, ,,
Source: Central Bank of Egypt and the Egyptian National Post Authority.
* As of June 2010, maturities have been changed and the data on interest rates (on deposits and loans) have been compiled according to
the Domestic Money Monitoring System (DMMS).
** An extra interest rate of 0.25 percent were calculated on more than one year deposits until June 2008,but as of the beginning of July 2008
this privilage was cancelled.
(2/5/1) Discount and Interest Rates on Deposits and Loans
End of Discount Rate
- 151 -
(% Annually)
Interest rate on Post Office
Saving Deposits **
Average Interest Rate in Banks * Interest Rate on Investment Certificates
in Egyptian Pound
US Dollar Sterling Pound Euro
Min. Max. Min. Max. Min. Max.
January 2010 0.11 0.24 0.15 0.43 0.18 0.49February 0.11 0.25 0.16 0.45 0.18 0.48March 0.13 0.28 0.16 0.45 0.17 0.47April 0.15 0.32 0.17 0.46 0.18 0.47May 0.24 0.53 0.18 0.5 0.19 0.51June 0.24 0.53 0.18 0.51 0.2 0.53July 0.21 0.47 0.19 0.52 0.25 0.66August 0.14 0.30 0.18 0.50 0.25 0.66September 0.13 0.28 0.18 0.51 0.25 0.66October 0.13 0.28 0.18 0.52 0.29 0.78November 0.13 0.28 0.18 0.52 0.29 0.78December 0.14 0.30 0.19 0.53 0.28 0.75
January 2011 0.14 0.30 0.19 0.54 0.30 0.79February 0.14 0.31 0.20 0.56 0.31 0.83March 0.14 0.30 0.20 0.57 0.35 0.93April 0.12 0.27 0.20 0.57 0.40 1.06May 0.11 0.25 0.21 0.58 0.41 1.11June 0.11 0.24 0.21 0.58 0.44 1.18July 0.11 0.25 0.21 0.58 0.47 1.25August 0.14 0.31 0.22 0.61 0.44 1.18September 0.16 0.36 0.24 0.66 0.45 1.19October 0.19 0.41 0.25 0.69 0.46 1.22November 0.23 0.49 0.26 0.72 0.42 1.13December 0.26 0.56 0.27 0.75 0.40 1.07
January 2012 0.25 0.55 0.27 0.76 0.33 0.88February 0.22 0.48 0.27 0.75 0.29 0.76March 0.21 0.46 0.26 0.72 0.21 0.56April 0.21 0.46 0.25 0.71 0.20 0.52May 0.21 0.46 0.25 0.70 0.18 0.48June 0.21 0.45 0.23 0.63 0.17 0.45
Source: National Bank of Egypt.
End of
- 152 -
(2/5/2) Domestic Interest Rates on 3-Month Depositsin Major Currencies
( % Annually )
91 days 182 days 266 days 273 days 357 days 364 days
April 2012
First week (3/4) 14.008 14.829 0.000 15.642 0.000 15.709Second week (10/4) 0.000 14.856 0.000 15.622 15.729 0.000Third week (17/4) 13.905 14.791 15.529 0.000 0.000 15.577Fourth week (24/4) 13.938 14.824 0.000 15.530 15.554 0.000Monthly Average 13.950 14.825 15.529 15.598 15.642 15.643May 2012First week (1/5) 0.000 14.895 15.616 0.000 0.000 15.602
Second week (8/5) 14.161 15.007 0.000 15.772 15.748 0.000Third week (15/5) 14.314 15.087 0.000 15.828 0.000 15.850Fourth week (22/5) 0.000 15.194 15.863 0.000 15.882 0.000 (29/5) 14.388 15.296 0.000 15.825 0.000 15.899
Monthly Average 14.288 15.096 15.740 15.808 15.815 15.784June 2012First week (5/6) 14.450 15.295 15.825 0.000 15.890 0.000Second week (12/6) 0.000 15.316 0.000 15.859 0.000 15.915Third week (19/6) 14.753 15.359 15.905 0.000 15.928 0.000Fourth week (26/6) 0.000 15.492 0.000 15.967 0.000 15.965
Monthly Average 14.602 15.366 15.865 15.913 15.909 15.940
Source: Central Bank of Egypt.
(2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages)
- 153 -
End of June 2006 2007 2008 2009 2010 2011+ 2012+
Number of Companies (in Unit) 656 544 377 333 215 211 212On the Official Schedules 141 147 121 119 115 0 0On the Unofficial Schedules 503 394 255 213 100 0 0On the Temporary Schedule* 12 3 1 1 0 0 0
Number of Shares (mn) 10457 14993 19859 22430 29002 32364 40019Nominal Value of Capital (LE mn) 109165 121072 137974 149587 134748 144699 150106
Market Value of Capital (LE mn) 377070 601826 813341 463644 410144 399756 339768
The Market of Medium and Small Enterprises (Nilex) **
Number of Companies (in Unit) 10 18 21
Number of Listed Shares (mn) 49 152 190
Total Value of Traded Shares (LE mn) 83 14 7
Market Value of Capital (LE mn) 407 1007 1093
The Egyptian Exchange Indices ***
EGX 20 Capped 5719.5 9286.2 10716.2 6590.8 6925.6 5888.1 5452.0
EGX 30 4772.8 7803.4 9827.3 5702.9 6033.1 5373.0 4708.6EGX 70 623.1 527.7 629.6 422.0
EGX 100 908.7 972.9 729.5
Source: Monthly Bulletin of Egyptian Exchange.
* Companies which have not adjusted their statuses according to the new listing rules.
** Trading in the Nilex Started on 3/6/2010.
*** The Egyptian Exchange CASE 30 Index was renamed EGX 30, while the EGX 70 index was introduced as of March 2009 to cover 70 companies
other than the 30 constituent companies of EGX 30. EGX 100 was also introduced, encompassing those companies constituting EGX 30 and
EGX 70, as of August 2009.EGX 20 Capped was also introduced in October 2011, which includes the most active 20 companies listed
+ The scheduling of the number of companies has been amended according to the EFSA's BOD decision no. 50 for 2009 regarding
the listing and de-listing rules of securities on the Egyptian Exchange. A time was given for companies to readjust their status.
on the Egyptian Exchange . The index was computed as of the 1st of February 2003.
(3/1) Companies Listed on the Egyptian Exchange
- 154 -
During FY
Number of Transactions
(Unit)
Amount(Thousand)
Market Value(mn)
Number of Transactions
(Unit)
Amount(Thousand)
Market Value(mn)
Shares in (Egyptian Pound) 7003133 22568747 146656 5259032 21712372 117273
Floor Transactions 6921524 20465398 132939 5206091 20632947 103130
Over the Counter Trading 81609 2103349 13717 52941 1079425 14143
Shares in Foreign Currencies
(US Dollar) 147376 599556 1423 128743 551996 683
Floor Transactions 145282 537349 830 127399 515887 460
Over the Counter Trading 2094 62207 593 1344 36109 223
(Euro) 9 265 36 12 1018 10
Floor Transactions 0 0 0 0 0 0
Over the Counter Trading 9 265 36 12 1018 10
(Sterling Pound) 0 0 0 1 132 0.1Floor Transactions 0 0 0 0 0 0Over the Counter Trading 0 0 0 1 132 0.1
(Swiss Franc) 0 0 0 2 6 0.2Floor Transactions 0 0 0 0 0 0Over the Counter Trading 0 0 0 2 6 0.2
-155 -(3/2) Trading in Shares on the Egyptian Exchange
2010/2011
Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.
2011/2012
During FY
Number of Transactions Amount Market Value Number of
Transactions Amount Market Value
(Thousand) (Thousand)
Bonds in (Egyptian Pound)_ 1558 45139785 45114731 933 33487141 31228854
Floor Transactions 1558 45139785 45114731 933 33487141 31228854
Over the Counter Trading 0 0 0 0 0 0
Bonds in (US Dollar) 0 0 0 0 0 0
Floor Transactions 0 0 0 0 0 0
Over the Counter Trading 0 0 0 0 0 0
Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.
(3/3) Trading in Bonds on the Egyptian Exchange
(Unit)
2010/2011 2011/2012
(Unit)
- 156 -
During FY
Egyptian Pound US Dollar Egyptian Pound US Dollar
Net Number of Transactions (unit) 57000 3731 -104562 -6323
Purchases 870112 32561 677076 21764
Sales 813112 28830 781638 28087
Net Volume of Securities (mn) 42 7 -416 -11
Purchases 3726 123 3640 107
Sales 3684 116 4056 118
Net Value of Securities (mn) 2070 -15 14453 -24
Purchasers 44104 217 45223 128
Sales 42034 232 30770 152
- 157 -
2010/2011
Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.
(3/4) Foreigners' Transactions on the Egyptian Exchange
2011/2012
Jun-11 Jun-12 Jun-11 Jun-12
Comercial International Bank/Egypt (CIB) July-96 Bank of New York CIB/HSBC 1.00 9999 5.06 4.27 29.76 25.96
Suez Cement July-96 Bank of New York CIB/HSBC 1.00 7310 7.50 7.50 39.25 21.00
Paints & Chemicals Industries (Pachin) Oct.-97 Bank of New York CIB/HSBC 3.00 6297 2.80 1.51 38.42 31.70
EFG-Hermes Aug.-98 Bank of New York HSBC/CIB 0.50 4324 6.84 3.30 20.10 10.15
Ezz Steel June-99 Bank of New York CIB/HSBC 0.33 573 32.50 32.00 10.61 6.99
Holding Company for Financial Investments (Lakah Group)* July-99 Bank of New York CIB/HSBC 0.33 35000 0.44 - - -
Orascom Telecom Holding (OT)** July-00 Bank of New York CIB/HSBC 0.20 11713 3.46 2.50 4.08 3.04
Orascom Construction Industries (OCI)*** Aug.-02 Bank of New York CIB/HSBC 1.00 50 45.95 40.50 269.64 248.57
Egypt Lebanon Ceramics (Lecico) Nov.-04 Bank of New York CIB/HSBC 1.00 8796 4.10 3.50 15.08 5.53
Telecom Egypt Dec.-05 Bank of New York CIB/HSBC 0.20 8522 12.69 10.80 14.93 13.30
Naeem Holding Feb-08 Bank of New York CIB/HSBC 0.25 5625 1.44 - 0.36 0.25
Palm Hills Development May-08 Bank of New York CIB/HSBC 0.20 5435 5.30 4.80 2.33 1.92
G B Auto May-09 Bank of New York CIB 0.20 100 25.52 - 30.46 20.84
Ramco for Touristic Villages Construction May-10 JP Morgan HSBC 0.20 1000 - - 3.35 2.01
Orascom Telecom Media and Technology Holding Jan-12 Bank of New York CIB / HSBC 0.20 807593 - - - 1.48
Source: Monthly Bulletin of Egyptian Stock Exchange.
* Last closing price was on 3 March 2005 as no trading has occurred after this date.
** The conversion ratio has changed to be 5 shares : 1 GDR, as of 12 April 2007.
*** The conversion ratio has changed to be 1 shares : 1 GDR, as of 7 May 2009.
Price (LE) at end of Conversion
Ratio
- 158 -
GDRs Listed on Global Exchanges Corporate Stocks
Issued on EgyptianExchange
Depository Bank Sub
CustodianBank
Volume on Offering
Date (000s)Company Date of
Offering
Price ($) at end of
(3/5) Global Depository Receipts (GDRs)
( LE mn )
End of 91 days 182 days 252 days 259 days 266 days 273 days 280 days 343 days 350 days 357 days 364 days 371 days Total
2006
March 6000 24100 - - - - - - - - 69016 - 99116
June 7100 26500 - - - - - - - - 69544 - 103144
Sept. 9900 27500 - - - - - - - - 69957 - 107357
Dec. 8200 27000 - - - - - - - - 71157 - 106357
2007
March 11000 26000 - - - - - - - - 73657 - 110657
June 9000 27500 - - - - - - - - 82157 - 118657
Sept. 8500 31500 - - - - - - - - 90657 - 130657
Dec. 12000 33000 - - - - - - - - 100957 - 145957
2008
March 10500 32500 - - - - - - - - 106457 - 149457
June 6800 33000 - - - - - - - - 106639 - 146439
Sept. 17000 42500 - - - - - - - - 105940 - 165440
Dec. 14500 48500 - - - 28000 - - - - 114940 - 205940
2009
March 9500 51500 - - - 55500 - - 6000 - 97940 - 220440
June 6021 43119 - 6000 - 77500 - - 15000 3000 88440 - 239080
Sept. 11000 28990 - 6000 - 88500 18000 15000 82890 - 250380
Dec. 8480 32767 - 6000 10025 79442 - - 18000 32419 64618 - 251751
2010
March 20000 47264 6000 - 16025 69442 - - 19000 39419 68118 - 285268
June 13000 46867 6000 3000 27025 45442 - - 15000 45169 64618 - 266121
Sept. 19000 45000 15000 3000 26000 39000 - - 21000 42169 58618 - 268787
Dec. 9975 54250 12000 3000 27500 42500 3500 - 31500 38250 59390 - 281865
2011
March 22500 71250 15000 7000 28500 39000 3500 - 31500 41750 56890 3500 320390
June 33000 78000 7325 16500 30250 41866 3500 2785 36840 43552 58985 3500 356103
Sept. 22000 78000 4325 23250 35250 36366 - 2785 40665 43202 60585 3500 349928
Dec. 26500 73850 1325 18250 40250 44312 - 2785 33435 47709 64085 3500 356001
2012
March 2707 86470 - 8750 48382 51899 - 2785 26435 56022 73608 - 357058
June 10000 84095 - 2000 48882 64899 - - 16095 62969 84458 - 373398
- 159 -
(3/6) Outstanding Balance of Treasury Bills (Quarterly)
Source : Central Bank of Egypt.
91 days 182 days 259 days 266 days 273 days 343 days 350 days 357 days 364 days Total
April 2012First week (3/4) 4708 85444 5250 44882 53899 2785 22935 52522 74608 347033Second week (10/4) 2000 85444 5250 44882 57399 2785 22935 56022 74608 351325Third week (17/4) 3000 81944 5250 48882 57399 2785 22935 56022 78608 356825Fourth week (24/4) 5000 81944 5250 48882 60899 0 20085 58147 77108 357315
End of Month 5000 81944 5250 48882 60899 0 20085 58147 77108 357315
May 2012
First week (1/5) 5000 82444 3750 47382 57899 0 20085 58147 80608 355315Second week (8/5) 6000 80945 3750 47382 59398 0 20085 60147 80608 358315Third week (15/5) 7000 79945 3750 47382 62398 0 20085 60147 82608 363315Fourth week (22/5) 7000 81095 2000 49382 58898 0 17195 60358 80333 356261
End of Month 8000 82095 2000 49382 61398 0 17195 60358 82833 363261
June 2012
First week (5/6) 9000 83595 2000 50882 61399 0 17195 62858 82832 369761
Second week (12/6) 9000 84595 2000 50882 64399 0 16095 60969 82513 370453Third week (19/6) 10000 84595 2000 48882 62399 0 16095 62969 82513 369453Fourth week (26/6) 10000 84095 2000 48882 64899 0 16095 62969 84458 373398
End of Month 10000 84095 2000 48882 64899 0 16095 62969 84458 373398
Source: Central Bank of Egypt.
- 160 -
(3/7) Outstanding Balance of Treasury Bills (Weekly)
Tranche Date of Value Interest Maturity &
Issue (LE bn) Rate% Due Date
Bonds under the Primary Dealers System **
Twelveth 16/11/2004 5.0 11.625 10 years 16/11/2014
Fourteenth 18/01/2005 1.0 11.400 20 years 18/01/2025
Eighteenth 20/09/2005 6.0 9.100 7 years 20/09/2012
Twenty First 15/11/2005 5.0 9.300 10 years 15/11/2015
Twenty Third 24/01/2006 6.0 8.850 7 years 24/01/2013
Twenty Seventh 29/05/2007 2.0 9.450 7 years 29/05/2014
Twenty Eighth 25/09/2007 2.0 8.450 7 years 25/09/2014
Twenty Ninth 23/10/2007 2.0 8.600 8 years 23/10/2015
Thirtieth 13/11/2007 5.0 8.550 6 years 13/11/2013
Thirty First 22/01/2008 3.0 8.700 8 years 22/01/2016
Thirty Second 12/02/2008 1.5 9.150 10 years 12/02/2018
Thirty Third 19/02/2008 3.0 9.200 6 years 19/02/2014
Thirty Fourth 27/05/2008 3.0 10.650 7 years 27/05/2015
Thirty Fifth 10/06/2008 2.0 10.950 8 years 10/06/2016
Thirty Seventh 10/02/2009 6.0 12.000 5 years 10/02/2014
Thirty Eighth 14/04/2009 5.0 10.550 5 years 14/04/2014
Fortieth 09/06/2009 6.0 11.000 7 years 09/06/2016
Fourty Second 09/06/2009 6.0 11.000 7 years 09/06/2016
Fourty Third 28/07/2009 6.0 10.800 4 years 28/07/2013
Fourty Fourth 11/08/2009 5.1 10.450 3 years 11/08/2012
Fourty Fifth 15/09/2009 6.0 10.900 5 years 15/09/2014
Fourty Sixth 29/09/2009 2.0 10.900 4 years 29/09/2013
Fourty Seventh 24/11/2009 6.5 12.170 4 years 24/11/2013
Fourty Eighth 08/12/2009 5.1 12.500 5 years 08/12/2014
Fourty Nineth 15/12/2009 8.0 12.800 6 years 15/12/2015
Fiftieth 05/01/2010 13.5 12.350 3 years 05/01/2013
Fifty First 16/02/2010 10.0 12.600 7 years 16/02/2017
Fifty Second 02/03/2010 9.5 12.250 5 years 02/03/2015
Fifty Third 06/04/2010 10.0 11.350 3 years 06/04/2013
Fifty Fourth 06/07/2010 7.5 11.550 3 years 06/07/2013
Fifty Fifth 20/07/2010 5.5 12.550 5 years 20/07/2015
Fifty Sixth 03/08/2010 11.5 13.000 10 years 03/08/2020
Fifty Seventh 05/10/2010 7.5 11.600 3 years 05/10/2013
Fifty Eighth 19/10/2010 3.0 12.350 5 years 14/09/2015
Fifty Nineth 18/01/2011 8.0 11.630 3 years 18/01/2014
Sixtieth 26/07/2011 10.0 13.100 2 years 26/07/2013Sixty First 02/08/2011 7.5 13.350 3 years 02/08/2014Sixty Second 18/10/2011 3.9 14.000 3 years 18/10/2014Sixty Third 25/10/2011 6.8 14.500 7 years 25/10/2018Sixty Fourth 25/10/2011 10.5 14.250 5 years 25/10/2016Sixty Fifth 17/01/2012 11.1 16.150 3 years 17/01/2015Sixty Sixth 17/01/2012 10.0 16.350 5 years 17/01/2017Sixty Seventh 03/04/2012 5.5 16.850 7 years 03/04/2019Sixty Eighth 03/04/2012 4.0 17.000 10 years 03/04/2022
Sixty Ninth 10/04/2012 7.0 16.550 5 years 10/04/2017
Total 270 5.
* According to Law No. (4) for 1995.
** This system was put into force as of July 2004, in virtue of the Minister of Finance's Decree No. 480 for 2002 and the provisions governing
it, issued by the Minister of Finance's Decree No. 723 for 2002, in accordance with the provisions of Article ( 7) of Law No. 92 for 2004.
(3/8) Outstanding Balance of Treasury Bonds*
End of June 2012
Duration
- 161 -
( LE mn )
The Budget Sector
The Budget Sector, NIB
& SIFs
The Budget Sector
The Budget Sector, NIB
& SIFs
Total Expenditures 351500 356944 365987 396768Compensation of Employees 76147 76968 85369 86377
Salaries and wages 62658 63412 70321 71247Social contributions 7210 7276 7850 7918Other 6279 6280 7198 7212
Purchases of Goods and Services 25072 25203 28059 28244Goods 11404 11418 11967 11986Services 9805 9859 11442 11560Other 3863 3926 4650 4698
Interests 52810 43755 72333 62277Foreign interests 3598 3598 2840 2840Domestic interests 49212 40157 69493 59437
To NIB 18615 0 19044 0To others 30597 40157 50449 59437
Subsidies, Grants and Social Benefits 127033 140262 102975 142360
Subsidies 93830 93830 93570 93570
To GASC 21072 21072 16819 16819To petroleum 62703 62703 66524 66524To others 10055 10055 10227 10227
Grants 4213 4213 4380 4380Social Benefits 28707 41936 4483 43868
Contribution to SIFs 26805 0 2400 0Other 1902 41936 2083 43868
Other 283 283 542 542Other Expenditures 27008 27276 28901 29047
Defense 22267 22267 23453 23453Other 4741 5009 5448 5594
Purchases of Non-Financial Assets(Investments) 43430 43480 48350 48463
Fixed assets 34654 34704 39205 39319Others 8776 8776 9145 9144
Source: The Ministry of Finance .
2008/2009 2009/2010
- 162 -
(4/1) Consolidated Fiscal Operations of the General Government ( The Budget Sector, NIB and SIFs )
(Total Expenditures)
( LE mn )
The Budget Sector
The Budget Sector, NIB
& SIFs
The Budget Sector
The Budget Sector, NIB
& SIFs
Total Expenditures 401866 440410 470992 516422Compensation of Employees 96271 97558 122818 124457
Salaries and wages 78270 79377 99926 101432Social contributions 9103 9191 11589 11706Other 8898 8990 11303 11319
Purchases of Goods and Services 26148 26645 26826 27079Goods 9979 9998 10599 10618Services 10716 10891 11516 11708Other 5453 5756 4711 4753
Interests 85077 76363 104441 93401Foreign interests 3416 3416 3418 3418Domestic interests 81661 72947 101023 89983
To NIB 19140 0 20398 0To others 62521 72947 80625 89983
Subsidies, Grants and Social Benefits 123125 168265 150193 204454Subsidies 111211 111211 134963 134963
To GASC 32743 32743 30282 30282To petroleum 67680 67680 95535 95535To others 10788 10788 9146 9146
Grants 5319 5319 5305 5305Social Benefits 6118 51258 9367 63628
Contribution to SIFs 3438 0 6200 0Other 2680 51258 3167 63628
Other 477 477 558 558Other Expenditures 31364 31554 30796 31072
Defense 26484 26484 26018 26018Other 4880 5070 4778 5054
Purchases of Non-Financial Assets(Investments) 39881 40025 35918 35959
Fixed assets 33303 33447 28997 29039Others 6578 6578 6921 6920
Source: The Ministry of Finance .
2010/2011 2011/2012
- 163 -
(4/1) Consolidated Fiscal Operations of the General Government (Contd.)( The Budget Sector, NIB and SIFs )
(Total Expenditures)
( LE mn )
The Budget Sector
The Budget Sector, NIB
& SIFs
The Budget Sector
The Budget Sector, NIB
& SIFs
Total Revenues 282505 288545 268114 303361Tax Revenues 163222 163222 170494 170494
Taxes on Income, Profits 79073 79073 76618 76618From EGPC 34135 34135 32181 32181From SCA 10391 10391 9443 9443From CBE 0 0 0 0From other units 20263 20263 18591 18591Payable by individuals 14284 14284 16403 16403
Taxes on Property 3944 3944 8770 8770Taxes on Goods and Services 62650 62650 67095 67095Taxes on International Trade (Customs) 14091 14091 14702 14702Other Taxes 3464 3464 3309 3309
Grants 7984 7984 4332 4332Current 6480 6480 2352 2352
Capital 1504 1504 1980 1980Other Revenues 111299 117339 93288 128535
Property Income 53395 60391 54570 61618From EGPC 21637 21637 25546 25546From SCA 13573 13573 12729 12729From CBE 0 0 205 205From economic authorities 1245 1245 1431 1431
From companies 3894 4194 3272 3272Other ( from EGPC ) 4355 4355 4527 4527Other 8691 15387 6860 13908
Sales of Goods and Services 16216 16216 17212 17212Financing Investment 7855 7855 8873 8873Other 33833 32877 12633 40832
Source: The Ministry of Finance .
2008/2009 2009/2010
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(4/2) Consolidated Fiscal Operations of the General Government ( The Budget Sector, NIB and SIFs )
(Total Revenues)
( LE mn )
The Budget Sector
The Budget Sector, NIB
& SIFs
The Budget Sector
The Budget Sector, NIB
& SIFs
Total Revenues 265286 302010 303622 348865Tax Revenues 192072 192072 207410 207410
Taxes on Income, Profits 89593 89593 91245 91245From EGPC 34308 34308 34075 34075From SCA 10900 10900 11800 11800From CBE 0 0 0 0From other units 25330 25330 23674 23674Payable by individuals 19055 19055 21696 21696
Taxes on Property 9452 9452 13089 13089Taxes on Goods and Services 76068 76068 84594 84594Taxes on International Trade (Customs) 13858 13858 14788 14788Other Taxes 3101 3101 3694 3694
Grants 2287 2287 10103 10103Current 252 252 8471 8471
Capital 2035 2035 1632 1632Other Revenues 70927 107651 86109 131352
Property Income 42504 50137 56996 67212From EGPC 21010 21010 15027 15027From SCA 15252 15252 16118 16118From CBE 498 498 15012 15012From economic authorities 1287 1287 2207 2207
From companies 3266 3266 3991 3991Other ( from EGPC) -2912 -2912 -534 -534Other 4103 11736 5175 15391
Sales of Goods and Services 17405 17405 17819 17819Financing Investment 8355 8355 6595 6595Other 2663 31754 4699 39726
Source: The Ministry of Finance .
2010/2011 2011/2012
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(4/2) Consolidated Fiscal Operations of the General Government (Contd.)( The Budget Sector, NIB and SIFs )
(Total Revenues)
( LE mn )
The Budget Sector
The Budget Sector, NIB
& SIFs
The Budget Sector
The Budget Sector, NIB
& SIFs
Total Revenues 282505 288545 268114 303361
Total Expenditures 351500 356944 365987 396768
Cash Deficit 68995 68399 97873 93407
Net Acquisition of Financial Assets 2831 3980 165 5479Overall Fiscal Balance 71826 72379 98038 98886
Financing Sources 71826 72379 98038 98886Domestic Financing 83627 79664 101492 102415
Banking Financing 98818 100140 40263 39380Central Bank -15285 -15285 11561 11561Other Banks 114103 115425 28702 27819
Non- Banking Financing -15191 -20476 61229 63035NIB 1449 0 3687 0SIFs 5417 0 5176 0Other -19930 -19930 53014 53014NIB Borrowing 0 1581 0 10669Special Accounts for Economic Authorities -2127 -2127 -648 -648
Blocked Account Used in Amortizing Part of CBE Bonds 0 0 0 0Foreign Borrowing 23343 23343 2458 2458Arrears -4 -4 0 0Others, of which : -601 3915 347 273
Special Accounts for Budget Entities 0 0 0 0
Financing Effects for Eliminations 0 0 0 -1Exchange Rate Revaluation 3366 3366 1328 1328Net Privatization Proceeds 183 183 425 425Difference between Treasury Bills Face Value & Present Value -10915 -10915 -227 -227Foreign Debt Reclassification Diff. and Related FX Diff. -25155 -25155 0 0Discrepancy -2018 -2018 -7785 -7785
Cash deficit (surplus) as a percentage of GDP 6.6% 6.6% 8.1% 7.7%
Overall fiscal balance as a percentage of GDP 6.9% 6.9% 8.1% 8.2% Revenues as a percentage of GDP 27.1% 27.7% 22.2% 25.1% Expenditures as a percentage of GDP 33.7% 34.2% 30.3% 32.9%Source: The Ministry of Finance .
2008/2009 2009/2010
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(4/3) Summary of the Consolidated Fiscal Operations of the General Government ( The Budget Sector, NIB and SIFs )
( LE mn )
The Budget Sector
The Budget Sector, NIB
& SIFs
The Budget Sector
The Budget Sector, NIB
& SIFs
Total Revenues 265286 302010 303622 348865
Total Expenditures 401866 440410 470992 516422
Cash Deficit 136580 138400 167370 167557
Net Acquisition of Financial Assets -2120 -4262 -665 -1868Overall Fiscal Balance 134460 134138 166705 165689
Financing Sources 134460 134138 166705 165689Domestic Financing 144295 135903 182411 184014
Banking Financing 109583 107238 146374 145320Central Bank 22115 22115 62574 62574Other Banks 87468 85123 83800 82746
Non- Banking Financing 34712 28665 36037 38694NIB 1861 0 -1666 0SIFs 10875 0 1498 0Other 21049 21049 37590 37590NIB Borrowing 0 6689 0 2489Special Accounts for Economic Authorities 927 927 -1385 -1385
Blocked Account Used in Amortizing Part of CBE Bonds 0 0 0 0Foreign Borrowing 5022 5022 -9062 -9062Arrears 0 0 0 0Others, of which : 3553 11623 622 -1997
Special Accounts for Budget Entities 0 0 0 0
Financing Effects for Eliminations 0 0 0 0Exchange Rate Revaluation 3922 3922 1533 1533Net Privatization Proceeds 22 22 0 0Difference between Treasury Bills Face Value & Present Value -7419 -7419 -11376 -11376Foreign Debt Reclassification Diff. and Related FX Diff. 0 0 0 0
Discrepancy -14935 -14935 2577 2577
Cash deficit (surplus) as a percentage of GDP 10.0% 10.1% 10.9% 10.9%
Overall fiscal balance as a percentage of GDP 9.8% 9.8% 10.8% 10.7% Revenues as a percentage of GDP 19.3% 22.0% 19.7% 22.6% Expenditures as a percentage of GDP 29.3% 32.1% 30.5% 33.5%Source: The Ministry of Finance .
2010/2011 2011/2012
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(4/3) Summary of the Consolidated Fiscal Operations of the General Government (Contd.)( The Budget Sector, NIB and SIFs )
( LE mn )
End of June 2007 2008 2009 2010 2011 2012
Gross Domestic Debt (1+2+3-4) 630966 658307 755297 888715 1044898 1238137
1- Net Domestic Debt of Government (A+B+C+D+E) 478173 478811 562327 663818 808113 990529
A- Balances of Bonds & Bills 562897 568960 681838 779232 916976 1078162 Treasury bonds with the CBE 165980 122378 121708 121533 130596 178830 Local currency bonds with public sector banks 4000 4000 4000 4000 4000 4000 Bonds offered abroad *:
US$ 3868 3750 4036 6005 7583 3834LE 0 112 3773 3808 3954 4279
Egyptian treasury bonds 57000 78500 92500 159767 206767 270567 Government notes to compensate for the actuarial deficit in social insurance funds 2000 2000 2000 2000 2000 2000 Housing bonds 119 117 116 114 115 111 Foreign currency bonds with public sector commercial banks 11886 11126 11677 11883 0 0 The equivalent of the retained 5% of corporate profits to purchase government bonds 1588 1636 1700 1764 1830 1905 Bonds of the Insurance Funds (against the transfer of NIB debt to the Treasury) 197799 198902 201248 202237 204028 204028 Treasury Bills
LE 118657 146439 239080 266121 356103 373398US$ 0 0 0 0 0 35210
B-Borrowing from other entities 0 0 0 0 2000 13036
C-Credit Facilities from the Social Insurance Funds 4517 2343 2343 2343 2343 1725
D-The Masri Dollar Certificate ** 0 0 0 0 0 193
E- Net Government Balances with the Banking System -89241 -92492 -121854 -117757 -113206 -102587
2- Borrowing of Economic Authorities (Net) 44557 50123 52255 67771 66290 63112
Net Balances of Economic Authorities with the Banking System -7177 -1156 2193 16302 14149 10457
Borrowing of Economic Authorities from NIB *** 51734 51279 50062 51469 52141 52655
3- NIB Debt (Net) 166201 189180 200754 222259 238179 251028NIB Debt 169152 193071 205560 227769 240851 253679
Deposits of the NIB with the banking system (-) 2951 3891 4806 5510 2672 2651
4- NIB Intradebt 57965 59807 60039 65133 67684 66532
Government debt to the NIB (investments in government securities) 6231 8528 9977 13664 15543 13877
Loans of economic authorities to NIB 51734 51279 50062 51469 52141 52655
Source: Central Bank of Egypt - Ministry of Finance - National Investment Bank.
* ( Holdings of resident financial institutions in Egypt represented in the banking system and the insurance sector ). ** In order to support the national economy and finance the development plan, the National Bank of Egypt issued a new US dollar certificate in May 2012 for Egyptians resident abroad to invest their savings in the Egyptian market. The Masri Dollar Certificate is a three-year certificate, with a 4% annual return, and is not redeemable in the first six months. Its minimum purchase value is US$ 1000, with no ceiling.
(4/4) Gross Domestic Debt
*** Apart from the interest payments due to the NIB.
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( LE mn )
End of June 2007 2008 2009 2010 2011 2012
Liabilities :of which 169152 193071 205560 227769 240851 253679
Social Insurance Fund for Gov. Employees 27428 29076 29638 31613 32982 34999
Social Insurance Fund for Pub. & Priv. Business Sectors Employees 20574 22632 24895 27384 29663 29765
Proceeds from investment certificates 68485 79232 81454 91134 94635 97904
Accumulated interest on investment certificates (category A) 7579 7509 8654 8648 8747 8005
Proceeds from US dollar development bonds 483 152 11 10 9 7
Post office savings 43518 49255 54487 64837 71978 78852
Others* 1085 5215 6421 4143 2837 4147
Assets :of which 169152 193071 205560 227769 240851 253679
Loans to economic authorities 51734 51279 50062 51469 52141 52655
Investments in government securities (bills and bonds) 6231 8528 9977 13664 15527 13877
Deposits of the NIB with the banking system 2951 3891 4806 5510 2672 2651
Lending for equity participations, concessional loans, and others (NIB debt minus its intradebt) 108236 129373 140715 157126 170511 184496
* Including deposits of the private insurance funds, saving certificates, and loans & deposits of various authorities.
(4/5) NIB Resources and Uses
- 169 -
(US$ mn)
Change
Value % Value % (-)
Balance of Current Account (6087.8) (7928.3) (1840.5)
Balance of Current Account (Excluding Transfers) (19224.6) (26336.3) (7111.7)
Receipts 48865.6 100.0 47848.1 100.0 (1017.5)
Export proceeds** 26992.5 55.2 26975.9 56.4 (16.6)
Transportation, of which 8069.1 16.5 8585.0 17.9 515.9
Suez Canal dues 5052.9 10.3 5207.8 10.9 154.9
Travel 10588.7 21.7 9419.0 19.7 (1169.7)
Investment income 418.8 0.9 246.1 0.5 (172.7)
Government receipts 117.7 0.2 276.2 0.6 158.5
Other receipts 2678.8 5.5 2345.9 4.9 (332.9)
Payments 68090.2 100.0 74184.4 100.0 6094.2
Import payments** 54095.5 79.5 58673.8 79.1 4578.3
Transportation 1385.3 2.0 1374.9 1.8 (10.4)
Travel 2112.6 3.1 2497.6 3.4 385.0
Investment income, of which 6468.3 9.5 6948.6 9.4 480.3
Interest paid 553.6 0.8 544.7 0.7 (8.9)
Government expenditures 1106.1 1.6 1151.9 1.5 45.8
Other payments 2922.4 4.3 3537.6 4.8 615.2
Transfers 13136.8 100.0 18408.0 100.0 5271.2
Private (net) 12383.9 94.3 17775.6 96.6 5391.7
Official (net) 752.9 5.7 632.4 3.4 (120.5)
* Preliminary figures.
** Including the exports & imports of free zones.
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(5/1) Balance of Payments
2010/2011 2011/2012*
FY
(US$ mn)
2010/2011 2011/2012*Value Value
Capital & Financial Account -4198.6 -1403.8
Capital Account -32.3 -96.0Financial Account -4166.3 -1307.8 Direct Investment Abroad -958.0 -249.2 Direct Investment in Egypt (Net) 2188.6 2078.2 Portfolio Investments Abroad -117.7 -148.7 Portfolio Investments in Egypt (Net), Of which : -2550.9 -5025.3 Bonds 211.0 79.6 Other Investments -2728.3 2037.2 Net Borrowing 1500.9 -101.5
Medium -and Long -Term Loans -828.7 -682.7
Drawings 1147.9 1290.0 Repayments -1976.6 -1972.7
Medium -Term Suppliers' and Buyers' Credit -63.1 18.4
Drawings 72.5 104.4 Repayments -135.6 -86.0
Short -Term Suppliers' and Buyers' Credit (Net) 2392.7 562.8 Other Assets -3427.1 1163.3 CBE -64.3 28.0
Banks -1608.8 4365.7
Other -1754.0 -3230.4
Other Liabilities -802.1 975.4
CBE -44.0 993.5 Banks -758.1 -18.1Net Errors & Omissions 532.5 -1946.3Overall Balance -9753.9 -11278.4Change in Reserve Assets, Increase (-) 9753.9 11278.4Source: CBE.
* Preliminary figures.
- 171 -
(5/1) Balance of Payments (Contd.)
FY
(US$ mn)
Value % Value % Total *** 26992.5 100.0 26975.9 100.0 (16.6)Fuels , Mineral Oils & Products 12605.1 46.7 13502.2 50.1 897.1
Crude oil 5662.0 21.0 7115.0 26.4 1453.0Petroleum products **** 6473.7 24.0 6014.0 22.3 (459.7)Coal & types thereof 63.9 0.2 39.3 0.1 (24.6)
Raw Materials 1414.8 5.2 1170.7 4.3 (244.1)Cotton 220.9 0.8 135.1 0.5 (85.8)Potatoes 42.7 0.2 53.5 0.2 10.8Edible fruits & nuts 171.3 0.6 119.3 0.4 (52.0)Oil seeds & oleaginous fruits, medicinal plants & plants for manufacturing 55.1 0.2 32.8 0.1 (22.3)
Spices&vanilla 6.4 0.0 5.2 0.0 (1.2)Medicinal plants 18.6 0.1 29.1 0.1 10.5Citrus fruits 30.7 0.1 65.6 0.2 34.9Raw hides & tanned leather 44.2 0.2 34.8 0.1 (9.4)Flax, raw 1.2 0.0 1.2 0.0 0.0Edible vegetables roots & tubers 233.9 0.9 183.5 0.7 (50.4)Dairy products, eggs and honey 151.8 0.6 175.8 0.7 24.0
Semi-finished Goods 2081.9 7.7 1943.4 7.2 (138.5)Carbon 113.6 0.4 186.0 0.7 72.4Essential oils & resins 40.1 0.1 40.6 0.2 0.5
- 172 -
Change(-)
(5/2) Exports by Degree of Processing *
Fiscal year2010/2011 2011/2012**
(US$ mn)
Value % Value % Cotton yarn 212.3 0.8 92.8 0.3 (119.5)Aluminium, unalloyed 73.9 0.3 88.6 0.3 14.7Animal & vegetable fats, greases & oils & products 114.4 0.4 123.7 0.5 9.3Synthetic fibers 70.3 0.3 30.0 0.1 (40.3)Organic & inorganic chemicals 585.9 2.2 564.8 2.1 (21.1)Cast iron & semi-finished products & rolled iron 454.2 1.7 383.4 1.4 (70.9)Leather, tanned 52.1 0.2 24.9 0.1 (27.2)Tanning or dyeing extracts 101.7 0.4 80.1 0.3 (21.6)Plastic & articles thereof 229.8 0.9 297.0 1.1 67.2Finished Goods 10850.2 40.2 10353.5 38.4 (496.7)Milk & condensed cream 17.1 0.1 19.5 0.1 2.4Dried onion 14.0 0.1 19.2 0.1 5.2Rice 25.9 0.1 31.0 0.1 5.1Vegetable & fruit preparations 48.3 0.2 66.4 0.2 18.1Miscellaneous edible preparations 349.4 1.3 416.9 1.5 67.5Manufactured tobacco and tobacco substitutes 75.9 0.3 99.1 0.4 23.2Sugar and its products 137.1 0.5 105.1 0.4 (32.0)Pharmaceuticals 458.1 1.7 366.4 1.4 (91.8)Fertilizers 1135.7 4.2 853.8 3.2 (281.9)Cement***** 152.0 0.6 148.4 0.6 (3.6)
- 173 -
(5/2) Exports by Degree of Processing * (Contd.)
Fiscal yearChange(-) 2010/2011 2011/2012**
(US$ mn)
Value % Value % Extracts of essential oils & resins 82.6 0.3 111.4 0.4 28.8Leather products 32.2 0.1 20.9 0.1 (11.3)Rubber & articles 47.2 0.2 97.5 0.4 50.3Paper, cardboard paper & articles thereof 302.1 1.1 262.5 1.0 (39.6)Ceramic products 240.5 0.9 183.1 0.7 (57.4)Cars, bicycles & tractors 203.3 0.8 140.3 0.5 (63.0)Cotton textiles 628.0 2.3 576.1 2.1 (51.9)Carpets & other floor coverings 198.4 0.7 170.2 0.6 (28.2)Shoes & accessories 3.8 0.0 0.6 0.0 (3.2)Ready-made clothes 771.2 2.9 739.1 2.7 (32.1)Glass & glassware 270.8 1.0 252.6 0.9 (18.2)Copper & articles 214.6 0.8 245.5 0.9 30.9Aluminium articles 328.0 1.2 309.8 1.1 (18.2)Articles of iron and steel 526.7 2.0 282.4 1.0 (244.3)Wood & articles thereof and charcoal 24.7 0.1 33.3 0.1 8.6Marble & granite 103.0 0.4 102.5 0.4 (0.5)Articles of base metals 277.4 1.0 203.8 0.8 (73.6)Optical appliances 88.8 0.3 61.9 0.2 (26.9)Soap & Detergents, fabricated candles 329.4 1.2 407.3 1.5 77.9
Miscellaneous Goods (Undistributed) 40.5 0.2 6.1 0.0 (34.4)Source: Central Bank of Egypt.* Commodities are classified according to the Harmonized System.** Provisional.*** Include exports of free zones. **** Include natural gas, and bunker & jet fuel.
and Decree No. 604 for 2009 Regarding the Continual Ban of Cement Export till Oct. , 1 , 2010.
- 174 -
***** Taking into consideration the Ministerial Decree No. 340 for 2009 Banning Cement Export from April,13,to Sept. ,1 , 2009;
(5/2) Exports by Degree of Processing * (Contd.)
Fiscal yearChange(-) 2010/2011 2011/2012**
(US$ mn)
Value % Value % Total *** 54095.5 100.0 58673.8 100.0 4578.3Fuels, Mineral Oils & Products 7553.3 14.0 9872.1 16.8 2318.8
Petroleum products **** 6928.0 12.8 9723.6 16.6 2795.6Coal & types thereof 185.7 0.3 51.9 0.1 (133.8)
Raw Materials 7778.9 14.4 8101.4 13.8 322.5Crude oil 2334.0 4.3 2050.9 20.8 (283.1)Wheat 2460.7 4.5 2273.7 3.9 (187.0)Maize 821.8 1.5 1422.2 2.4 600.4Tobacco 579.9 1.1 524.0 0.9 (55.9)Metal ores 135.2 0.2 119.1 0.2 (16.1)Iron, ore 480.7 0.9 790.1 1.3 309.4Seeds & oleaginous seeds 436.8 0.8 548.7 0.9 111.9Cotton 108.4 0.2 51.8 0.1 (56.6)
Intermediate Goods 15804.9 29.2 16894.6 28.8 1089.7Sugar, raw 291.3 0.5 802.2 1.4 510.9Animal and vegetable fats, greases & oils and products 1497.0 2.8 1810.5 3.1 313.5
Cement 422.2 0.8 91.8 0.2 (330.4)Organic & inorganic chemicals 1691.4 3.1 2045.7 3.5 354.3Fertilizers 285.0 0.5 293.0 0.5 8.0Tanning & dyeing extracts 290.2 0.5 233.8 0.4 (56.4)Essential oils & resinoids 96.0 0.2 48.4 0.1 (47.6)Plastic & articles thereof 1252.4 2.3 1389.5 2.4 137.1
(5/3) Imports by Degree of Use * - 175 -
Fiscal yearChange(-) 2010/2011 2011/2012**
(US$ mn)
Value % Value % Wood & articles thereof 949.0 1.8 1089.3 1.9 140.3Paper, cardboard paper & articles thereof 1029.7 1.9 1075.8 1.8 46.1Cotton textiles 177.5 0.3 151.3 0.3 (26.2)Synthetic fibers 604.2 1.1 717.1 1.2 112.9Ceramic products 302.3 0.6 289.0 0.5 (13.3)Glass & articles 115.6 0.2 135.1 0.2 19.5Iron & steel products 2857.5 5.3 2840.0 4.8 (17.5)Copper & articles 432.9 0.8 537.7 0.9 104.8Rubber & articles 421.0 0.8 570.9 1.0 149.9Aluminium & articles 324.0 0.6 226.7 0.4 (97.3)Articles of base metals 533.3 1.0 591.2 1.0 57.9Parts & accessories of motor vehicles 1961.8 3.6 1592.5 2.7 (369.3)
Investment Goods 10419.8 19.3 9649.9 16.4 (769.9)Pumps, fans & parts thereof 605.4 1.1 658.9 1.1 53.5Machines and apparatus for ginning and spinning & parts thereof 110.9 0.2 79.7 0.1 (31.2)
Computers 807.4 1.5 783.8 1.3 (23.6)Motors, generators, transformers & parts thereof 964.6 1.8 1027.2 1.8 62.6Parts of railway and tramway locomotives or rolling stock equipment 251.5 0.5 170.3 0.3 (81.2)
Tractors 26.1 0.0 49.3 0.1 23.2Vehicles for transport of passengers 40.0 0.1 16.3 0.0 (23.7)Vehicles for transport of goods 40.4 0.1 32.6 0.1 (7.8)
(5/3) Imports by Degree of Use* (Contd.)
- 176 -
Fiscal yearChange(-) 2010/2011 2011/2012**
(US$ mn)
Value % Value % Tools, implements, cuttery & spoons 292.4 0.5 271.2 0.5 (21.2)Air conditioners 286.2 0.5 226.0 0.4 (60.2)Cranes and bulldozers & parts thereof 1677.8 3.1 1250.8 2.1 (427.0)Agricultural machinery 155.5 0.3 89.7 0.2 (65.8)Printing machinery & parts 72.8 0.1 101.4 0.2 28.6Electric appliances for telephones & telegraph 743.4 1.4 1051.5 1.8 308.1Optical appliances 490.8 0.9 560.7 1.0 69.9
Consumer Goods 12273.8 22.7 13661.0 23.2 1387.2A - Durable Goods 2865.1 5.3 2990.3 5.1 125.2
Household refrigerators & electric freezers 192.5 0.4 178.0 0.3 (14.5)Televisions & parts thereof 288.4 0.5 405.3 0.7 116.9Vehicles for transport of persons 886.7 1.6 736.7 1.3 (150.0)Household electric-motor appliances 622.6 1.2 712.2 1.2 89.6
B - Non-durable Goods 9408.7 17.4 10670.7 18.2 1262.0Meat and edible offals 999.1 1.8 865.2 1.5 (133.9)Fish, crustaceans, molluscs and others 302.1 0.6 339.3 0.6 37.2Dairy products, eggs, poultry and honey 473.2 0.9 629.7 1.1 156.5Edible vegetables roots & tubers 628.3 1.2 642.4 1.1 14.1Tea 152.7 0.3 180.1 0.3 27.4
(5/3) Imports by Degree of Use* (Contd.)
- 177 -
Fiscal yearChange(-) 2010/2011 2011/2012**
(US$ mn)
Value % Value %Miscellaneous edible preparations 833.1 1.5 933.6 1.6 100.5Pharmaceuticals 1889.2 3.5 2289.2 3.9 400.0Insecticides 31.3 0.1 21.6 0.0 (9.7)Residues of foodstuff industries & animal fodder 389.5 0.7 423.7 0.7 34.2Live animals 103.7 0.2 117.6 0.2 13.9Ready-made clothes 789.3 1.5 994.0 1.7 204.7Cotton textiles 543.8 1.0 735.5 1.3 191.7Sugar, refined and products 55.3 0.1 41.3 0.1 (14.0)Lentils 65.8 0.1 59.4 0.1 (6.4)Soap, detergents & artificial wax 193.2 0.4 329.3 0.6 136.1
Miscellaneous Goods (Undistributed) 264.8 0.5 494.8 0.8 230.0Source: Central Bank of Egypt.* Commodities are classified according to the Harmonized System.** Provisional.*** Including imports of free zones, and in-kind grants & loans.**** Including gas, and bunker & jet fuel.
- 178 -
(5/3) Imports by Degree of Use* (Contd.)
Fiscal yearChange(-) 2010/2011 2011/2012**
(US$ mn)
2010/2011 2011/2012** 2010/2011 2011/2012** 2010/2011 2011/2012**Total *** 26992.5 26975.9 54095.5 58673.8 (27103.0) (31697.9)
European Union 11437.0 10975.0 18707.1 19282.4 (7270.1) (8307.4)Other European countries 1704.8 1418.7 4698.7 6099.9 (2993.9) (4681.2)Russian Federation & C.I.S 191.6 107.4 1073.6 2578.3 (882.0) (2470.9)United States of America 3600.3 3431.1 5812.2 4814.8 (2211.9) (1383.7)Arab countries 4864.7 5324.3 8679.5 10181.8 (3814.8) (4857.5)Asian countries (Non Arab) 4026.1 4620.4 10964.5 11675.9 (6938.4) (7055.5)African countries (Non Arab) 542.9 499.1 625.1 505.0 (82.2) (5.9)Australia 14.9 22.2 352.1 427.3 (337.2) (405.1)Other countries & regions 610.2 577.7 3182.7 3108.4 (2572.5) (2530.7)Source: Central Bank of Egypt* Including in-kind grants and loans.** Provisional.*** Including exports & imports of free zones.
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(5/4) Regional Distribution of Exports and Imports
Fiscal yearProceeds of Exports Payments for Imports* Trade Balance
End of
First: Interbank Rates US$
Minimum
Maximum
Weighted average
Second: Market Rates Buy Sell Buy Sell
US Dollar 595.58 598.49 604.55 607.48
Euro 861.15 865.41 751.52 755.22
Pound Sterling 953.70 958.54 939.71 944.39
Swiss Franc 713.18 716.84 625.57 628.93
100 Japanese Yen 740.58 744.57 761.11 765.09
Saudi Riyal 158.81 159.60 161.20 161.99
Kuwaiti Dinar 2161.81 2176.32 2151.19 2165.48
UAE Dirham 162.12 162.96 164.57 165.41
Chinese Yuan 92.14 92.59 95.09 95.56Source : Central Bank of Egypt
The interbank Rates started on 23/12/2004
(In piasters per foreign currency unit)
(5/5) Average LE Exchange Rates
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597.10
596.90
June 2011 June 2012
596.70 605.80
606.20
605.90
(US$ mn)
2012 +201120102009200820072006End of June
34384.534905.733694.231531.133892.829898.029592.6Total External Debt*
10983.312860.612599.314081.415606.414846.515229.0Rescheduled bilateral debt **6654.67271.67054.67448.07787.87396.57610.6 ODA4328.75589.05544.76633.47818.67450.07618.4 Non-ODA5074.25214.54692.44824.24972.14346.04295.5Other bilateral debt3960.74211.33774.73978.34130.43630.13590.4 Paris Club countries1113.51003.2917.7845.9841.7715.9705.1 Other countries11068.110808.69977.58168.87361.56815.25205.0International & regional institutions405.0426.0313.5323.6763.5791.6979.5Suppliers' & buyers' credits
2900.72821.03079.51926.12651.81570.31861.9Eُgyptian bonds & notes1000.00.00.00.00.00.0300.0Long - Term deposits51.317.577.283.018.278.988.7Private sector debt (non-guaranteed)
2901.92757.52954.82124.02519.31449.51633.0Short-term debt913.7972.71359.51156.11048.3536.0633.1 Deposits
1988.21784.81595.3967.91471.0913.5999.9 Other short-term facilitiesSource: Loans and External Debt Department - CBE+ Provisional* The difference from World Bank Data is in short-term debt .** According to the agreement signed with paris club countries on 25/5/1991
(5/6) External Debt Structure
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(%)
2011/2012+2010/20112009/2010 2008/20092007/20082006/20072005/2006FY
71.971.471.064.459.970.482.4External Debt / Exports (G & S)
2904.62799.22617.53119.82595.92936.43040.7Debt Service (Principal & Interest) (US$ mn.) *
6.15.75.56.44.66.98.5Debt Service / Exports (G & S)
4.44.54.55.53.95.97.3Debt Service / Current Receipts (including transfers)
1.41.31.41.51.41.51.6Interest / Exports (G & S)
13.515.215.916.920.122.827.6External Debt /GDP
8.47.98.86.87.44.85.5Short-term Debt / Total External Debt
18.710.48.46.87.35.17.1Short-term Debt / Net International Reserves
389.7413.6399.2418.6450.0398.5401.7External Debt per capita (US$)
+ Provisional
* includes interest payments on US dollar-denominated bonds and notes holding by non-residents
(5/7) External Debt Indicators
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(US$ mn)ChangeEnd of
(-)%Value%Value(521.2)100.034384.5100.034905.7Total1286.943.715018.839.413731.9US dollar **(20.7)0.3124.40.4145.1Canadian dollar(24.1)0.393.40.3117.5Australian dollar(127.8)1.4490.91.8618.7Swiss franc(35.6)0.5167.70.6203.3Sterling pound(100.3)12.74380.112.84480.4Japanese yen(25.1)0.396.60.3121.7Danish krone(0.8)0.04.20.05.0Norwegian krone(6.0)0.122.10.128.1Swedish krona
111.36.52222.96.12111.6Kuwaiti dinar28.00.271.60.143.6Saudi riyal(8.8)0.121.60.130.4UAE dirham
(1680.4)24.48383.628.810064.0Euro(43.2)1.6562.51.7605.7Egyptain Pound125.47.92724.17.52598.7SDRs
Source: Loans & External Debt Department- CBE* Provisional.** Including other liabilities due in US dollar.
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June 2012*June 2011
(5/8) Distribution of External Debt by Main Currencies
Periodical Publications of the Central Bank of Egypt
PeriodicityLanguageName of Publication Monthly Arabic and English 1 -Monthly Statistical Bulletin Quarterly Arabic and English2 -Economic Review Every fiscal year Arabic and English3 -Annual Report Quarterly English 4 -External Position of the
Egyptian Economy
Note: - All publications of the Central Bank of Egypt are available on the CBE's
website: www.cbe.org.eg
