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TRANSCRIPT
CENTRAL BANK OF EGYPT
ECONOMIC REVIEW
Vol. 53 No. 3
2012/2013
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. An electronic version is available on CBE website: www.cbe.org.eg.
Contents
Page Main Economic Indicators
1- Macroeconomic Developments 1/1- Gross Domestic Product (GDP) ………………………………………… 1 1/2- Labor Force, Employment and Unemployment …………………………. 10 1/3- Inflation ………………………………………………………................... 11 1/4- Tourism ……………………………………………………………........... 16 2- Monetary and Banking Developments 2/1- Monetary and Banking Policy and Monetary Aggregates………………. 19 2/1/1- Monetary Policy…………………………………………………………. 19 2/1/2- Reserve Money (M0) …………………………………………………… 22 2/1/3- Domestic Liquidity (M2) and Counterpart Assets ……………................ 26 2/1/4- Payment Systems and Information Technology (IT).………………….. 31 2/1/5- RTGS and SWIFT Local Services …………………………………….. 33 2/2- Banking and Credit Developments……….…......................................... 35 2/2/1- Banking Reform ………………………………………………………... 35 2/2/2- Supervision Sector ……………………………………........................... 38 2/2/3- Overview of the Aggregate Financial Position of Banks……………….. 43 2/2/4- Interbank Transactions ………………………........................................ 46 2/2/4/1- Transactions with Banks Abroad ………………………………………. 46 2/2/4/2- Interbank Transactions in Egypt …………………….............................. 46 2/2/5- Deposits ………………………………………………………………… 47 2/2/6- Lending Activity ………………………………...................................... 49 3- Non-Banking Financial Sector 3/1- Regulatory and Legislative Developments…………………………… 51 3/2- Stock Market………………………………………………………........ 52 3/3- Mutual Funds …………………………………….................................... 56 4- Public Finance and Domestic Public Debt 4/1- Consolidated Fiscal Operations of the General Government ……………. 57 4/1/1- Budget Sector ………………….................................................................. 57 4/1/2- Budget Sector, NIB and SIFs …………………………………………….. 60 4/2- Domestic Public Debt …...…………….................................................... 64 4/2/1- Debt of the Government (Net) …………….............................................. 64 4/2/2- Debt of Public Economic Authorities (Net) ………….............................. 67 4/2/3- Debt of the NIB (Net) ………………....................................................... 68 4/2/4- Intra-Debt ………………………….......................................................... 68
5- External Transactions
69 Foreign Exchange Market and NIRs……………….................................. 5/1- 71 Balance of Payments……………………................................................... 5/2- 72 Current Account …………………………................................................. 5/2/1- 72 Trade Balance ……………………............................................................ 5/2/1/1- 73 Balance of Services and Income, and Net Transfers…………………...... 5/2/1/2- 77 Capital and Financial Account……………................................................ 5/2/2- 80 External Trade……………….................................................................... 5/3- 80 Structure of Export Proceeds and Import Payments……........................... 5/3/1- 83 Sectoral Distribution of Merchandise Transactions………....................... 5/3/2-
85 Geographical Distribution of Merchandise Transactions………………… 5/3/3- 87 Breakdown of Trade by Main Commodity………..................................... 5/3/4-
88 International Finance …………………….................................................. 5/4 - 90 Foreign Direct Investment (FDI) in Egypt ……………….……………… 5/4/1-
93 External Official Grants ………………………......................................... 5/4/2- 95 External Debt………………….................................................................. 5/4/3-
Annex Statistical Section………………….…………………………………….................. 103
Main Economic Indicators
July/March GDP (LE bn)
2011/12 2012/13 GDP at Current Market Prices 1175.2 1307.0 Real GDP at Factor Cost 1127.3 1152.8 Annual Growth Rate (%) 1.9 2.3
Real GDP Growth Rate (at Factor
Cost) by Sector (%) A) Productive Sectors of which:
Construction and Building 2.0 6.6 Electricity 5.8 5.3 Water 5.1 4.3 Agriculture, Irrigation and Fishing 3.0 3.1 Manufacturing (oil refining and other) -0.4 2.5
B) Services Sectors of which: Tourism -1.0 10.2
Communications 5.4 5.4 Real Estate 3.2 4.2 Social Insurance 2.6 3.1 Wholesale and Retail Trade 1.6 2.8
Price Index (%) 2011/12 2012/13 - Change in consumer price index (urban) (January 2010 = 100) 7.1 7.4 - Change in producer price index (2004/2005 =100) 4.0 4.8
July/March 2011/12 2012/13- Monetary and Credit Developments
End of Period Growth rate of domestic liquidity (M2) (%) 4.5 13.0 Growth rate of time and saving deposits in local currency (%) 4.5 8.9 Growth rate of deposits in foreign currencies (%) 4.0 18.2 Foreign currency deposits/Total deposits (dollarization rate) (%) 21.1 21.6 Credit to the private business sector/Total credit (%) 32.0 28.2 Net claims on the government/Total credit (%) 53.4 58.7 Credit to the household sector/Total credit (%) 10.6 9.7 Credit to the public business sector/Total credit (%) 4.0 3.4 Change in credit to the private business sector/Change in total credit (%) 5.9 9.6 Change in net claims on the government/Change in total credit (%) 81.3 83.1 Change in credit to the household sector/Change in total credit (%) 7.1 5.6 Change in credit to the public business sector/Change in total credit (%) 5.7 1.7 Loans/Deposits with banks (%) 49.8 46.9 Investment in securities, TBs and equity participations/Deposits (%) 52.5 55.0 Net international reserves (US$ mn) at end of period 15119 13424 Number of months of merchandise imports covered by NIR 3.1 2.8
July/March
2011/12 2012/13 Annual Discount and Interest Rates (%)
End of Period CBE Lending and Discount Rate 9.50 10.25 Interest Rate on CBE Main Operations (Repos) 9.75 10.25 Overnight Deposit and Lending Rates at the CBE
Deposit 9.25 9.75 Lending 10.25 10.75
Deposits of More than One Month up to Three Months 7.70 7.80 Loans up to One Year 12.00 12.30
US Dollar Exchange Rate Announced by the CBE
(PT/Dollar)
Buy and Sell Exchange Rates (Average of the Period) 607.2 679.3 End of the Period (Buy Rate) 605.6 679.5
2012/13 Estimates
FY Actual
(July/March)
Consolidated Fiscal Operations of The General Government (Budget Sector)
LE bn -Total Revenues 395.5 208.2 -Total Expenditures 586.1 382.5 -Cash Deficit/Surplus 190.6 174.3 -Net Acquisition of Financial Assets -5.3 1.6
Overall Deficit (Surplus) 185.3 175.9
Total Finance 185.3 175.9 -Domestic Finance 0.0 220.8
Banking 0.0 172.7 Non-Banking 0.0 48.1
-Foreign Borrowing 0.0 -2.3 -Arrears 0.0 - -Other 0.0 -11.3 -Revaluation Differences 0.0 8.8 -Net Privatization Proceeds - - -Difference between TBs Face and Present Value 0.0 -4.9 -Discrepancy 0.0 -35.2 -Cash Deficit (Surplus) /GDP (%) 10.8 10.0 -Overall Fiscal Balance/GDP (%) 10.5 10.1 -Expenditures /GDP (%) 33.3 22.0 -Revenues /GDP (%) 22.5 12.0
End of
June 2012 March 2013 Domestic Public Debt
LE bn Gross, of which: 1238.1 1460.4 -Government Debt (Net) 990.5 1211.2 -Public Economic Authorities Debt (Net) 63.1 63.7 -NIB Debt (Net) Minus Intra-Debt 184.5 185.5
______________________ 00 Not-available.
July/March Balance of Payments (US$ bn)
2011/12 2012/13 Current Account and Transfers -7.1 -3.9 Trade Balance -24.5 -23.8 Merchandise Exports 19.1 19.8
Oil and its Products % 46.3 47.7 Other % 53.7 52.3
Merchandise Imports -43.6 -43.6 Intermediate Goods % 28.9 27.5 Consumer Goods % 23.7 22.3 Fuel, Raw Materials and Others % 30.5 33.1 Investment Goods % 16.9 17.1
Services Balance 4.1 5.5 Receipts, of which: 15.6 17.3
Transportation % 41.3 38.8 Travel % 45.4 46.8 Investment Income % 1.1 0.8
Payments, of which: 11.5 11.8 Transportation % 8.3 10.7 Travel % 16.6 17.9 Investment Income % 43.8 38.7
Net Transfers 13.3 14.4 Official % 4.3 4.4 Private % 95.7 95.6
Capital and Financial Account -2.7 4.3 Overall Surplus/(Deficit) -11.2 -2.1 Outstanding External Debt (at End of March) 33.4 38.4
- 1 -
1- Macroeconomic Developments 1/1- Gross Domestic Product (GDP)
According to the data of the Ministry of Planning, real GDP grew roughly by 2.3 percent at both factor cost and market prices during July/March 2012/2013, against 1.9 percent at factor cost, and 1.8 percent at market prices a year earlier. On a quarterly basis, data showed that real GDP growth reached 2.2 percent in Q3 (January/March 2013) against 2.0 percent in Q2 (October/Dec.) and 5.2 percent in Q3 of 2011/2012.
GDP at Constant Prices∗
Value (in LE bn) Growth Rate (%)
July/March Oct./ Dec.
Jan./ March July/March Oct./
Dec. Jan./
March
2011/12 2012/13 2012/13 2011/12 2012/13 2012/13
GDP at factor cost 1127.4 1152.8 371.3 385.7 1.9 2.3 2.0 2.2
Indirect taxes (net) 47.8 49.5 16.4 16.5 1.1 3.6 6.5 1.2
GDP at market prices 1175.2 1202.3 387.7 402.2 1.8 2.3 2.2 2.2 Source: Ministry of Planning. * The base year is 2011/2012.
Real GDP Growth Developments
(At Factor Cost)
4.7 5.1
1.90.3 0.3 0.4
3.32.5 2.0 2.2
-3.8
5.7
2.2
5.5 2.5
-6.0-4.0-2.00.0
2.04.06.0
2008
/200
9
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
July
/Sep
t.
Oct
./Dec
.
Jan.
/Mar
.
2010/2011 2011/2012 2012/2013
(%)
Real Growth Rates (Annual Basis)
2.5
5.3
2.9
5.43.4 2.8 2.5
4.2
-4.2
3.1
-2.5
4.1 2.9 3.1
10.2
2.84.3
2.8
6.6
-6-4-202468
1012
Agr
icul
ture
, Irr
igat
ion
& F
ishi
ng
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 &
Sto
rage
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
%July/Mar. 2012/2013 (2.3%)July/Mar. 2011/2012 (1.9%)
- 2 - - GDP (at Factor Cost and 2011/2012 Prices)
On the supply side, the increase in real GDP growth (2.26 percent) was
contributed largely by the domestic demand-driven sectors (2.47 percentage points) with a relative weight of 109.3 percent. The key contributors to growth were agriculture, irrigation and fishing (0.46 percentage point); manufacturing (0.40 point); wholesale and retail trade and tourism (0.32 point each); and construction and building (0.28 point).
On the other hand, the external demand-driven sectors added a negative 0.2 percentage point to real GDP growth. This was ascribed to the negative contribution of extractions and Suez Canal (0.44 point and 0.09 point, in order), and the positive contribution of tourism (0.32 point).
- 3 -
Real Growth of Economic Activity Sectors and their Share in Real GDP Growth
(At Factor Cost)
∗ Including the sectors of water, sanitation, information, and insurance
On the quarterly level, the relative increase in GDP growth in Q3 of FY 2012/2013 (2.25 percent) as compared with Q2 figure (2.0 percent) reflected the better performance of some sectors. In the forefront of these sectors came tourism with a growth rate of 17.8 percent (against 12.8 percent); followed by construction and building (11.1 percent against 3.8 percent); communications (7.5 percent against 3.8 percent); and real estate (5.2 percent against 3.0 percent). However, this relative increase was held back by the slackened growth of electricity (2.4 percent against 7.0 percent) and the poor negative growth of other sectors, such as extractions (-5.9 percent against -1.4 percent); and Suez Canal (-5.4 percent against -3.9 percent).
Sector Share in Real GDP Growth (Percentage Point)
Growth Rate (%)
2012/2013 2012/2013 Sector
July/March Oct./Dec. Jan./March July/March Oct./Dec. Jan./March Domestic Demand- Driven Sectors Agriculture, irrigation and fishing 0.46 0.37 0.47 3.1 2.8 3.4 Manufacturing 0.40 0.31 0.46 2.5 2.0 2.9 Electricity 0.07 0.08 0.03 5.3 7.0 2.4 Construction and building 0.28 0.18 0.46 6.6 3.8 11.1 Transportation and storage 0.11 0.08 0.11 2.9 2.2 3.1 Communications 0.13 0.10 0.19 5.4 3.8 7.5 Wholesale and retail trade 0.32 0.22 0.32 2.8 1.6 3.2 Finance 0.09 0.04 0.12 2.5 1.1 3.2 Social insurance 0.10 0.10 0.10 3.1 3.1 3.0 Real estate 0.10 0.07 0.13 4.2 3.0 5.2 General government 0.28 0.26 0.32 2.8 2.8 3.0 Social services 0.11 0.07 0.15 2.8 1.9 4.0 Other sectors* 0.03 0.02 0.01 3.6 2.70 4.0 Total 2.47 1.90 2.91 External Demand-Driven Sectors Extractions (0.44) (0.24) (1.09) (2.5) (1.4) (5.9) Suez Canal (0.09) (0.08) (0.11) (4.2) (3.9) (5.4) Tourism 0.32 0.42 0.53 10.2 12.8 17.8 Total -0.21 0.10 -0.66 Grand Total 2.26 1.99 2.25 2.3 2.00 2.2
- 4 - As for the shares of public and private sectors in real GDP (2.26
percent) during July/March 2012/2013, the growth was mostly contributed by the private sector (2.03 points), mainly the sectors of agriculture, irrigation and fishing (0.46 point); manufacturing (0.33 point); and wholesale and retail trade (0.31 point).
The public sector added only 0.23 percentage point. The major contributors were the sectors of the general government (0.28 point); social insurance (0.10 point); and electricity (0.07 point). On the other hand, the shares of extractions and Suez Canal were both negative (0.34 point and 0.09 point, respectively).
Sectoral contribution to real GDP growth in Q3 illustrated that the private
sector remained the key driver (2.4 percentage points). The major contributors in terms of the relative importance were tourism; agriculture, irrigation & fishing; and construction and building.
Contribution of the Private Sector to Real GDP Growth(at Factor Cost)
0.46-0.10
0.330.26
0.090.12
0.310.03
0.320.100.11
-0.20 -0.10 0.00 0.10 0.20 0.30 0.40 0.50
Agriculture, Irrigation & FishingExtractions
ManufacturingConstruction & BuildingTransportation & Storage
CommunicationsWholesale & Retail Trade
FinanceTourism
Real EstateSocial Services
July/Mar. 2012/2013 (2.03 percentage points)
Contribution of the Public Sector to Real GDP Growth(at Factor Cost)
-0.340.060.07
0.010.020.02
0.01-0.09
0.010.06
0.010.10
0.28
-0.40 -0.30 -0.20 -0.10 0.00 0.10 0.20 0.30 0.40
Extractions Manufacturing
ElectricityWater
Construction & BuildingTransportation & Storage
CommunicationsSuez Canal
Wholesale & Retail TradeFinance
InsuranceSocial Insurance
General Government
July/Mar. 2012/2013 (0.23 percentage point)
- 5 - - GDP and Sectoral Analysis of Output Gap
The output gap∗ showed a relative improvement in Q3 of 2012/2013, registering a negative 0.4 percent (against a negative 0.8 percent in the preceding quarter and a positive 2.4 in the same quarter a year earlier). Such an improvement reflects the rise of 2.3 percent in actual GDP in the period under review against 1.9 percent in the period of comparison, given that the potential GDP amounted to 2.7 percent in these two quarters.
This relative improvement during Q3 2012/2013 as compared with Q2 was mainly due to the better performance of key economic sectors, which led to positive gaps. The construction and building sector recorded a positive gap of 5.7 percent; followed by tourism (12.7 percent); financial activities (0.7 percent); and communications (0.4 percent). However, the rise in the business cycle during this quarter could have been larger but for the negative output gaps of electricity, extractions and Suez Canal sectors. ___________________ ∗ The trend component (which represents the potential GDP growth or GDP trend) was calculated by using the
quarterly data of both the GDP and a set of economic sectors during the period of Q1 2001/02 – Q3 2012/13, by applying the approach of Hodrick-Prescott Filter. Then, the cyclical component was derived, which reflects the output gap (the difference between the actual GDP growth rate and the potential GDP growth rate after excluding their seasonal effects).
Real Growth Rates of Actual GDP, Potential GDP and GDP Gap (annual basis)
-6.7
-0.4
-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
Q1
Q2
Q3
2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13
%
GDP Gap - Business CycleActual GDP Growth Rate - Seasonally AdjustedPotential GDP-Trend
- 6 -
Actual Real GDP Growth (Seasonally Adjusted) and the Output Gap of Main Economic Sectors
GDP Gap
(Economic Business Cycle) %
Actual Growth Rate
% Oct./Dec. Jan./March Oct./Dec. Jan./March
2012/2013 2012/2013 2012/2013 2012/2013 Real GDP Growth -0.8 -0.4 1.9 2.3 Communications -2.9 0.4 4.1 7.2 Construction and building -2.5 5.7 3.6 11.6 Electricity 2.0 -2.3 6.8 2.5 Extractions -1.7 -5.6 -1.5 -5.4 Finance -1.8 0.7 1.0 3.5 Government -0.5 -0.2 2.8 3.0 Tourism 9.0 12.7 11.9 15.6 Manufacturing 0.4 1.5 1.9 3.0 Real estate -0.6 1.7 2.9 5.2 Suez Canal -5.8 -7.2 -3.9 -5.3 Wholesale and retail trade -1.2 0.9 1.6 3.7 Transportation -1.0 0.0 2.2 3.2
Source: Based on the Ministry of Planning data
GDP by Expenditure (at 2011/2012 Market Prices) A follow-up of the developments on the demand side over the first nine
months of 2012/2013 indicates that domestic demand (consumption and investment) remained the driving force of GDP growth, adding 2.1 percentage points. Meanwhile, external demand (exports of goods and services less imports of goods and services) added merely 0.2 percentage point.
Shares of Domestic & External Demand in Real GDP Growth
(at market prices)
-0.1
1.9
4.4
0.2
1.4
-2.1-0.7
-1.1
2.82.2 2.32.2
-4.5-3.5-2.5-1.5-0.50.51.52.53.54.55.5
July/Mar. 2012/2013Q3 2012/2013Q2 2012/2013
Net ExportsCapital FormationFinal ConsumptionReal Growth Rate
(Per
cent
age
poin
t)
- 7 - The 2.1 percentage points of domestic demand to GDP growth resulted
from the contribution of both final consumption (government and private) and capital formation. Final consumption added 2.8 percentage points (mainly due to the 2.5 points contribution of private consumption). Capital formation shared with -0.7 point, as a result of the retreat in implemented investments by 2.1 percent to LE 166.8 billion (of which, 71.7 percent was owed to the private sector). The retreat in investments was an outcome of the decrease in the public sector's investments that accounted for a negative 7.6 points of the change of investments in July/March 2012/2013 (due to the lower shares of some sectors, especially extractions). However, this decrease was curbed by the rise in the investments of the private sector to 5.5 percentage points (owing to the higher shares of most sectors, mainly other manufacturing; agriculture; information; tourism; and construction and building).
Contribution of the Public Sector to the Real Growth of Investment
-0.13-1.83
-4.300.16
0.63
-0.430.070.04
-1.260.01
-0.030.030.03
-0.14-0.10
-0.46-0.41
-0.01
0.84
-1.57
-1.56
-5.00 -4.00 -3.00 -2.00 -1.00 0.00 1.00 2.00 3.00 4.00 5.00
Agriculture, Irrigation & Reclamation Crude Oil
Natural gas Oil Refining
Other ManufacturingElectricity
WaterSanitation
Construction & Building Transportation & Storage
Communications InformationSuez Canal
Wholesale & Retail TradeFinanceTourism
Real Estate Educational Services
Health ServicesOthers
General Reserves
July/Mar. 2011/2012 (2.27 percentage points) July/Mar. 2012/2013 (-7.60 percentage points)
The relative distribution of implemented investments in the reporting
period ran as follows: 19.6 percent in extractions; 10.3 percent in electricity, water and sanitation; 12.0 percent in manufacturing; 3.3 percent in agriculture; 1.4 percent in construction and building; 23.5 percent in productive services; and 29.9 percent in social services and others.
- 8 -
On the quarterly level, although real GDP remained unchanged during Q2
and Q3 of FY 2012/2013, there were some changes in the relative shares of demand components. Statistics indicate that domestic demand (consumption and investment) contributed only 0.8 percentage point in Q3 (against 4.3 points in Q2), while the share of external demand shifted from negative 2.1 points to a positive 1.4 point.
The decrease in domestic demand was a confluence of the decline in final private consumption (1.6 point against 3.8 points) and government consumption (0.3 point against 0.6 point) and the increase in capital formation (a negative 1.1 point against a negative 0.1 percentage point). The better contribution of external demand (1.4 point against negative 2.1 points) was an outcome of the better performance of goods and services exports (1.1 point against 0.4 point) and the negative contribution of imports of goods and services (a negative 0.3 point against 2.5 points).
Contribution of the Private Sector to the Real Growth of Investment
1.14
0.40
-0.52
0.37
0.60
-3.36
0.03
0.95
-0.60
0.70
-0.32
0.16
0.20
1.66
4.13
-10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0 8.0
Agriculture, Irrigation & Reclamation
Crude Oil
Natural gas
Oil Refining
Other Manufacturing
Construction & Building
Transportation & Storage
Communications
Information
Wholesale & Retail Trade
Tourism
Real Estate
Educational Services
Health Services
Other Services
July/Mar. 2011/2012 (-3.95 percentage points) July/Mar. 2012/2013 (5.54 percentage points)
- 9 -
Growth Rates and Share of Demand Components in Real GDP Growth at Market Prices
Share in GDP Growth (Percentage Point)
Growth Rate (%)
2012/2013 2012/2013
Jan./March Oct./Dec. July/March Jan./March Oct./Dec. July/March
2.2 2.2 2.3 2.2 2.2 2.3 Real GDP Growth (1+2)
0.8 4.3 2.1 0.7 4.0 2.0 1-Domestic Demand
1.9 4.4 2.8 1.9 4.9 3.1 A- Final Consumption 1.6 3.8 2.5 2.0 4.7 3.0 Private 0.3 0.6 0.3 1.7 5.8 3.4 Public
-1.1 -0.1 -0.7 -6.5 -0.7 -4.6
B- Capital Formation (Including Change in Stock)
1.4 -2.1 0.2 -17.5 28.2 -2.2 2- Net External Demand
1.1 0.4 0.5 6.1 2.2 2.9 A- Exports of Goods and
Services
-0.3 2.5 0.3 -1.3 9.8 1.4 B- Imports of Goods and
Services Source: Based on the Ministry of Planning data
- 10 - 1/2 - Labor Force, Employment and Unemployment
According to the quarterly Labor Force Survey (LFS) released by
CAPMAS, the size of the labor force increased to 27.2 million persons in Q3 2012/2013, up by 170 thousand persons or 0.6 percent over the preceding quarter. Moreover, the survey reveals that the number of employed grew by 107 thousands or 0.5 percent, to stand at 23.6 million (19.0 million males, and 4.6 million females). The sector of agriculture and fishing accounted for the lion's share of the total number of employees (26.5 percent), followed by construction and building (11.3 percent).
Despite the rise in the number of employed in Q3 2012/2013, relative to
the preceding quarter, unemployment inched up to 13.2 percent from 13.0 percent, reflecting the increase in the number of employed at a lower rate than that of labor force. The growth in unemployment was an outcome of the rise in jobless males (9.7 percent in Q3 of 2012/2013 against 9.6 percent in the preceding quarter) and jobless females (25.0 percent against 24.7 percent). From another perspective, unemployment in the urban sections of the country decelerated to 15.7 percent, from 16.9 percent, while it rose in the rural areas to 11.3 percent, from 10.0 percent.
8.9 8.9
11.9 11.8 11.9 12.6 12.6 12.5 13.0 13.212.4
-4.0-2.00.02.04.06.08.0
10.012.014.0
Sept. Dec. Mar. June Sept. Dec. Mar. June Sept. Dec. Mar.
2010 2011 2012 2013
%
Unemployment Labor Force Employment
Labor Force & Employment Indicators
Source: CAPMAS.
- 11 -
1/3- Inflation A- Consumer Price Index (CPI) In July/March 2012/2013, the annual headline CPI inflation (urban) inched up to 7.4 percent (from 7.1 percent in the previous corresponding period). The rise stemmed from the higher contributions of restaurants and hotels (0.8 percentage point against 0.1 percentage point); and healthcare (0.7 percentage point against nil). In the meantime, decreases were observed in the shares of most other groups, mainly housing, electricity and fuel (0.9 percentage point against 1.5 percentage points), and tobacco and narcotics (0.3 percentage point against 0.6 point).
Annual CPI and Price Index of Food and Non-alcoholic Beverages (Urban)
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
6.4
6.5
6.2 6.7
4.3 4.7 6.
3 8.2
7.6
0.02.04.06.08.0
10.012.014.016.018.020.0
June 2
011
July
AugustSep
t.Oct.
Nov.Dec
.
Jan. 2
012
Feb.
March
AprilMay
June
July
Aug.
Sept.
Oct.Nov.
Dec.
Jan. 2
013
Feb.
March
%
All Items Food and Non-alcoholic Beverages
The larger contribution of restaurants and hotels was traced to the rise in its
inflation rate to 18.6 percent in the reporting period (from 2.8 percent in the corresponding period a year earlier), mainly due to the pickup in the prices of ready meals in Q3 (Jan./March 2013). The higher contribution of healthcare was owed to the rise in its inflation rate to 12.5 percent (from 0.1 percent) on the back of the noticeable hike in the prices of medical products, appliances and equipment in Jan./March 2013.
The marked decline in the share of housing, water, electricity, and fuel (0.9
percentage point against 1.5 point) was attributed to the abatement of the distribution bottlenecks of butane gas cylinders that, in turn, lowered the inflation rate of this group to only 5.5 percent from 9.2 percent.
- 12- Although the share of food and non-alcoholic beverages group slightly
declined (3.6 percentage points against 3.7 percentage points), it continued to be the major driver of the annual inflation because of its high CPI relative weight (39.92 percent). The inflation rate of this group dropped to 8.1 percent, from 8.5 percent.
The retreat in the share of food and non-alcoholic beverages group came on
the back of the decline in the shares of some sub-groups (mainly meat, poultry, and vegetables), even though they remained high. Another factor at work was the pickup in the shares of some other sub-groups, especially cereals, bread, and fruits.
Contribution of Main Items of Food to Headline Inflation (Annually) July/March
-0.6-0.30.00.30.60.91.21.51.82.1
Vegetables Bread &Cereals
Fruit Oil & Fats Sugar Meat &Poultry
Milk,Cheese &
Eggs
Fish
Percentage Point 2011/2012
2012/2013
It is to be noted that according to the IMF food price index for March 2013,
world food prices slightly increased in the last three months of the period under review.
The Change in Inte rna tiona l Food Prices
-10.0-8.0-6.0-4.0-2.00.02.04.06.08.0
10.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
%
Source: IMF.
- 13 -
Inflation Rates of Main CPI Groups and their Shares in Annual Headline Inflation
(January 2010=100)
Inflation Rate in July/March
Share in Headline Inflation in July/March
(%) (Percentage Point)
2011/2012 2012/2013 2011/2012 2012/2013 General Index 7.1 7.4 7.1 7.4 Food and non-alcoholic beverages 8.5 8.1 3.7 3.6 Alcoholic beverages, tobacco and narcotics 18.8 7.7 0.6 0.3 Clothing and footwear 4.5 3.4 0.2 0.2 Housing, water, electricity, gas & fuel 9.2 5.5 1.5 0.9 Furnishings, household equipment and routine maintenance 5.1 3.8 0.2 0.1 Healthcare 0.1 12.5 0.0 0.7 Transportation 2.8 1.9 0.1 0.1 Communications -4.5 0.0 -0.1 0.0 Culture and recreation 6.6 6.3 0.2 0.1 Education 9.9 11.4 0.5 0.6 Restaurants and hotels 2.8 18.6 0.1 0.8 Miscellaneous goods & services 1.7 1.1 0.1 0.0
According to the CPI (urban), headline inflation (m/m) registered 0.7
percent on average in both the reporting period and the period of comparison. In the reporting period, headline inflation (m/m) recorded its highest level (2.5 percent) in February 2013 spurred by the higher contributions of restaurants and hotels, healthcare, and food and non-alcoholic beverages. On the other hand, it edged down to its lowest level in November 2012 (negative 1.3 percent).
Monthly Inflation Rate According to CPI (Urban)
-1.5-1.0-0.50.00.51.01.52.02.53.0
June 2
011
July
Aug. Oct.Nov.
Dec.
Jan
. 201
2 Feb
.
March
April MayJu
neJu
lyAug.
Sept.
Oct.Nov.
Dec.
Jan.20
13Feb
.
Mar
ch
%
- 14 - B- Producer Price Index (PPI)
Taking an upward trend, similar to the CPI, annual headline PPI inflation accelerated to 4.8 percent (against 4.0 percent).
Annual Inflation Rate According to PPI (2004/2005=100)
-6
-2
2
6
10
14
18
22
June 2
011
July
AugustSep
t.Oct.
Nov.Dec
.
Jan 20
12.
Feb.
March
AprilMay
June
July
Aug.Sep
t.Oct.
Nov.Dec
.
Jan 20
13.
Feb.
March
%
The rise in PPI inflation was ascribed to the following developments:
- The increase in the share of agriculture and fishing to 1.3 percentage point (against only 0.3 point) mainly due to the larger contribution of vegetables (0.7 point against a negative 0.8 point) and cotton (nil against a negative 0.2 point). However, this rise was held back by the decline in the shares of fish; and poultry and eggs by 0.3 point and 0.2 point, respectively.
- The higher contribution of manufacturing to 1 percentage point (against
0.6 point) fuelled by the rise in the shares of iron steel; and cement.
- The pickup in the share of electricity and gas by 0.2 point.
- The retreat in the share of mining and oil (2.1 points against 2.9 points), owing to the lower contribution of crude oil from 4.4 points to 3.2 points.
-15-
Inflation Rates of Main PPI Groups and their Shares in Headline Inflation
(2004/2005=100)
Inflation Rate (%)
Share in Headline Inflation
(Percentage Point) July/March July/March
2011/2012 2012/2013 2011/2012 2012/2013 General Index 4.0 4.8 4.0 4.8 1-Agriculture and Fishing, of which: 0.8 3.9 0.3 1.3 Cereals and leguminous crops 6.8 6.3 0.3 0.3 Rice -7.8 -1.4 -0.1 0.0 Vegetables -10.2 14.3 -0.8 0.7 Fruits -1.9 -3.1 -0.1 -0.2 Cotton -20.4 -2.2 -0.2 0.0 Poultry and eggs 16.0 10.5 0.6 0.4 Fish 13.7 0.7 0.3 0.0 2-Mining & Quarrying, of which: 12.6 9.8 2.9 2.1
Crude oil 15.1 12.3 4.4 3.2 Sand and stone -0.7 9.5 0.0 0.0
3-Manufacturing, of which: 1.9 3.0 0.6 1.0 Processed food products, of which: 3.5 1.4 0.3 0.1
Oils and fats 0.1 2.1 0.0 0.0 Dairy products 2.8 0.0 0.0 0.0 Fertilizers 4.3 10.4 0.0 0.1 Wood & products 6.3 -1.9 0.0 0.0 Cement -5.7 19.7 -0.1 0.2 Iron and steel -5.6 4.3 -0.3 0.2 4-Electricity and Gas, of which: 0.0 10.6 0.0 0.2 Electric power generation, transmission and distribution 0.0 4.2 0.0 0.1 5-Water Supply Activities 7.4 0.0 0.1 0.0 6-Transportation and Storage, of which: 3.0 0.0 0.1 0.0 Land transport 0.0 0.0 0.0 0.0 7-Accomodation and Food Services, of which: 2.8 5.3 0.1 0.2 Meal serving services in limited service facilities 0.0 13.0 0.0 0.1 8-Information and Communications 0.0 0.0 0.0 0.0 Source: CAPMAS
- 16 - 1/4- Tourism
During July/March 2012/2013, tourism witnessed a relative improvement
as compared with the previous corresponding period. According to the statistics of the Ministry of Planning, real GDP of tourism sector grew by 10.2 percent (against a retreat of 1 percent), bringing the share of this sector to 0.32 percentage point of the real GDP growth achieved in the reporting period (2.26 percent).
Data also indicates that real GDP of the said sector increased to 17.8
percent during Q3 (January/March) of FY 2012/2013 (against 12.8 percent in Q2 of the same year). Accordingly, this sector achieved a positive output gap of 12.7 percent in Q3 as mentioned in Chapter (1) of this Review.
According to the statistics of the Central Agency for Public Mobilization
and Statistics (CAPMAS) and the Ministry of Tourism, the relative improvement in tourism was mainly spurred by the rise in the number of arrivals in July/March 2012/2013 by 11.5 percent, as compared with the previous corresponding period, to reach 9.1 million (against 8.2 million). Another factor at work was the pickup in the number of tourist nights by departure to 114.6 million (against 100.4 million) up by 14.2 percent. Concurrently, the average visitor stay edged up to 12.5 nights (from 12.2 nights).
Number of Tourists and Tourist Nights during July/March
7.607.808.008.208.408.608.809.009.20
2011/2012 2012/2013
Mill
ion
Tour
ists
90.0
95.0
100.0
105.0
110.0
115.0
120.0
Mill
ion
Nig
hts
Number of Tourists Number of Tourist Nights
- 17 -
Against this background, tourism revenues mounted by 14.0 percent to US$ 8.1 billion or 15.7 percent of total current receipts in foreign currencies (2.9 percent of GDP at current market prices) in July/March 2012/2013 against US$ 7.1 billion or 14.7 percent (2.8 percent of GDP in the period of comparison). The increase was achieved despite the continuous decrease in the average spending per tourist a night to US$ 67.0 in Q3 (Jan./March) of FY 2012/2013 against US$ 70.3 in Q2 (Oct./Dec.), and US$ 74.4 in Q1 (July/September) of the same FY. This was partly attributed to the noticeable decline in the LE exchange rate vis-à-vis the US dollar by 11.1 percent (against a decrease of only 1.2 percent in the period of comparison).
Investments in the tourism sector amounted to some LE 5.6 billion,
constituting 3.1 percent of total executed investments in July/March 2012/13 (against LE 4.2 billion or 2.6 percent in the corresponding period). The private sector invested around 95.2 percent of the total, in the amount of LE 5.3 billion.
Tourism Indicators
July/March 2011/2012 2012/2013 Change + (-)(%)
Number of arrivals (000s) 8210 9155 11.5 Number of tourist nights by departure (000s) 100390 114617 14.2 Tourism revenues (US$ bn) 7.08 8.08 14.0 Average tourist stay (night) 12.2 12.5 2.4
Source: CAPMAS, and the Ministry of Tourism. Geographical Distribution of Tourist Flows
1-Number of Arrivals:
Total arrivals from all tourist markets (excluding the group of African countries) increased during July/March 2012/2013 as compared with the same period a year earlier. The European group remained in the forefront, with a relative weight of 73.5 percent of the total, as the number of arrivals therefrom rose by 0.6 million or 10.0 percent. The Middle East group ranked second with a relative weight of 17.0 percent, as the number of arrivals therefrom scaled up by 0.3 million or 21.1 percent. Asia and the Pacific recorded the highest rate of growth (23.8 percent). Conversely, arrivals from the African group retreated by 2.5 percent.
- 18 -
Number of Arrivals
July/March 2011/12 2012/13 Change No.
(000s) Relative Weight
No. (000s)
Relative Weight + (-) %
Total 8210 100.0 9155 100.0 945 11.5 Europe 6119 74.5 6731 73.5 612 10.0 Middle East 1284 15.6 1555 17.0 271 21.1 Africa 319 3.9 311 3.4 -8 -2.5 The Americas 205 2.5 209 2.3 4 2.0 Asia and the Pacific 265 3.2 328 3.6 63 23.8 Others 18 0.2 21 0.2 3 16.7
2- Tourist Nights by Departure:
As for the geographic distribution of tourist flows in terms of tourist nights by departure, the European group came in the lead, accounting for 67.8 percent of the total, up by 18.7 percent as compared with the previous corresponding period. Sharing with 22.8 percent, the Middle East group ranked second with a pickup of 9.3 percent in the number of tourist nights. Conversely, the nights spent by the other tourist groups declined, except for the Asian and Pacific group that posted a rise of 17.4 percent.
Number of Tourist Nights by Departure
July/March
2011/12 2012/2013
Change
No.
(000s)Relative Weight
No.(000s)
Relative Weight + (-) %
Total 100390 100.0 114617 100.0 14227 14.2Europe 65424 65.2 77688 67.8 12264 18.7Middle East 23922 23.8 26147 22.8 2225 9.3Africa 4637 4.6 4253 3.7 -384 -8.3The Americas 3367 3.4 3089 2.7 -278 -8.3Asia and the Pacific 2817 2.8 3308 2.9 491 17.4Others 223 0.2 132 0.1 -91 -40.8
- 19 -
2- Monetary and Banking Developments 2/1- Monetary and Banking Policy and Monetary Aggregates
2/1/1- Monetary Policy
As the ultimate objective of the monetary policy is price stability, the
CBE seeks to bring inflation to an appropriate and stable level conducive to bolstering confidence, stimulating investment, and achieving the targeted economic growth.
The overnight inter-bank 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 in the overnight interest rate on lending from the Central Bank and the floor is the overnight deposit interest rate at the Bank.
Hereunder are the main developments that took place during July/March
2012/2013:
1- Interest Rates The decisions taken by the MPC in its six periodic meetings held in
July/March 2012/2013 were responsive to the changes in inflation and the Committee's assessments of inflationary pressures. In its first five meetings dated 26 July, 6 Sept., 18 Oct., 6 Dec. 2012, and 31 Jan. 2013, the MPC decided to keep the CBE's key interest rates (overnight deposit and lending rates) unchanged at 9.25 percent and 10.25 percent per annum, in order. Also, the lending and discount rate was maintained at 9.50 percent per annum, and the repo rate at 9.75 percent per annum. However, in its sixth meeting held on 21 March 2013, the MPC decided to raise the overnight deposit and lending rates by 50 bps, to 9.75 percent and 10.75 percent, respectively, and the rate of the CBE's main operations (whether repos or deposit auctions, determined according to the liquidity situation in the market) by 50 bps to 10.25 percent. The lending and discount rate was also raised by 75 bps to 10.25 percent.
Moreover, in its 7th meeting dated 9 May 2013 (at the time of preparing
this Review), the Committee decided to keep the overnight deposit and lending rates unchanged at 9.75 percent and 10.75 percent per annum, in order. Similarly, the lending and discount rate and the CBE's main operations rate were each maintained at 10.25 percent per annum.
- 20 - The following table shows the developments of the CBE's key interest
rates, the CBE's main operations rate, and the lending and discount rate, according to the MPC's decisions taken in the meetings held during the period:
Date Overnight
Deposit Rate Overnight
Lending Rate 7-Day
Repo Rate Lending and
Discount Rate 14 June 2012 9.25 % 10.25 % 9.75 % 9.50 % 26 July 2012 unchanged unchanged unchanged Unchanged 6 Sept. 2012 unchanged unchanged unchanged Unchanged 18 Oct. 2012 unchanged unchanged unchanged Unchanged 6 Dec. 2012 unchanged unchanged unchanged Unchanged 1 Jan. 2013 unchanged unchanged unchanged Unchanged 21 March 2013 9.75 10.75 10.25∗ 10.25
∗ The rate of the CBE's main operations (whether repos or deposit auctions, determined according to the liquidity situation in the market). As of 2/4/2013, the CBE's main operations were confined to deposit auctions.
Given the decline in the average liquidity deficit at the banking system, the
weighted average of the overnight interbank interest rate fluctuated up and down, hovering around the middle of the corridor during the period under review. (see the following chart)
- 21 -
O/N Interbank Rate and Policy Rates
7.00
7.50
8.00
8.50
9.00
9.50
10.00
10.50
11.00
11.50
12.00
12.50
13.00
13.50
14.00
Jun-08
Sep-08
Dec-0
8
Mar-09
Jun-09
Sep-09
Dec-0
9
Mar-10
Jun-10
Sep-10
Dec-1
0
Mar-11
Jun-11
Sep-11
Dec-1
1
Mar-12
Jun-12
Sep-12
Dec-1
2
Mar-13
( % )
Overnight Inter-bank Rate Overnight Deposit Rate Overnight Lending Rate
- 21 - The MPC's decisions to raise the CBE's key interest rates were reflected
on market interest rates. In detail, the weighted average of the market interest rate on the deposits of three months, six months and one-year mounted to 7.8 percent, 7.8 percent and 9.1 percent, respectively in March 2013 (against 7.7 percent, 7.6 percent and 8.4 percent in June 2012). Furthermore, the weighted average of the market interest rate on one-year loans rose to 12.3 percent in March 2013+ (against 11.9 percent).
2- Open Market Operations
The CBE adopted a number of measures to address the shortage of liquidity in local currency at the banking system. First, it reduced the required reserve ratio twice (from 14 percent to 12 percent, and further to 10 percent). Second, it continued to pump liquidity in local currency by moving to conduct seven-day repo operations, along with the 28 day repo operations (suspended as of the end of Oct. 2012). The action bore fruit in the first half of FY 2012/2013 as the average liquidity deficit of the banking system noticeably declined and shifted into a surplus in Q3 of 2012/2013. This prompted the CBE to suspend the 7-day repo operations and to start using the seven-day deposit auctions to absorb the excess liquidity at the banking system. The first deposit auction of a 7-day maturity was conducted on 2 April, 2013. The following table illustrates the development of liquidity at the banking system:
Average Liquidity in Local Currency at the Banking System
(LE bn)
Statement
Date
Average Repo
Operations
Average Overnight Deposit Operations
at the CBE
Average Liquidity
Surplus/Deficit
June 2012 (33.1) 6.4 (26.7) July 2012 (30.1) 6.8 (23.3) August 2012 (17.4) 5.4 (12.0) September 2012 (13.8) 10.4 (3.4) October 2012 (12.2) 14.4 2.2 November 2012 (8.9) 12.4 3.5 December 2012 (10.2) 10.0 (0.2) January 2013 (5.9) 12.5 6.6 February 2013 (3.9) 17.3 13.4 March 2013 (2.4) 19.2 16.8
___________________ + Interest rate on corporate loans after the application of DMMS
- 22 -
2/1/2- Reserve Money (M0) Reserve money (known as monetary base or high-powered money) is
considered the monetary base in its broad meaning. Reserve money consists of the sum of currency in circulation outside the CBE and banks' local currency deposits held at the CBE. The counterpart assets of reserve money are made up of the CBE's net foreign assets and net domestic assets. The latter includes net claims on both the government and banks, and other items (net).
Reserve money reached LE 281.0 billion at end of March 2013, with an
increase of LE 17.3 billion or 6.6 percent in July/March 2012/2013 (against a slight rise of LE 0.3 billion or 0.1 percent in the same period a year earlier). The rise in reserve money was concentrated in the period Jan./March of 2013 in which it soared by LE 16.7 billion or 6.3 percent. The rise in reserve money during the period led to an increase in the currency in circulation outside the CBE by LE 28.8 billion or 14.1 percent, to LE 233.7 billion or 83.2 percent of reserve money at end of March 2013. However, the increase was held back by the decline of LE 11.5 billion or 19.6 percent in banks' local currency deposits at the CBE, to stand at LE 47.3 billion.
The pickup in the currency in circulation outside the CBE was a reflection
of the increase of LE 28.8 billion or 13.9 percent in banknote issue in July/March 2012/2013 (of which LE 17.2 billion or nearly 60 percent of the total increase during the period under review was realized in Jan./March 2013),
(4.6) (4.4)
15.5
4.70.2
11.0
-8.00-6.00-4.00-2.000.002.004.006.008.00
10.0012.0014.0016.00
2010/2011 2011/2012 2012/2013
Currency in circulation outside the CBE
Banks' deposits in local currency
Growth rate of reserve money
(٪)
Growth Rate of Reserve Money by ComponentJuly/March
- 23 - against a rise of LE 13.8 billion or 7.7 percent in the period of comparison. This drove its balance up to LE 236.3 billion at end of March 2013 or 13.3 percent of the targeted GDP for FY 2012/2013. As for the components of the issue cover, gold constituted LE 20.0 billion worth, the Egyptian government bonds LE 178.8 billion, and foreign currencies and notes LE 37.5 billion worth. Thus, the structure of the cover at end of March 2013 was as follows: 75.7 percent of government bonds, 15.9 percent of foreign currencies and notes, and 8.4 percent of gold.
The breakdown of the currency in circulation by denomination showed
that the relative importance of the LE 100 note rose to 40.8 percent at end of March 2013 against 40.5 percent at end of June 2012. Likewise, the relative importance of the LE 200 note rose from 42.6 percent to 44.0 percent. By contrast, the relative importance of the remaining denominations declined. Accordingly, the average value per note rose to LE 46.9 at end of March 2013 (from LE 42.8 at end of June 2012).
Components of Banknote Issue Cover
20.048.1
8.7
131.6 129.1 178.8178.8
16.3 20.016.431.9 37.550
100
150
200
250
June 11 Mar. 12 June 12 Mar. 13
LE bn
Gold Foreign currencies & notes Government bonds
-24-
The Relative Importance of Currency in Circulation by Denomination (at End of)
Regarding the counterpart assets of reserve money, net domestic assets made a positive contribution of 19.8 percentage points, which was curbed by the negative contribution of net foreign assets (13.2 percentage points).
The LE 52.1 billion increase in the CBE's net domestic assets came as a
result of the rise in the CBE's net claims on both the government and banks. Such a rise, however, was held back by the decline in net balancing items.
March 2013
4.9%9.5%
40.8%
44.0%
0.8%
June 2012
6.0%10.1%
40.5%
42.6%
0.8%
Up to LE 1
LE 5-LE 20
LE 50
LE 100
LE 200
Net claims on
government 97.2%
Net foreign assets 14.7%
Net claims on banks-0.8%
Net balancing
items-11.1%
The Relative Importance of Counterpart Assets of Reserve Money
at End of March 2013
- 25 -
The CBE's net claims on the government accelerated by LE 107.8 billion (LE 59.0 billion of which or more than half of the increase in the period under review took place in Jan./March 2013). The increase was an outcome of the LE 113.7 billion pickup in the CBE's claims on the government and the LE 5.9 billion rise in government deposits at the CBE. Also, the CBE's net claims on banks scaled up by LE 0.5 billion due to the increase in its claims by LE 6.2 billion, and the pickup in banks' foreign currency deposits at the CBE by LE 5.7 billion worth.
Net balancing items had a contractional effect on reserve money, as they
retreated by LE 56.2 billion. That stemmed primarily from the LE 56.4 billion drop in the balance of open market operations, owing to the decline in the balance of repo agreements by some LE 34.0 billion and the rise in banks' deposits accepted at the CBE by LE 22.4 billion.
Net foreign assets at the CBE shrank by LE 34.8 billion worth, due to the
fall in the CBE's foreign assets by LE 6.8 billion worth and the rise in foreign liabilities by LE 28.0 billion worth (mostly deposits from Arab countries at the CBE).
0
50
100
150
200
250
300
Mar.2011 June 2011 Mar.2012 June 2012 Mar.2013
Loans & advances Government securities Deposits Net claims on government
CBE's Net Claims on Government LE bn
- 26 - 2/1/3- Domestic Liquidity (M2) and Counterpart Assets
Domestic liquidity (M2) consists of currency in circulation outside the
banking system and non-government deposits at banks (in both local and foreign currencies). In July/March 2012/2013, domestic liquidity increased by more than threefold its increase in the same period a year earlier. In figures, domestic liquidity grew by LE 142.5 billion or 13.0 percent (down to LE 118.3 billion or 10.8 percent after excluding the impact of changes in exchange rate), against LE 45.6 billion or 4.5 percent in the period of comparison. Thus, total domestic liquidity amounted to LE 1236.9 billion at end of March 2013 or 69.6 percent of GDP for FY 2012/2013. It was noted that nearly half of the increase in domestic liquidity (49.0 percent) took place during the period Jan./March 2013, in which it mounted by LE 69.8 billion or 6.0 percent.
The pickup in domestic liquidity during the reporting period was a
reflection of the growth in money supply and quasi-money. Money supply rose by LE 52.0 billion or 19.0 percent (of which LE 38.4 billion or almost three-quarters of the increase in the period under review was realized in Jan./March 2013), against LE 12.0 billion or 4.8 percent in the previous corresponding period, reaching LE 326.5 billion or 26.4 percent of total domestic liquidity at end of March 2013. The increase in money supply was attributable to the increase in currency in circulation outside the banking system by LE 27.3 billion or 14.1 percent and the rise in LE demand deposits at banks by LE 24.7 billion or 30.7 percent. Almost 90 percent of the rise (LE 22.1 billion) was concentrated in the period Jan./March 2013. The pickup in the period under review primarily reflected the increase in the deposits of the private sector by LE 25.8 billion.
Domestic Liquidity End of March 2013
Quasi-money73.6%
Money supply26.4%
Demand deposits in local currency
8.5%
Currency in circulation outside the
banking system17.9%
- 27-
Quasi-money augmented by LE 90.5 billion or 11.0 percent (against
LE 33.6 billion or 4.4 percent in the corresponding period a year earlier) to LE 910.4 billion or 73.6 percent of total domestic liquidity at end of March 2013. Such a rise was driven by the growth in both LE time and saving deposits and foreign currency deposits. In figures, LE time and saving deposits surged by LE 56.7 billion or 8.9 percent (against LE 26.5 billion or 4.5 percent) to LE 690.6 billion or 75.9 percent of quasi-money and 55.8 percent of total domestic liquidity at end of March 2013. Almost 92.2 percent of the increase in LE time and saving deposits was concentrated in household deposits that rose by LE 52.3 billion or 9.3 percent, to LE 614.8 billion. Also, deposits of the private business sector increased by LE 4.9 billion or 9.1 percent, to reach LE 58.8 billion. Meanwhile, deposits of the public business sector went down by LE 0.5 billion.
Foreign currency deposits went up by LE 33.8 billion worth or 18.2 percent (down to the equivalent of LE 9.6 billion after excluding the impact of changes in exchange rate), against LE 7.1 billion or 4.0 percent. Hence, they amounted to LE 219.8 billion worth or 21.6 percent of total deposits at banks (dollarization rate) at end of March 2013, against 20.7 percent at end of June 2012.
Change in Domestic Liquidity by Component
0
20
40
60
80
July/September 2012 October/December 2012 Jan./March 2013
Currency in Circulation Outside the Banking SystemLocal Currency DepositsForeign Currency DepositsDomestic Liquidity
LE bn
- 28 -
Dollarization Rate (Deposits in US$/Total Deposits)& Interest Rates on Deposits in LE & US$
0.0
2.0
4.0
6.0
8.0
10.0
Mar.20
10
Jun.2
010
Sept.2
010
Dec.20
10
Mar.20
11
Jun.2
011
Sept.2
011
Dec.20
11
Mar.20
12
Jun.2
012
Sept.2
012
Dec.20
12
Mar.20
13
(%)
17.019.021.023.025.027.029.0
(%)
Interest Rate on less than 3-month Deposits in LEInterest Rate on 3-month Deposits in US$Dollarization Rate
As for the contribution of the counterpart assets of domestic liquidity to
its growth, net domestic assets made a positive contribution of 15.6 percentage points, which was mitigated by the negative contribution of net foreign assets (2.6 percentage points).
The LE 170.8 billion rise in net domestic assets was ascribed to the
pickup in domestic credit by LE 208.1 billion or 19.4 percent (against LE 142.5 billion or 16.0 percent) to LE 1280.7 billion at end of March 2013. Meanwhile, the negative balance of net balancing items increased by LE 37.3 billion or 27.5 percent to LE 173.1 billion at end of March 2013.
Domestic Liquidity Growth by Counterpart Assets July / March
-1.8
-8.1
-2.6
10.4
14.1
19.0
-0.9 -1.5-3.4
13.0
4.5
7.7
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
2010/2011 2011/2012 2012/2013
(%) Net Foreign Assets Domestic Credit AssetsNet Balancing Items Domestic Liquidity Growth
- 29 -
The increase in domestic credit was noticeable in all sectors. Specifically, the government sector accounted for the bulk of the increase (83.1 percent) as net claims on the government increased by LE 173.0 billion or 29.9 percent (against a rise of LE 115.8 billion or 26.5 percent in the same period a year earlier). This brought its balance up to LE 751.7 billion or 58.7 percent of total credit at end of March 2013. The rise came as a result of the pickup in banks' holdings of government securities and TBs by LE 69.5 billion and in loans to the government by LE 114.9 billion, on the one hand, and the increase in government deposits at banks by LE 11.4 billion, on the other. The increase in net claims on the government was due to the fact that the government resorted to banks and the CBE to finance part of the budget deficit during the period. The CBE financed LE 107.5 billion of that deficit, while banks covered LE 65.2 billion. (Ministry of Finance data)
Public Business Sector 3.4%
Private Business Sector28.2%
Household Sector 9.7%
Government Sector (net)
58.7%
Domestic Credit by Sector at End of March 2013
Growth in Domestic Credit by Sector July / March
0.002.004.006.008.00
10.0012.0014.0016.0018.0020.00
2010/2011 2011/2012 2012/2013
(%)
Government Sector (net) Public Business SectorPrivate Business Sector Household SectorDomestic Credit Growth
- 30 - Credit extended by banks to the private business sector surged by LE 19.9
billion (against LE 8.4 billion) to reach LE 360.8 billion or 28.2 percent of total domestic credit at end of March 2013. Such a rise was distributed as follows: 45.6 percent for manufacturing, 27.6 percent for trade, 23.0 percent for services, and 3.8 percent for agriculture.
Also, credit to the household sector expanded by LE 11.7 billion or 10.4
percent (against LE 10.0 billion or 10.1 percent), to stand at LE 124.1 billion or 9.7 percent of total domestic credit at end of March 2013. In addition, credit to the public business sector rose by LE 3.5 billion or 8.5 percent (against a rise of LE 8.2 billion or 24.8 percent) bringing its balance to LE 44.1 billion or 3.4 percent of the total.
It is to be noted that 44.5 percent of the increase in domestic credit
(LE 92.7 billion) was concentrated in the period Jan./March 2013. Of this figure, the government received 79.0 percent, the private business sector 15.5 percent, the household sector 5.3 percent, and the public business sector only 0.2 percent.
Net foreign assets at the banking system decreased to LE 129.3 billion
worth at end of March 2013, down by LE 28.3 billion worth or 17.9 percent in the reporting period (against a decrease of LE 81.3 billion worth or 32.1 percent in the same period a year earlier). The decline was due to the fall in net foreign assets at the CBE by LE 34.8 billion worth or 45.7 percent and the rise in net foreign assets at banks by LE 6.5 billion worth or 8.0 percent. It is worthy to note that net foreign assets at the CBE was affected by the rise in foreign liabilities due to the pickup in the deposits of some foreign countries at the CBE.
Net Foreign Assets w ith
Banks68.1%
Net Foreign Assets w ith
the CBE31.9%
Relative Structure of Net Foreign Assets End of March 2013
.
-31 -
Change in Foreign Assets and Liabilities at the Banking System
(Value in LE mn) Change + (-)
during July/March 2011/2012 2012/2013
Value Growth Rate
% Value Growth Rate %
Net Foreign Assets at the Banking System (81320) (32.1) (28278) (17.9) Net Foreign Assets at the CBE (68306) (46.4) (34777) (45.7) - Assets (67146) (43.0) (6806) (7.4) - Liabilities 1160 12.7 27971 173.6 Net Foreign Assets at Banks (13014) (12.2) 6499 8.0 - Assets (16751) (12.0) 5980 5.2 - Liabilities (3737) (11.4) (519) (1.6)
2/1/4- Payment Systems and Information Technology (IT)
The CBE continued its efforts to upgrade the payment systems and information technology to bolster the soundness and stability of the financial system and reduce credit risks, together with expediting payment settlements and ensuring their credibility and confidentiality. A step forward in this direction was the introduction of a national payment system. Among the measures taken in this regard were the following: Payment Systems • The continued use of the RTGS system to conduct interbank transfers among
Egyptian banks. RTGS also serves as a tool for liquidity management, which in turn assists Egyptian banks to manage their required reserves at the CBE. Add to this the regular operation of the Automated Clearing House.
• The ACH direct debit service between banks and the Egyptian Banks
Company was activated. Such payment service will help facilitate the expansion of electronic-based payments.
• The CBE is currently gearing to join the COMESA Clearing House. This initiative aims at supporting the trade exchange with the COMESA countries as a major contributor to the Egyptian national security. 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.
- 32 - • In collaboration with the Ministry of Finance, the CBE is in the process of
transferring government payments (paper cheques) into electronic payments to be effected by banks through Automated Clearing House. That project aims at upgrading government procedures and tightening control on government payments.
Information Technology • The CBE has prepared the RFP for the fixtures and fittings of a permanent
Disaster Recovery (DR) site for the CBE, 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 specialized companies for bidding.
• The CBE made an elaborate study of the needs of the IT (including the
estimated cost) for the establishment of a “Business Continuity Site” designed to be accessible, in emergency cases, to the employees of the sectors of investment and external relations and their affiliate units, and the banking operations sector to enable them to use the bank's different systems. This site is currently under construction.
• In respect of the IT development plan at the Printing Press, the accounting
system and the monitoring of inventory system were put into operation. Moreover, the upgrading of the costs system is being completed, together with modernizing the IT infrastructure of the Press. Under the plan of developing the CBE branches and modernizing their IT applications, the accounting system of the CBE “CAS” started operation in the branches of Alexandria and Port Said.
• The CBE has participated in the IT infrastructure installation and
implementation project and has taken 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, that are due to suppliers, into electronic (cashless) government payments through ACH system then through the RTGS between banks.
• The IT infrastructure installation and implementation project has been
launched and necessary precautions have been 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,
- 33 -
but also to automatically and directly affect government accounts on the CAS system therein. In this sense, the project will enhance the efficiency and expedite the settlement of government receipts processed through the ACH.
• Yield Curve (a system of analyzing interest rates on treasury bills traded in
the Egyptian market and publishing benchmark reports of weighted interest rates) has been already applied.
2/1/5- RTGS and SWIFT Local Services
Local banking transfers under the RTGS showed a decrease in the number
of executed messages to 953.2 thousand, at a value of LE 8872.5 billion in July/March of FY 2012/2013 (against 965.5 thousand, at a value of LE 6858.3 billion in the corresponding period a year earlier).
RTGS and SWIFT Local Services
(in Local Currency) Change during the Period
Number Value 2010/2011 931291 13132273 66118 3044194 2011/2012 965478 6858343 34187 (6273930) 2012/2013 953224 8872450 (12254) 2014107
According to the statistics of the CBE Automated Clearing House that
applies the RTGS system, the number and value of exchanged papers scaled up to 9.8 million, at a value of LE 525.5 billion (from 9.5 million at a value of LE 484.9 billion in the same period a year earlier). As a result, the average value per paper increased to LE 53.4 thousand (against LE 51.0 thousand).
CBE Automated Clearing House Activity
Change Rate (%) Number Value
2010/2011 9641 463261 0.3 8.3 2011/2012 9509 484882 (1.4) 4.7 2012/2013 9838 525523 3.5 8.4
- 34 - Transactions executed in foreign currencies under the Fin-Copy system,
via SWIFT, revealed a decrease in terms of the number and value of executed transactions. Specifically, their number amounted to 8.6 thousand, at a value of US$ 31.5 billion, against 10.6 thousand, at a value of US$ 47.9 billion a year earlier.
SWIFT Local Service
(in US Dollar) Change during the Period
Number Value 2010/2011 11596 71168 2721 20129 2011/2012 10592 47940 (1004) (23228) 2012/2013 8649 31529 (1943) (16411)
- 35 -
2/2- Banking and Credit Developments 2/2/1- Banking Reform
The CBE finished the implementation of the banking reform program. The
first phase was launched in September 2004 and completed in 2008 and the second phase (2009-2011) was completed in March 2012. The second 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. This phase 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, the Egyptian Arab Land Bank, and the Industrial Development and Workers Bank of Egypt), which is expected to positively affect these banks’ performance.
Following up periodically 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 these 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 competitiveness.
Applying Basel II standards in Egyptian banks is considered an integral part
of Egypt's regulatory framework, that aims at the following:
- Enhancing the management of all risk types to ensure banking 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.
- 36 - 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 the compliance of all banking system units with these standards. According to the above-said strategy, Basel II standards have been applied gradually over four phases, which aimed at the following (1) improving the technical skills of the CBE’s core team and devising a strategy for Basel II implementation, (2) extensive coordination with the banking sector, through discussion papers related to the most important topics and selection of the most appropriate methods for application in Egypt. (3) focusing 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.
As the CBE seeks to apply the international best practices in line with the
developments in the banking market, and in light of the previously announced strategy in October 2009 concerning the application of these requirements, the CBE's BoD approved in its session dated 18 Dec. 2012 the instructions for the minimum capital adequacy standard in the context of applying the above-mentioned requirements. At the same time, the CBE requires banks to observe the following:
• Banks operating in Egypt –excluding branches of foreign banks– are required
to maintain a minimum capital adequacy ratio of 10 percent calculated as the ratio between the components of capital base (numerator) and the risk-weighted assets (denominator) to face credit, market and operating risks. Branches of foreign banks are subject to the regulations stated in the regulatory instructions, except for maintaining the aforementioned ratio.
• Banks operating in Egypt are required to apply the regulations contained in
these instructions. For banks with fiscal year ending in December, these regulations shall be binding as of December 2012 and for banks with fiscal year ending in June, these regulations shall be binding as of June 2013. In addition, banks shall submit their data according to the previously
- 37 -
issued regulations concerning capital adequacy in parallel with the new regulations during a transition period of up to six months to ensure the validity of the systems which guarantee the accuracy of data.
The instructions regarding the internal control systems at banks are
scheduled to be issued in 2013. As for the risks of the second pillar of Basel's requirements, namely the concentration, liquidity, and interest rate risks in banking portfolio, the instructions thereof shall be issued after ensuring that banks comply with the late-issued instructions regarding the first pillar (the minimum capital adequacy requirement).
During the quarter ending 31 March 2013, the CBE received reports from
banks with fiscal year ending in December on capital adequacy standard according to the said instructions. The CBE also revised and examined these reports and instructed banks to make their comments during the Basel II transition period. 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 required reserve 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 CBE and the Egyptian Banking Institute (EBI), in collaboration with the Central Agency for Public Mobilization and Statistics (CAPMAS), embarked on a field survey of 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.
- 38 -
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 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. After the 25th Jan. revolution, the CBE took a number of measures to promote trade, maintain the banking sector transactions and launch the mechanisms that enhance liquidity.
Hereunder are the instructions issued by the CBE to all banks during and
after the period under review:-
• A circular was issued on 14 January 2013 regarding setting a mechanism to prioritize client applications to purchase foreign currency via available resources at banks. Also, banks were permitted to refinance import operations for clients by providing temporary facilities in foreign currency until they meet their foreign currency requirements.
• Extending exemption from the minimum cash cover limit (50%) for all
meat, poultry and sugar imports for additional six months, ending 30 June 2013 (during the period under review this period was extended for another six months ending 31 December 2013). Moreover, a circular dated 4 Feb. 2013 was issued regarding exempting imports of additional
- 39 - products from cash margin (medicine, vaccines and related chemicals;
infant formula; foodstuffs (wheat and seed oils); fodder (maize, soya beans and other requirements); and fertilizers and insecticides).
• A circular dated 4 Feb. 2013 was issued regarding transactions having priority in availing foreign currency for the imports of basic foodstuffs and supply commodities; production machinery, equipment and spare parts; intermediate goods, production requirements and materials; oil products and derivatives; medicine, vaccines and related chemicals; fertilizers, insecticides and requirements; and artificial greases and oils.
• A circular dated 13 March 2013 was issued regarding the CBE's initiative to support the tourism sector. In particular, the CBE decided to give more credit facilities to investors engaged in certain activities. This included the granting of a one-year grace period starting from the date of issuing the regulations, during which outstanding interest payments would be delayed. Banks were allowed to exercise their own discretion in taking appropriate decisions in this respect.
• A circular dated 29 December 2012 was issued to amend banks' currency equilibrium regulations (given that banks shall abide by the established regulations as of 30 Dec. 2012).
• In the context of encouraging Egyptians to transfer their savings to Egypt to be invested, whether in LE or in foreign currencies, it was decided on 4th of February 2013 to allow natural Egyptian persons who transfer their savings from their accounts abroad to one of the banks in Egypt as of 10th February 2013 to retransfer the same amount to abroad, in the name of the transferring persons, at the time of liquidating all/part of their investments after submitting the proving documents. Each bank shall register the transfers of its customers as of the aforementioned date.
• A circular dated 13 March 2013 was issued to reactivate the mechanism for repatriating funds of foreign investors. The mechanism has been expanded to cover treasury bills and bonds together with the shares listed on the Egyptian Exchange.
• Setting regulations to tighten supervision on the exportation proceeds of the products mentioned in Decree no. 235/2013 of the Industry and Foreign Trade Minister dated 18 April 2013.
- 40 -
• Issuing additional instructions to tighten supervision on import documents received on a collection basis in the name of the client. In such a case, the client should present to the bank a true copy of the original custom release application form bearing the original customs seal and including the name of the bank that implemented the operation.
• Amending and updating the regulations related to a bank's share in money
market funds and in fixed income funds and the amount of money to be invested in all of these funds.
• Setting the regulations for practising bank insurance activity.
• Setting a contingency plan for banks to maintain cash balances sufficient
to cover their deposit and debit operations for a period not less than 5 working days and to keep minimum cash reserves in each branch of the bank and in each ATM.
The CBE continued to work on developing the banking system, and
maintaining its soundness and stability by ensuring the application of international best practices by banks. Moreover, the recent successive crises have highlighted the importance of supporting the governance systems and internal control at banks and enhancing the role of the regulatory entities. Against this background, the CBE Board of Directors issued, on its session dated 5 July 2011, 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: 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 on risk management and internal control
systems;
- 41 -
Formulation of effective policies for salaries and remunerations and for the management of conflict of interests; and
The principle of transparency and disclosure of important financial and non-
financial information. During the period under review, 58 BoD members and 37 directors were
added to the register of banks pursuant to Article 43 of Law No. 88 of 2003 promulgating the Law of the Central Bank, the Banking Sector and Money and in compliance with the applicable fit and proper criteria.
In 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 9 banks were modified during the period under review.
Moreover, 56 new branches of 22 banks were added to the register of
banks in accordance with the regulations set by the CBE 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 light of the rules regulating the electronic payment services, 9 banks were licensed to offer some e-banking services during the period under review.
To organize dealing in the Forex market in Egypt, Forex dealers and
money transfer companies operating in Egypt were subjected to off-site supervision, according to the Law of the Central Bank, the Banking Sector and Money. In this respect, it is worthy to note that during the period under review, the CBE Governor issued Decision No. 77 for 2012 to give a license to a new exchange dealer company. Moreover, 21 branches of existing Forex dealers were registered, thus bringing their total number to 504 nationwide.
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. The total number of licensed shops amounted to 82 in the period under review. Also, the number of licensed shops in the free zones reached 27 shops at the end of the same period.
- 42 - The CBE allows banks to participate in the establishment of different
kinds of mutual funds. In this respect, 2 banks were allowed to proceed with the measures of establishing 2 new mutual funds. Moreover, in order to encourage individuals to save, banks in Egypt were allowed to issue saving systems of three years or more, with some privileges, to be able to raise their market interest rates above the short-term interest rates. As a result, banks were permitted to issue 19 new saving systems in local currency. They were also allowed to make some adjustments to the existing systems, with the aim of increasing the volume of medium- and long-term savings, to help banks finance production and industrial enterprises. During the period under review, the CBE approved on issuing 3 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. According to this system, a number of banks are allowed 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 license was renewed for 9 banks to practise the primary dealers activity in view of their compliance with the regulations issued by the CBE Board in its Decision dated 6 June 2002 and the regulations set for banks in order to be selected as primary dealers.
Concerning on-site supervision, it is worthy to note that the Supervision
Sector at the CBE made progress with its plan for inspection to ensure the robustness and soundness of banks' financial positions and guarantee the safety of depositors' funds.
On the other hand, the On-site Supervision Department continues to play
its supervisory role of monitoring banks compliance with the regulatory instructions issued by the CBE especially the instructions that ensure the repatriation of foreign investors' funds to abroad and those issued by the CBE to maintain the country's resources of foreign currencies.
- 43 -
2/2/3- Overview of the Aggregate Financial Position of Banks
The financial position of registered banks operating in Egypt augmented by LE 165.7 billion or 12.1 percent (against LE 78.8 billion or 6.2 percent) to LE 1.5 trillion at end of March 2013, exceeding as such twofold the increase in the previous corresponding period. More than half the increase was pronounced in the period January/March 2013, as banks' financial position accelerated by LE 90.7 billion or 6.3 percent.
Banks' Liabilities & the Relative Importance of their Components
(End of March)
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 20130
200
400
600
800
1000
1200
1400
1600LE bn
Equities Provisions Bonds & Long-term Loans Obligations to Banks in Egypt Obligations to Banks Abroad Total DepositsOther Liabilities Total Liabilities - Right Scale
On the liabilities side, the rise was a result of the growth of LE 120.8 billion or 11.8 percent in banks' deposits, to LE 1144.3 billion at end of March 2013. Furthermore, banks' equities scaled up by LE 14.7 billion or 15.8 percent to LE 107.6 billion, or 7.0 percent of banks' total assets. Banks' provisions also mounted by LE 6.5 billion to LE 60.6 billion, making up 11.3 percent of the lending and discount balances at end of March 2013. Increases were also seen in obligations to local banks by LE 5.2 billion or 27.2 percent; bonds and long-term loans by LE 2.2 billion or 8.1 percent; and other liabilities by LE 16.1 billion or 12.0 percent.
- 44 -
Growth Rate of Banks' Liabilities During
July/March (%)
10.9
4.3
4.1
40.3
12.0
8.1
140.3
9.8(1.8)
(60.5)(18.7)
2.2
1.3
11.8
12.0
1.0
40.8
6.3Capital
Reserves
Provisions
Bonds & Long-term Loans
Obligations to Banks Abroad
Obligations to the CBE
Obligations to Banks in Egypt
Total Deposits
Other Liabilities
2011/2012 2012/2013
Banks' Assets & the Relative Importance of their Components (End of March)
0%
20%
40%
60%
80%
100%
2009 2010 2011 2012 20130
200
400
600
800
1000
1200
1400
1600LE bn
Cash Securities & Investments Balances at Banks in EgyptBalances with Banks Abroad Loan & Discount Balances Other AssetsTotal Assets - Right Scale
On the assets side, most of the increase was concentrated in banks' investments in securities and bills that augmented by LE 74.2 billion or 13.4 percent, to LE 629.5 billion or 41.1 percent of the aggregate financial position at end of March 2013. Similarly, lending and discount balances rose by LE 30.0 billion or 5.9 percent; balances with local banks by LE 17.4 billion; cash by LE 4.3 billion; balances with banks abroad by LE 4.8 billion; and other assets by LE 35.0 billion.
- 45 -
Growth Rate of Banks' Assets July/March (%)
(6.1)
10.3
(14.3)
4.6
29.7
13.4
6.3
7.52.7
33.6
(9.2)18.5
32.0
5.9
Cash
Securities & Investments
Balances with Banks Abroad
Balances at the CBE
Balances at Banks in Egypt
Loan & Discount Balances
Other Assets
2011/2012 2012/2013
The increase in banking investments in securities and bills was mostly in
treasury bills (by LE 42.4 billion) and government bonds (by LE 27.1 billion). Banks' investments in corporate equities went up by LE 4.0 billion and in foreign securities by LE 1.6 billion worth. Conversely, their investments in non-government bonds retreated by LE 0.9 billion.
Relative Structure of Banks' Portfolio Investment
5.71.1
51.2
38.5
3.5
51.9
0.85.7
38.3
3.30
10
20
30
40
50
60
Treasury Bills Gov. Bonds Non-gov.Bonds
Corp. Equities ForeignSecurities
% June 2012March 2013
- 46 - 2/2/4/- Interbank Transactions
2/2/4/1- Transactions with Banks Abroad
In July/March 2012/2013, transactions of local banks with
correspondents abroad unfolded a rise in their net credit balances with banks abroad by LE 4.7 billion worth or 7.6 percent (against a decline of LE 10.9 billion worth or 13.5 percent in the previous corresponding period).The increase reflected the pickup in both their balances at banks abroad and their obligations thereto (by LE 4.8 billion worth and LE 0.1 billion worth, in order).
Transactions with Banks Abroad
(LE mn) Change in July/March
End of 2011/2012 2012/2013
Value % Value % Net Position 80912 69963 61113 65763 (10949) (13.5) 4650 7.6 Balances with banks abroad 96080 82293 75905 80706 (13787) (14.3) 4801 6.3
Obligations to banks abroad 15168 12330 14792 14943 (2838) (18.7) 151 1.0
2/2/4/2 - Interbank Transactions in Egypt
The volume of transactions among banks in Egypt in the interbank money
market, in terms of deposits, increased by LE 1.3 billion or 7.5 percent in the reporting period (against a rise of LE 0.5 billion or 2.7 percent in the period of comparison), bringing total deposits to LE 18.5 billion at end of March 2013. The rise was an outcome of the surge in LE deposits by LE 1.1 billion and in foreign currency deposits by LE 0.2 billion worth.
- 47 -
Deposits in The Interbank Money Market
(End of)
9.310.3
7.9 8.2
0.0
2.0
4.0
6.0
8.0
10.0
12.0
June 2012 March 2013
LE bn
Local Currency Foreign Currencies
2/2/5 - Deposits
Deposits at banks grew during the period under review by more than
threefold the increase in the period of comparison. In figures, they rose by LE 120.8 billion or 11.8 percent (against LE 39.2 billion or 4.1 percent), to LE 1144.3 billion at end of March 2013. Local currency deposits climbed by LE 86.3 billion or 11.1 percent, to LE 864.1 billion or 75.5 percent of total deposits at end of March 2013. Similarly, foreign currency deposits augmented by LE 34.5 billion worth or 14.0 percent, to LE 280.2 billion worth at end of March 2013.
Growth in Deposits by Currency During July/March
9.2
34.5
86.3
30.0
0102030405060708090
100
2011/2012 2012/2013
LE bn
Local Currency Foreign Currencies
- 48 -
Deposits at Banks by Sector (LE mn)
Local Currency Foreign Currencies End of June
2012 March 2013
June 2012
March 2013
Total 777806 864118 245711 280222 Government sector 58930 63827 55731 55996 Public business sector 24843 23269 8812 11582 Private business sector 92697 116875 64496 77921 Household sector 597459 656238 112859 130502 External sector 3877 3909 3813 4221
The growth in LE deposits of the household sector represented more than
two thirds of the increase in these deposits. Its deposits surged by LE 58.8 billion or 9.8 percent, to LE 656.2 billion or 75.9 percent of total LE deposits at end of March 2013. Moreover, deposits of the private business sector scaled up by LE 24.2 billion or 26.1 percent, and those of the government sector by LE 4.9 billion or 8.3 percent. However, deposits of the public business sector retreated by LE 1.6 billion or 6.3 percent.
The increase in foreign currency deposits (LE 34.5 billion worth) was an
outcome of the surge in the deposits of the following sectors: the household sector by LE 17.6 billion worth or 15.6 percent, the private business sector by LE 13.4 billion worth or 20.8 percent, the public business sector by LE 2.8 billion worth, the external sector by LE 0.4 billion worth, and the government sector by LE 0.3 billion worth.
Change in Deposits by Sector
July/March
(30)(20)(10)
010203040
2011/2012 2012/2013 2011/2012 2012/2013
Local Currency Foreign Currencies%
Government Sector Public Business Sector Private Business SectorHousehold Sector External Sector
- 49 -
2/2/6 -Lending Activity
During the period under review, banks expanded their lending activities, as lending and discount balances increased by LE 30.0 billion or 5.9 percent (against LE 21.7 billion or 4.6 percent), to LE 536.7 billion or 46.9 percent of total deposits with banks at end of March 2013. Notably, the increase realized during the reporting period was mainly in the period Jan./March 2013, in which lending and discount balances rose by LE 19.9 billion or 3.9 percent. The increase was attributable to the surge in LE lending and discount balances by LE 15.2 billion or 4.2 percent to LE 379.3 billion at end of March 2013, and to the rise in those in foreign currencies by LE 14.8 billion worth or 10.4 percent to LE 157.4 billion worth.
Change in Bank Loans by Sector
during July/March (LE mn)
2011/2012 2012/2013 Local
Currency Foreign
Currencies Local
Currency Foreign
Currencies Total 26510 (4771) 15186 14826 Government sector (2313) (3169) (2748) 3977 Public business sector 7558 693 3053 389 Private business sector 10766 (412) 3251 13589 Household sector 10815 (780) 12063 (353) External sector (316) (1103) (433) (2776)
The LE lending and discount balances extended to the household sector
rose by LE 12.1 billion or 11.0 percent (compared with LE 10.8 billion or 11.3 percent in the previous corresponding period) to LE 121.8 billion at end of March 2013. Moreover, loans to the private business sector went up by LE 3.2 billion or 1.6 percent (against LE 10.8 billion or 5.7 percent), to LE 210.6 billion or 55.5 percent of the lending and discount balances in local currency at end of March 2013. Similarly, loans to the public business sector mounted by LE 3.0 billion or 9.7 percent (against LE 7.6 billion or 30.8 percent). However, such a rise was curbed by the drop in loans to the government sector by LE 2.7 billion or 18.8 percent and to the external sector by LE 0.4 billion.
The private business sector accounted for the bulk of the increase in the
lending and discount balances in foreign currencies (91.7 percent). Loans extended thereto scaled up by LE 13.6 billion worth or 14.0 percent. In addition, loans to the government sector augmented by LE 4.0 billion worth or 21.0
- 50 - percent, and to the public business sector by LE 0.4 billion worth. Such a rise was mitigated by the fall in loans extended to the external and the household sectors by LE 2.8 billion worth and LE 0.4 billion worth, in order.
The relative distribution of loans by economic activity indicates that the
manufacturing sector was the major recipient, with a share of 37.0 percent (in local and foreign currencies) at end of March 2013. The services sector came next (26.0 percent), followed by the unclassified sectors including the household (25.6 percent), then trade (10.1 percent), and agriculture (only 1.3 percent).
Credit Facilities by Economic Activity At End of March 2013
0306090
120150180210
Agriculture Manufacturing Trade Services Unclassified
LE bn
Foreign Currencies
Local Currency
Loans and advances (excluding discounts), provided by banks by
maturity, registered LE 532.6 billion at end of March 2013, with an increase of LE 29.4 billion or 5.8 percent in the period under review. The increase was due to the growth in long-term loans (more than one year) by LE 16.2 billion or 6.0 percent (owing to the increase in both LE and foreign currency loans by LE 12.0 billion and LE 4.2 billion worth, respectively). Add to this the rise in short-term loans (one year or less) by LE 13.3 billion or 5.7 percent due to the rise in foreign currency loans by LE 10.3 billion worth, and those in local currency by LE 3.0 billion.
Loans & Advances by Banks Excluding Discounts (End of)
166.5 169.5195.3 207.3
67.1 77.4 74.3 78.5
0306090
120150180210
June 2012 March 2013 June 2012 March 2013
One Year or Less LE bn
Local Currency Foreign Currencies
- 51 -
3-Non-Banking Financial Sector∗ 3/1- Regulatory and Legislative Developments
Within the framework of developing the EGX regulatory and supervisory
measures, the EFSA issued during Q3 (Jan./March) of 2012/2013 the following two decisions:
• Decision no. 8 of 2013 that added a paragraph to Article 12 bis (1) of the
rules of listing and de-listing of securities on the Egyptian Exchange related to setting the maximum limit of issuing GDRs by any company whose shares are listed on the Exchange. The new paragraph states that "issued shares in the form of GDRs shall not exceed one third of the issued capital”.
• Decision no. 9 of 2013 concerning the regulations for brokerage
companies and portfolio management companies regarding exchanging GDRs with securities listed on the Egyptian Exchange. The main articles of this Decision were as follows:
- Brokerage Companies shall obtain EFSA’s approval regarding
exchanging GDRs with listed securities on the Egyptian Exchange before conducting any transaction for any client. To obtain this approval, the issued and paid-up capital of a brokerage company must exceed LE 20 million. Moreover, its average solvency ratio shall not be less than 10 percent of the obligations during the six months preceding the submission of the request for approval. The brokerage company shall raise its mandatory insurance to cover the risks of the new activity and establish a department specialized in trading in GDRs. The company shall also be obliged to apply the EFSA's and CBE's AML/CFT regulations.
- The regulations also covered the requisite that the client must review the
risk statement model attached to the brokerage contract. The brokerage company shall operate via a foreign broker of securities licensed by the regulatory authority he is subject to. Also, brokerage companies are required to submit data and reports related to dealings on GDRs to EGX. On the other hand, the EFSA prohibited those companies from dealing in margin trading, short selling or any other system not approved by
__________________ * Source: EFSA, and EGX's monthly reports.
- 52 -
The competent Egyptian authorities. Cash settlements shall be executed in accordance with the rules and regulations issued by the CBE regarding dealing with foreign exchange and transfers abroad.
• In addition, the Egyptian Stock Exchange has signed an agreement with
New York Stock Exchange (NYSE Euronext) in Jan. 2013, allowing for the first time the listing of an EGX 30 based futures contract. Ideas were also discussed to soon begin listing and trading stock options on the same index.
• Within the framework of the periodical semi-annual review of the listed
companies in the price and sector indices, the Stock Exchange announced that a number of these companies have been changed as of the 1st of February 2013.
3/2- Stock Market
In July/March 2012/2013, all price indices of the EGX increased. Its
benchmark index (EGX 30) rose by 8.3 percent, to 5098.8 points at end of March 2013 (against 4708.6 points at end of June 2012). Likewise, EGX 20 Capped increased by 7.4 percent recording 5856.5 points at end of March 2013 (against 5452.0 points). EGX 70 moved up, as well, by 4.6 percent to 441.5 points (against 422.0 points), and so did EGX 100 by 1.1 percent to 737.3 points (against 729.5 points).
The Benchmark EGX 30 Index
50750
1450215028503550425049505650635070507750
June
201
1Ju
lyAug.
Sept.
Oct. Nov
. Dec
.
Jan.
2012
Feb.
Mar. Apr.May.
June Ju
lyAug
.Sept.
Oct.
Nov.
Dec
.
Jan.
2013
Feb.Mar.
Point
- 53 - Sectoral Indicators
In July/March 2012/13, most of the sectoral indicators increased. The food and beverages index recorded the highest growth, with a rise of 40.4 percent, followed by basic resources (34.1 percent) and healthcare and pharmaceuticals (30.9 percent). Financial services (excluding banks) came last with a growth rate of only 0.3 percent. On the other hand, the tourism and leisure sector witnessed the highest decrease (down by 17.3 percent).
Sector
Sectoral Indicator at End of June 2012
Sectoral Indicator at End of
March 2013
Change in
July/March 2012/13 (%)
Food and beverages 660.2 927.2 40.4 Basic resources 319.5 428.3 34.1 Healthcare and pharmaceuticals 1146.5 1501.3 30.9 Communications 386.2 501.6 29.9 Personal and household products 378.6 470.7 24.3 Banks 1236.1 1459.4 18.1 Chemicals 701.4 712.1 1.5 Financial services (exc. banks) 418.5 419.6 0.3 Real estate 669.3 662.7 -1.0 Services, industrial goods and cars 927.2 904.2 -2.5 Construction and building materials 1354.0 1316.2 -2.8 Tourism and leisure 245.0 202.6 -17.3
As for the primary market, the number of new issues approved by
EFSA during July/March 2012/2013 reached 2351, at a total value of LE 34.4 billion (against 2344 issues, at a total value of LE 29.0 billion in the corresponding period a year earlier). Issues for new businesses reached 1684 in number (71.6 percent of total issues), at a value of LE 5.1 billion. The number of issues for capital increases reached 667, with a total value of LE 29.2 billion (84.9 percent of total issues).
The listing activity on the EGX showed that the number of listed
companies retreated to 211 at end of March 2013 (from 212 at end of June 2012). Meanwhile, the nominal capital of these companies mounted by 0.8 percent to LE 151.3 billion (from LE 150.1 billion). Also, their market capitalization climbed by 4.5 percent to LE 355.0 billion (against LE 339.8 billion), on the back of the rise in the prices of most shares traded on the EGX.
- 54 - The value of issued and listed bonds surged by LE 41.2 billion or 14.5
percent in July/March 2012/2013, posting LE 326.6 billion at end of March 2013 (against LE 285.3 billion at end of June 2012). This was attributed to the rise of LE 42.3 billion in the value of Egyptian treasury bonds (primary dealers), to LE 312.8 billion or 95.8 percent of the total value of listed bonds at end of March 2013. In the meantime, corporate bonds fell by LE 0.8 billion and securitization bonds by LE 0.3 billion.
As for the secondary market, the three indicators of trading (number of
transactions, number of securities and their value) showed increases. In detail, the number of transactions moved up by 271 thousand or 6.3 percent to 4577 thousand during July/March 2012/2013, and so did the number of traded securities (shares and bonds) by 10803 million or 64.2 percent compared with the corresponding period, posting 27622 million papers. Their value increased, as well, by LE 47.0 billion or 48.7 percent, to LE 143.3 billion. Share transactions accounted for the bulk of trading on the EGX representing 80.6 percent in the period under review (against 83.7 percent in the previous corresponding period). Trading in bonds made up the remaining 19.4 percent of the total (against 16.3 percent).
Trading in Securities
July/March 2011/12 2012/13 No. of Transactions (000s) 4306 4577 A- Shares, bonds and mutual funds’ certificates (listed) 4245 4523 B- Shares, bonds and mutual funds’ certificates (unlisted) 47 24 C- Small and medium enterprises market (NILEX)* 14 30 No. of Traded Securities (mn) 16819 27622 A- Shares, bonds and mutual funds’ certificates (listed) 15912 26512 B- Shares, bonds and mutual funds’ certificates (unlisted) 870 1029 C- Small and medium enterprises market (NILEX)* 37 81 Value of Transactions (LE mn) 96345 143296 A- Shares, bonds and mutual funds’ certificates (listed) 83396 128007 B- Shares, bonds and mutual funds’ certificates (unlisted) 12803 15091 C- Small and medium enterprises market (NILEX)* 146 198
Source: EFSA and monthly reports of the EGX. * Trading on NILEX started on June 3, 2010.
- 55 - 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 billion at end of March 2013. Traded securities posted 81 million papers, through 30 thousand transactions, with a total value of LE 198 million during the period under review.
Investors' Transactions
Foreigners' transactions on EGX stepped up by 88.4 percent during
July/March 2012/2013 compared with the corresponding period of the preceding year, scoring LE 77.1 billion (against LE 40.9 billion). Their transactions resulted in net purchases of LE 1.4 billion (against net purchases of LE 377 million in the period of comparison).
Egyptians' trading on EGX accounted for 61 percent of total transactions
during July/March 2012/2013. On the other hand, dealings of non-Arab foreigners represented 23.0 percent, while those of Arab investors made up 16.0 percent.
Foreign Investors' Transactions during July/March
0
25
50
75
2011/2012 2012/20130
500
1000
1500
2000
2500
3000
3500Purchases
Sales
Net (right-axis)
LE bn LE mn
LE 377 mn
LE 1.4 bn
- 56 -
3/3- Mutual Funds
The number of mutual funds reached 88 at end of March 2013 (86 open-end and 2 close-end), against 82 funds at end of March 2012 (80 open-end and 2 close-end).
Egyptian, Foreign & Arab Investors’ Transactions on the Stock Exchange during July/March
2012/2013
Arabs 16%
Foreigners (Excl. Arabs)
23%
Egyptians61%
- 57 -
4- Public Finance and Domestic Public Debt 4/1- Consolidated Fiscal Operations of the General Government
According to the follow-up data on the actual execution of the state budget
during July/March 2012/2013, the overall deficit registered LE 175.9 billion, up by 55.5 percent as compared with the same period a year earlier. This reflects the 23.1 percent hike in total expenditures, exceeding as such the rise in total revenues of only 5.4 percent.
Hereunder is the analysis of the actual data released by the Ministry of
Finance on the fiscal operations of the state budget and the general government during the first nine months of FY 2012/2013 in comparison with the actual execution in the same period a year earlier. 4/1/1- Budget Sector
According to the actual data of the Ministry of Finance on the fiscal operations of the state budget (administrative system - local administration - service authorities) during July/March 2012/2013, total collected revenues rose by LE 10.6 billion or 5.4 percent over the previous corresponding period, to LE 208.2 billion, or 12.0 percent of GDP, covering as such 54.4 percent of total expenditures. Likewise, total expenditures surged by LE 71.7 billion or 23.1 percent to LE 382.5 billion or 22.0 percent of GDP. Consequently, the overall budget deficit widened by LE 62.8 billion to LE 175.9 billion or 10.1 percent of GDP (against LE 113.1 billion or 7.2 percent in the period of comparison).
Ratio of Expenditures, Revenues & Overall Deficit/GDP(July/March)
0
5
10
15
20
25
2009/2010 2010/2011 2011/2012 2012/2013
Revenues Expenditures Overall deficit
%
- 58 -
Public revenues analysis shows that the LE 10.6 billion rise was attri-buted to the pickup in tax revenues by LE 23.7 billion or 17.9 percent to LE 156.0 billion or 75 percent of total public revenues (against 67.0 percent). Other contributing factors were the decline in grants by LE 5.7 billion to only LE 3.2 billion or 1.5 percent (against 4.5 percent); and the fall in other revenues by LE 7.4 billion to LE 49.0 billion or 23.5 percent (against 28.5 percent).
As for tax revenues, 80.8 percent of the increase (LE 23.7 billion) was
concentrated in the following items: (1) taxes on goods and services that rose by LE 10.6 billion or 19.1 percent, as a reflection of the increase in private consumption spending, which is still the main driver of economic growth since the outbreak of the Jan. revolution in 2011 up till now; and (2) taxes on income and profits that accelerated by LE 8.6 billion or 15.9 percent due to the increase in all types of taxes included under this item (excluding those collected from the EGPC). Taxes collected from the CBE came first, representing 96.2 percent of the total increase in taxes on income and profits, followed by taxes payable by individuals (43.0 percent).
In addition, taxes on property grew by LE 2.2 billion or 22.9 percent to
LE 11.9 billion (5.7 percent of total public revenues). Moreover, taxes on international trade augmented by LE 1.3 billion or 12.2 percent to LE 12.1 billion (5.8 percent of total revenues).
69.775.8
67.074.9
20.214.8
14.221.6
01020304050607080
2009/2010 2010/2011 2011/2012 2012/2013
Tax Revenues Property Income
Ratio of Tax Revenues & Property Income / Total Revenues(July/March)%
- 59 -
Other revenues declined during the period under review because of the fall in profit surplus transfers by LE 13.1 billion or 30.6 percent, due to the lower transfers from all entities included under this item (excluding the Suez Canal). Transfers from the EGPC represented 49.3 percent of the total decline, followed by transfers from the CBE (34.4 percent), then transfers from companies (20.9 percent).
Analysis of expenditures indicated that 90.1 percent of the increase (LE
71.7 billion) was concentrated in three main items. Firstly, interest payments on domestic and external debts rose by LE 23.5 billion (32.8 percent of the increase in total expenditures) or 30.1 percent totaling LE 101.5 billion or 26.5 percent of total expenditures and absorbing 48.8 percent of total revenues. The sustainable increase in that item stemmed from the rise in the interest rate on 91-day bills and 182-day bills, on the one hand, and the increase in the bills issued to finance part of the widening budget deficit, in the wake of the Revolution up till now, on the other hand.
Secondly, wages and compensations of employees inched up by LE 19.8
billion (27.7 percent of the increase in total expenditures) or 23.9 percent to LE 102.7 billion (26.8 percent of total public expenditures, and 49.3 percent of total revenues). The rise in this item was due to the increase in remunerations for workers in the state budget administrations, the costs of the annual increase that was granted to all civil servants as of July 2012, in addition to the permanent appointment of temporary laborers. This reflects the high burden of the state budget, where wages constitute more than one-quarter of total expenditures. This highlights the role of the private sector in development and in creating more job opportunities in the coming phase.
Thirdly, subsidies, grants, and social benefits augmented by LE 21.3
billion (29.7 percent of the increase in total expenditures) or 22.3 percent to LE 116.7 billion (or 30.5 percent of total expenditures). The rise in this item was a chief outcome of the increase in subsidy costs by LE 12.9 billion (18.1 percent of the increase in total expenditures) to LE 98.4 billion (25.7 percent of total expenditures), and the pickup in social benefits (especially the contribution to social insurance funds) by LE 9.6 billion. As for subsidies, 75.2 percent of the total increase (LE 12.9 billion) was concentrated in subsidy allocations for oil commodities that amounted to LE 72.2 billion, followed by supply commodities that inched up by LE 2.5 billion to LE 18.9 billion. This comes within the framework of the government's move towards supporting low income brackets and alleviating their burdens amid the current events in Egypt.
- 60 -
Moreover, implemented investments went up by LE 2.6 billion or 13.9 percent in the period under review, as compared with the same period a year earlier, reaching LE 21.1 billion. This indicates the continuous commitment of the government to implement the investments included under the economic and social development plan despite the events in Egypt, and according to the priorities, necessities and available resources of the State during the FY.
18192021222324252627282930
2009/2010 2010/2011 2011/2012 2012/2013
Paid Interest Subsidies Wages
%Ratio of Subsidies, Paid Interest & Wages / Total Expenditures
(July/March)
Against this background, the overall budget deficit surged by LE 62.8
billion to LE 175.9 billion or 10.1 percent of GDP (against LE 113.1 billion or 7.2 percent of GDP). Local financing sources were mainly used to finance the budget deficit. In addition, some various external and local 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, revenues would total LE 244.6 billion (14.1 percent of GDP), up by 6.3 percent as compared with the previous corresponding period.
- 61 -
Execution of the Consolidated Fiscal Operations of the General Government (Budget Sector, NIB and SIFs)
(Total Revenues) (LE bn)
July/March 2012/2013
Budget Sector
Relative Structure
Execution Ratio/Total
Estimate for the Year
Budget Sector, NIB & SIFs
Relative Structure
Execution Ratio/Total
Estimate for the Year
Total Revenues 208.2 100 52.6 244.6 100.0 54.7 Tax Revenues 156.0 75.0 58.5 156.0 63.8 58.5
•Taxes on Income and Profits 62.9 30.2 51.7 62.9 25.7 51.7
From EGPC 15.8 7.6 34.4 15.8 6.5 34.4 From SCA 8.9 4.3 63.1 8.9 3.6 63.1 From CBE 8.3 4.0 8.3 3.4 Other entities 12.0 5.7 37.9 12.0 4.9 37.9 Payable by individuals 17.9 8.6 59.7 17.9 7.3 59.7
• Taxes on Property 11.9 5.7 61.4 11.9 4.9 61.4 • Taxes on Goods &
Services 65.9 31.7 65.4 65.9 26.9 65.4 • Taxes on
International Trade (customs) 12.1 5.8 58.2 12.1 5.0 58.2
• Other Taxes 3.2 1.6 73.8 3.2 1.3 73.8 Grants 3.2 1.5 32.9 3.2 1.3 32.9 Other Revenues 49.0 23.5 41.2 85.4 34.9 50.0
Property Income 29.6 14.2 37.9 35.5 14.5 40.2 Selling Proceeds of Goods and Services 11.4 5.5 66.2 11.4 4.6 66.2 Financial Investments 2.3 1.1 22.3 2.3 1.0 22.3 Other 5.7 2.7 43.0 36.2 14.8 65.7
Source: Ministry of Finance. Percentages are calculated in terms of LE million.
Total expenditures also accelerated to LE 423.7 billion (24.4 percent of
GDP), up by 21.4 percent as compared with the previous corresponding period.
- 62 -
Execution of the Consolidated Fiscal Operations of the General Government (Budget Sector, NIB and SIFs)
(Total Expenditures) (LE bn)
July/March 2012/2013
Budget Sector
Relative Structure
Execution Ratio/Total
Estimate for the Year
Budget Sector, NIB & SIFs
Relative Structure
Execution Ratio/Total
Estimate for the Year
Total Expenditures 382.5 100.0 65.3 423.7 100.0 68.5 Wages & Compensations of Employees 102.7 26.8 71.8 104.2 24.6 71.9 Purchases of Goods & Services 16.1 4.2 55.6 16.3 3.8 55.7 Interest 101.5 26.5 73.2 94.0 22.2 75.8 Subsidies, Grants & Social Benefits 116.7 30.6 63.8 163.5 38.6 72.0
Subsidies 98.4 25.7 68.8 98.4 23.2 68.8
Grants 2.7 0.7 43.9 2.7 0.6 43.9
Social Benefits 15.3 4.1 54.0 62.1 14.7 85.6 Others 0.3 0.1 5.8 0.3 0.1 5.8 Other Expenditures 24.4 6.4 70.6 24.5 5.8 70.5 Purchases of Non-Financial Assets (Investments) 21.1 5.5 36.3 21.2 5.0 36.3 Source: Ministry of Finance. Percentages are calculated in terms of LE million.
The overall deficit of the consolidated fiscal operations of the general
government reached LE 181.2 billion in July/March 2012/2013 (10.4 percent of GDP), thus exceeding the overall deficit estimated for the fiscal year (LE 171.4 billion) by 5.7 percent. This deficit was financed by local sources (banking and non-banking). Also, some various external and local repayments were made.
- 63 -
Execution of the Consolidated Fiscal Operations of the General Government (Budget Sector, NIB and SIFs)
(Cash and Overall Deficit/Surplus & Financing Sources)
(LE bn) July/March 2012/2013
Budget Sector
Relative Structure
Execution Ratio/Total
Estimate for the Year
Budget Sector,
NIB & SIFs
Relative Structure
Execution Ratio/Total
Estimate for the Year
Total Revenues 208.2 52.6 244.6 54.7 Total Expenditures 382.5 65.3 423.7 68.5 Cash Deficit 174.3 91.5 179.1 104.9 Net Acquisition of
Financial assets 1.6 -29.4 2.1 310.3 Overall Deficit 175.9 94.9 181.2 105.7 Finance Sources 175.9 100.0 181.2 100.0 Domestic Finance 220.8 125.5 202.3 111.7 Banking Finance 172.7 98.2 172.9 95.4 Non-Banking Finance 48.1 27.3 29.4 16.3 External Borrowings -2.3 -1.3 -2.3 -1.3 Other -11.3 -6.4 12.5 6.9 Revaluation Differences 8.8 5.0 8.8 4.8 The Difference between the TBs Face & Present Value -4.9 -2.8 -4.9 -2.7
Unclassified -35.2 -20.0 -35.2 -19.4 Source: Ministry of Finance. Percentages are calculated in terms of LE million.
- 64 -
4/2- Domestic Public Debt
At end of March 2013, total domestic public debt∗ amounted to LE 1460.4 billion, or 82.2 percent of GDP at current market prices, up by LE 222.3 billion or 18.0 percent during July/March 2012/2013.
1211.2
63.7
252.6
-67.1
1460.4
-200 0 200 400 600 800 1000 1200 1400 1600
Net Domestic Debt ofThe Government
Net Debt of EconomicAuthorities
NIB Debt (Net)
Intra-Debt
Gross Domestic Debt
Gross Domestic Debt at End of March 2013 (LE bn)
4/2/1- Debt of the Government (Net)
Net government domestic debt expanded by LE 220.7 billion or 22.3 percent in July/March 2012/2013 to register LE 1211.2 billion (68.1 percent of GDP) at end of March 2013. The rise was a result of the LE 103.2 billion increase in the balances of treasury bonds and bills, and the net debit position of the government at the banking system of LE 103.7 billion (because of the rise in government loans and deposits by LE 114.9 billion and LE 11.2 billion, respectively). Add to this the increase in government borrowing from other local entities by LE 13.3 billion and the rise of the issued Egyptian US Dollar certificates by LE 1.0 billion. In the meantime, credit facilities from the SIFs decreased by LE 0.5 billion.
_____________________ * Its balance equals the sum of net government debt, public economic authorities' debt and that of the National
Investment Bank (NIB), minus intra-debts of public economic authorities and the government to the NIB.
- 65 -
Domestic Debt of the Government (Net) (LE bn)
June 2012 March 2013
Value % Value %
Change + (-)
July/March2012/2013
Government Domestic Debt (Net) 990.5 100.0 1211.2 100.0 220.7 - Balances of Bonds and Bills* 1078.2 108.9 1181.4 97.5 103.2
•1 Bonds and notes, of which: 669.6 67.6 722.0 59.6 52.4 Tradable on exchanges 390.8 39.5 316.9 26.2 (73.9)
•2 Treasury bills 408.6 41.3 459.4 37.9 50.8 - Borrowing from Other Entities 13.0 1.3 26.3 2.2 13.3 - Credit Facilities from SIFs 1.7 0.2 1.2 0.1 (0.5) - The Egyptian US Dollar Certificate 0.2 0.0 1.2 0.1 1.0 - Net Balances at the Banking System -102.6 -10.4 1.1 0.1 103.7
•3 Credit facilities 62.2 6.3 177.1 14.6 114.9 •4 Deposits (-) 164.8 16.6 176.0 14.5 11.2
Net Government Domestic Debt/GDP (%) 64.2 68.1
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 103.2 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 52.4 billion, to LE 722.0 billion at end of March 2013, as a result of:
1- The LE 42.3 billion rise in the balance of Egyptian treasury bonds in the reporting period, represented in: - The issuance of the 77th tranche of three-year bonds on 1 January 2013,
at a value of LE 0.5 billion and an annual interest rate of 14.350 percent. Afterwards, the value of this tranche was increased by LE 4.5 billion (LE 1.5 billion in January, LE 2.5 billion in February and LE 0.5 billion in March 2013) on the same conditions of issuance, bringing its total value to LE 5.0 billion.
- The issuance of the 78th tranche of ten-year bonds on 1 January 2013, at a value of LE 0.5 billion, and an annual interest rate of 16.300 percent. The value of this tranche was then increased by LE 3.5 billion (LE 1.5
- 66 -
billion in January, LE 1.5 billion in February and LE 0.5 billion in March 2013) on the same conditions of issuance, bringing its total value to LE 4.0 billion.
- The increase of the 75th tranche of five-year bonds issued on 13
November 2012 at an annual interest rate of 13.650 percent, by LE 3.5 billion (LE 1.5 billion in February and LE 2.0 billion in March 2013) on the same conditions of issuance, bringing its total value to LE 6.0 billion.
- The increase of the 76th tranche of seven-year bonds issued on 13
November 2012 at an annual interest rate of 14.170 percent, by LE 2.0 billion (LE 1.0 billion in February and LE 1.0 billion in March 2013) on the same conditions of issuance, bringing its total value to LE 3.5 billion.
- The issuance of Egyptian treasury bonds at a value of LE 53.8 billion in
July/December 2012/2013.
- The redemption of LE 26.0 billion of Egyptian treasury bonds (the 43rd tranche on 12 August 2012 at a value of LE 6.0 billion, the 18th tranche on 20 September 2012 at a value of LE 6.0 billion, the 49th tranche at a value of LE 8.0 billion and the 23rd tranche at a value of LE 6.0 billion).
2- The increase in the balance of SIFs bonds by LE 15.5 billion, as a result of
issuing new bonds on 1/7/2012 (representing part of SIFs’ claims on the Ministry of Finance).
3- The government's commitment to repay the debt amounting to LE 2.7
billion to the New Urban Communities Authority on behalf of Barwa Real Estate Company Q.S.C, against receiving this amount in cash during July/December 2012/2013.
4- The increase in the balance of bonds floated abroad in US dollar by LE 0.2
billion worth. 5- The decrease in the balance of LE bonds floated abroad by LE 4.3 billion,
after the redemption of LE bonds in July 2012. 6- The redemption of LE 4.0 billion of bonds issued in local currency at
public sector banks on 31 March 2013.
- 67 - B- The rise of the outstanding balance of treasury bills by LE 50.8 billion at end
of March 2013, to LE 459.4 billion, as a result of:
- The increase in the balance of TBs in euro issued during July/December 2012/2013 to LE 10.0 billion worth at end of March 2013 due to the change in exchange rate.
- The increase of LE 8.1 billion worth in the outstanding balance of public treasury bills in US dollar, bringing their balance to LE 43.3 billion worth at end of March 2013 (against LE 35.2 billion worth at end of June 2012).
- The LE 32.7 billion rise in the outstanding balance of public treasury bills,
issued in Egyptian pound, driving up the balance of these bills to LE 406.1 billion at end of March 2013, against LE 373.4 billion at end of June 2012.
Net Domestic Debt of Government / GDP
-300.0-100.0100.0300.0500.0700.0900.0
1100.01300.0
March 2012 June 2012 March 2013 0.0
10.0
20.030.0
40.0
50.0
60.0
70.0
Treasury BillsBonds & Other Credit FacilitiesNet Government Balances with the Banking SystemRatio of Government Debt /GDP
%LE bn
Net
Dom
estic
Deb
t of G
over
nmen
t/ G
DP
4/2/2- Debt of Public Economic Authorities (Net) In July/March 2012/2013, debt of public economic authorities (net) scaled up by LE 0.6 billion to LE 63.7 billion at end of March 2013. The rise was a result of the increase in their net borrowing from the NIB by LE 1.6 billion and the retreat of LE 1.0 billion in their borrowing from the banking system (mainly due to the rise of LE 1.3 billion in their deposits and of LE 0.3 billion in their claims).
- 68 -
4/2/3 - Debt of the NIB (Net)
Net debt of NIB (including intra-debt) mounted by LE 1.6 billion during July/March 2012/2013, to LE 252.6 billion at end of March 2013. The rise reflected the expansion in total invested resources in the NIB by LE 0.5 billion to LE 254.1 billion at end of March 2013, and the retreat in its deposits with the banking system by LE 1.1 billion.
4/2/4- Intra-Debt
The intra-debt of public economic authorities and the government to the
NIB amounted to LE 67.1 billion at end of March 2013 (against LE 66.5 billion at end of June 2012). To elaborate, loans granted by the NIB to these authorities accounted for LE 54.3 billion, with an increase of LE 1.6 billion during July/March 2012/2013. The NIB's investments in government securities (bills and bonds) registered LE 12.8 billion, down by LE 1.1 billion in the said period.
Proceeds of Investment
Certificates & Accumulated Interest 108.7
Post Office Saving Account
78.8
Dollar Development
Bonds & Others 3.8
Social Insurance Funds 62.8
Resources of the NIB at End of March 2013
(LE bn)
Loans to Holding
Companies & Affiliate Units, Concessional
Lending & Others 185.5
Deposits with the Banking
System 1.5
Investment in Treasury Bills & Bonds 12.8
Loans to Economic
Authorities 54.3
Uses of the NIB at End of March 2013
(LE bn)
- 69 -
5- External Transactions
5/1- Foreign Exchange Market and NIRs
Out of its keenness to enhance the efficiency of the forex market, the CBE launched a new mechanism which complements and supports the dollar interbank system. Via this mechanism, the CBE offers periodic FX auctions for banks to purchase and sell the US dollar. This mechanism has been applied as of December 30, 2012, with the aim of regulating the forex market and rationalizing the use of NIRs, after reaching critically low levels. In addition, the CBE issued a number of decisions conducive to bolstering the confidence of investors (Egyptians and foreigners). On February 4, 2013, the CBE issued a decision, allowing Egyptian persons, who transfer their savings from their accounts abroad to one of the banks in Egypt, to retransfer the same amount to abroad. Also, on 13 March 2013, the CBE decided to reactivate the foreign investor repatriation mechanism and the foreign investment fund. Moreover, the CBE decided to develop and expand this mechanism to cover treasury bills and bonds in addition to the stocks listed on the Egyptian Exchange.
The weighted average of the US dollar interbank rate posted LE 6.7931 at end of March 2013 (against LE 6.0590 at end of June 2012), with a 10.8 percent drop in the value of the Egyptian pound. While the present Economic Review was under preparation, the Egyptian pound depreciated further (13.1 percent below the end of June 2012 level), thus bringing the US dollar exchange rate to LE 6.9738 at end of May 2013.
Net International Reserves & Months of Merchandise Imports
05
10152025303540
Jun-09 Mar-10 Jun-10 Mar-11 Jun-11 Mar-12 Jun-12 Mar-13
(US$ bn)
0123456789
NIR NIR/Months of Merchandise Imports
Month
- 70 -
NIR at the CBE posted US$ 13.4 billion, thus covering 2.8 months of merchandise imports at end of March 2013 (compared with US$ 15.5 billion and 3.2 months of merchandise imports at end of June 2012), down by US$ 2.1 billion or 13.6 percent in the period under review. At end of June 2013, at the time of preparing this Review, NIR increased to US$ 14.9 billion, covering 3.1 months of merchandise imports.
- 71 -
5/2 - Balance of Payments∗
During July/March 2012/2013, Egypt's transactions with the external world unfolded a decline in the overall BOP deficit to only US$ 2.1 billion (from US$ 11.2 billion in the corresponding period a year earlier). The lower BOP deficit was mainly ascribed to the decrease in the current account deficit by 45.1 percent to US$ 3.9 billion (from US$ 7.1 billion). In addition, the capital and financial account achieved a net inflow of US$ 4.3 billion (against a net outflow of US$ 2.7 billion).
The main factors that positively affected the BOP performance during the
period under review were as follows: - The rise of 8.0 percent in workers' remittances to US$ 13.9 billion (against
US$ 12.9 billion). - The relative improvement in tourism revenues by 14.0 percent to US$ 8.1
billion (from US$ 7.1 billion). - The retreat in the trade deficit by 2.7 percent, to US$ 23.8 billion (against US$
24.5 billion). - The decrease in the net outflow of portfolio investment in Egypt to only US$
790.9 million (from US$ 4.6 billion). * Compiled in accordance with the IMF's BPM5, September 1993.
Main Items of BOP
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
(US$ bn)
Current AccountCapital & Financial AccountOv erall Balance
- 72 - 5/2/1- Current Account
The current account deficit dipped 45.1 percent, to only US$ 3.9 billion
(relative to US$ 7.1 billion in the period of comparison), representing 1.4 percent of GDP. Such an improvement was a confluence of the rise in the surplus of the services and income balance and unrequited transfers by 35.8 percent and 8.1 percent, in order, and the retreat in the trade deficit by 2.7 percent. The following is a detailed review of the developments in the BOP and the commodity structure of external trade during July/March 2012/2013, as compared with the same period a year earlier. 5/2/1/1- Trade Balance
Trade deficit narrowed by 2.7 percent, posting US$ 23.8 billion
(compared with US$ 24.5 billion) and making up 8.4 percent of GDP. The decline was a main result of the pickup in merchandise exports by 3.7 percent, to US$ 19.8 billion, owing to the increase in oil exports by 6.7 percent and the slight rise in non-oil exports by 1.0 percent. In the meantime, import payments remained almost unchanged at US$ 43.6 billion, as oil imports went up by 16.2 percent, while non-oil imports declined by 3.7 percent. This will be thoroughly illustrated hereafter in the commodity structure of external trade.
The Coverage Ratio of Merchandise Exports to Merchandise Imports
47.6
39.6
50.2
45.8
38.4
46.7
46.4
30.0
35.0
40.0
45.0
50.0
55.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
%
- 73 - 5/2/1/2 - Balance of Services and Income, and Net Transfers
A) Balance of Services and Income:
The balance of services and income surplus surged 35.8 percent, to US$
5.5 billion (against US$ 4.1 billion) driven largely by the 68.2 percent jump in tourism revenues. The result was a rise in services receipts outpacing that in services payments, as shown below:
- Receipts from services and income
They increased by 10.6 percent to US$ 17.3 billion (against US$ 15.6 billion), reaching the same level recorded in the corresponding period of 2010/2011. This relative improvement came on the back of the rise in the following items:- • Tourism revenues increased by 14.0 percent to US$ 8.1 billion (against
US$ 7.1 billion), reflecting the 14.1 percent pickup in the number of tourist nights, to 114.6 million (against 100.4 million).
• Transportation receipts stepped up by 3.9 percent to US$ 6.7 billion, because of the rise in the receipts of both Egyptian navigation companies by 19.2 percent (mainly freight) and Egyptian aviation companies by 21.3 percent (mostly passengers' services). Such a rise compensated for the retreat in Suez Canal receipts (from US$ 3.9 billion to US$ 3.8 billion), as a result of the 2.9 percent depreciation of the SDRs against the US dollar, and the 3.1 percent decline in net tonnage.
Balance of Services and Income
5.4 5.2 5.0 5.3 5.7 6.1 5.5
‐3.8 ‐3.7 ‐4.1 ‐3.7 ‐4.0 ‐3.9 ‐3.9
1.62.21.71.60.91.51.6
‐6.0‐4.0‐2.00.02.04.06.08.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
Services Receipts Services Payments Balance of Services & Income
(US$ bn)
- 74 - • Other services receipts scaled up 17.0 percent to US$ 2.0 billion (against
US$ 1.7 billion), mainly due to the higher receipts of construction and contracting services, communication services, commissions, agencies' fees, computer services and subscriptions for magazines and journals.
• Government receipts mounted to US$ 347.7 million (from US$ 195.6
million) owing to the rise in other government receipts, and the expenses of foreign embassies in Egypt.
On the other hand, receipts from investment income decreased 15.0
percent to US$ 140.2 million (against US$ 165.0 million), driven by the drop in direct investment income, especially that transferred from profits of branches abroad as well as the interests on deposits at banks abroad.
- Services and income payments
Services and income payments went up by 1.8 percent, to US$ 11.8 billion (against US$ 11.5 billion), because of the following increases:
• Transportation payments augmented by 32.2 percent to US$ 1.3
billion (against US$ 954.9 million), mirroring the rise in the amounts transferred by foreign navigation companies (freight), the amounts transferred for the maintenance of airplanes at foreign ports and for renting them from abroad.
• Other services payments rose by 9.1 percent to US$ 3.0 billion
(against US$ 2.7 billion), mainly due to the rise in the amounts transferred abroad by foreign oil companies, payments of construction and contracting services, royalties and license fees, and insurance services.
• Travel payments increased by 10.0 percent to US$ 2.1 billion (against
US$ 1.9 billion). That was mainly attributed to the surge in visa card payments, external payments of tourism companies and hotels, and the costs of tourism and medical treatment abroad.
- 75 -
On the other hand, the following items witnessed a decrease:
• Investment income payments scaled down by 10.0 percent to US$ 4.6 billion (against US$ 5.1 billion), primarily because of the decrease in profit transfers of foreign companies and transfers of interest payments and dividends of bonds and securities.
• Government expenditures retreated by 3.8 percent to US$ 881.4 million (compared with US$ 916.0 million) due to the decrease in the salaries and expenses of government employees seconded abroad, and in the expenses of Egyptian embassies abroad.
Investment Income Balance
-2000.0
-1500.0
-1000.0
-500.0
0.0
500.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
(US$ mn)
Income Receipts Income Payments Income Balance
Services Balances (Surplus/Deficit)July/March
-5.0
-3.0
-1.0
1.0
3.0
5.0
7.0
Transportation Travel InvestmentIncome
GovernmentServices
Other Services
(US$ bn)
2011/2012 2012/2013
- 76 - B) Net Unrequited Transfers:
Net unrequited transfers surged 8.1 percent to US$ 14.4 billion (against US$ 13.3 billion). The increase was one of the positive factors that helped in driving down the current account deficit. The rise in net unrequited transfers was an outcome of the following increases:
• Net private transfers rose by 7.9 percent, to US$ 13.8 billion (against US$
12.8 billion and US$ 8.9 billion in the same period of the two FYs 2011/12 and 2010/11, in order). The rise was concentrated in workers' remittances that soared 8.0 percent to US$ 13.9 billion (against US$ 12.9 billion).
• Net official transfers went up by 12.8 percent to US$ 639.5 million (against
US$ 566.9 million), due to higher cash and commodity grants to the Egyptian government.
Egyptian Workers, Remittances as a Percentage of GDP
1.61.5 1.9
2.0
1.7 1.5 1.8
0.0
0.5
1.0
1.5
2.0
2.5
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
(%)
- 77 -
Net Unrequited Current Transfers
(US$ mn) July/March Change 2011/2012 2012/2013 Value %
Unrequited Current Transfers (Net) 13336.6 14417.1 1080.5 8.1 1- Net Official Transfers (a+b-c) 566.9 639.5 72.6 12.8
a- Inflows of cash grants 513.1 554.6 41.5 8.0 b- Other inflows of grants 85.1 119.9 34.8 40.9
c- Outflows of official transfers 31.3 35.0 3.7 11.8
2- Net Private Transfers (a+b-c) 12769.7 13777.6 1007.9 7.9 a- Workers' remittances 12916.2 13948.0 1031.8 8.0 b- Other transfers 92.6 67.6 (25.0) (27.0) c- Private transfers abroad 239.1 238.0 (1.1) (0.5)
5/2/2 - Capital and Financial Account During July/March 2012/2013, the capital and financial account revealed a
net inflow of US$ 4.3 billion (compared with a net outflow of US$ 2.7 billion in the period of comparison).
Below is a review of the main items of the capital and financial account:
1- Portfolio investment in Egypt declined to register a net outflow of only
US$ 790.9 million (against a net outflow of US$ 4.6 billion in the period of comparison and a net outflow of US$ 968.9 million in the corresponding period of 2010/2011). This was due to the fact that foreigners' transactions in Egyptian TBs recorded net sales of only US$ 14.7 million (against US$ 3.9 billion).
2- Net inflow of FDI in Egypt rose to US$ 1.4 billion (from US$ 1.2
billion) as a result of the following developments:
• Net outflow of investments in the oil sector contracted to only US$ 607.5 million (from a net outflow of US$ 1.2 billion in the previous corresponding period).
• Net inflow of greenfield investments retreated to US$ 1.7 billion
(against US$ 2.0 billion).
- 78 -
The following table illustrates the sectoral distribution of total FDI flows
to Egypt in the period under review and the period of comparison.
(US$ mn) July/March Economic Activity Sectors 2011/2012 Share
(%)2012/2013 Share
(%) Total FDI Flows to Egypt 7124.9 100.0 6879.3 100.0 Oil 4656.3 65.4 4723.5 68.7 Manufacturing 691.2 9.7 232.1 3.4 Agriculture 80.4 1.1 138.7 2.0 Construction 126.4 1.8 15.6 0.2 Services: 454.8 6.4 513.0 7.5
Real estate 74.0 1.0 44.2 0.6 Finance 118.3 1.7 378.3 5.5 Tourism 22.8 0.3 19.8 0.3 Communications & IT 8.1 0.1 11.3 0.2 Other services 231.6 3.3 59.4 0.9
Undistributed 1115.8 15.6 1256.4 18.2
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$ 2.3 billion (against US$ 824.9 million).
Net Foreign Investment in Egypt
0.1
1.1
0.2
1.91.6
-0.9
0.4
-1.3
-0.3-0.5
-1.6
-0.5
0.1
-1.7-2.0
-1.0
0.0
1.0
2.0
3.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3
2011/2012 2012/2013
US$ bn
Net FDI in Egypt Net Portfolio Investment in Egypt
- 79 - 4- Medium-and long-term loans and facilities resulted in a net disburse-
ment of US$ 102.2 million (against a net repayment of US$ 603.5 million), as an outcome of the rise in total disbursements from US$ 1.2 billion to US$ 2.1 billion, while total repayments amounted to US$ 2.0 billion (against US$ 1.8 billion).
- 80 -
5/3- External Trade
In July/March 2012/2013, Egypt's external trade rose by 1.2 percent, as compared with the previous corresponding period, to US$ 63.4 billion, as export proceeds rose by 3.7 percent to US$ 19.8 billion, and import payments remained unchanged at US$ 43.6 billion. Consequently, the trade deficit narrowed by 2.7 percent to US$ 23.8 billion (8.4 percent of GDP), and the coverage ratio of exports/imports mounted to 45.4 percent (from 43.9 percent). 5/3/1: Structure of Export Proceeds and Import Payments First: Export Proceeds by Degree of Processing∗:
Export proceeds rose by US$ 0.7 billion to US$ 19.8 billion, due mainly to the pickup in oil exports by 6.7 percent (47.7 percent of total exports), and non-oil exports by 1.0 percent (52.3 percent of total exports). Increases were recorded in the exports of all merchandise groups as follows: raw materials by 16.4 percent; semi-finished goods by 5.1 percent; fuel, mineral oils and products by 4.7 percent; and finished goods by 0.8 percent. Hereunder is a detailed review of the exports of different merchandise groups: A- Fuel, Mineral Oils and Products (48.3 percent of total exports):
Exports of fuel, mineral oils and products moved up by 4.7 percent to US$ 9.6 billion (against US$ 9.1 billion). This was ascribed to the 17.7 percent rise in crude oil exports (53.5 percent of total exports) to US$ 5.1 billion and the 3.9 percent fall in exports of oil products (45.2 percent of total exports) to US$ 4.3 billion.
_______________________ * Table 5/2 in the Statistical Section shows the distribution of merchandise exports.
Exports by Degree of Processing
02468
1012
Fuel, MineralOils and Products
Raw Materials Semi - FinishedGoods
Finished Goods
July/March
2010/2011 2011/2012 2012/2013
US$ bn
- 81 - B) Raw Materials (4.7 percent of total exports):
Exports of raw materials accelerated 16.4 percent to US$ 926.7 million (against US$ 795.9 million). That was attributed to the higher exports of some commodities, mainly, iron ores; oil seeds, oleaginous fruits, and plants for medicinal and industrial uses; edible fruits and nuts; and potatoes at rates ranging between 39.2 percent and 106.3 percent. C) Semi-Finished Goods: (7.5 percent of total exports):
Exports of this group increased 5.1 percent during the reporting period to US$ 1.5 billion (against US$ 1.4 billion). That was ascribed to the rise in the exports of plastics and articles thereof; dyeing and tanning extracts; unalloyed aluminum; carbon; and animal and vegetable fats, greases and oils and products, by rates ranging between 19.9 percent and 64.2 percent. D) Finished Goods (39.5 percent of total exports):
Exports of this group slightly inched up 0.8 percent, remaining almost unchanged at US$ 7.8 billion as compared with the corresponding period. Many exports of this group remained unchanged, yet a few of them increased. Exports of gold, pearls, and precious stones; rice; milk and condensed cream; and cement picked up by rates ranging from 21.5 percent to 74.1 percent. Second: Merchandise Imports by Degree of Use*:
Import payments remained unchanged at US$ 43.6 billion as compared with the same period a year earlier. That was an outcome of the rise in oil imports by 16.2 percent (22.1 percent of total imports) and the drop in non-oil imports by 3.7 percent (77.9 percent of total imports). As for merchandise groups, raw materials increased by 13.6 percent; fuel, mineral oils and products by 4.7 percent; and investment goods by 1.2 percent. By contrast, imports of intermediate goods and consumer goods retreated by 4.7 percent and 6.3 percent, respectively.
__________________ * Table 5/3 in the statistical Section shows the distribution of merchandise imports.
- 82 -
Hereunder is a detailed review of the imports of different merchandise groups: A) Fuel, Mineral Oils and Products (16.1 percent of total imports):
Imports of fuel, mineral oils and products increased to US$ 7.0 billion (from US$ 6.7 billion), due mainly to the 5.9 percent hike in oil products (99.2 percent of the total imports of this group). B) Raw Materials (16.1 percent of total imports):
Imports of this group surged to US$ 7.0 billion in the reporting period (against US$ 6.2 billion). This was primarily ascribed to the rise in crude oil imports by US$ 950.0 million as well as the increase in the imports of some other goods such as oil seeds and oleaginous fruits; and mineral ores (by US$ 319.9 million and US$ 63.0 million, in order). C) Intermediate Goods (27.5 percent of total imports):
Imports of intermediate goods declined to US$ 1.2 billion (from US$ 1.3 billion) because of the decline in the imports of cement by 87.4 percent; fertilizers by 37.6 percent; articles of base metals by 30.6 percent; and iron and steel products by 16.7 percent.
Imports by Degree of Use
0.02.04.06.08.0
10.012.014.0
Fuel, MineralOils &
Products
RawMaterials
IntermediateGoods
InvestmentGoods
ConsumerGoods
2010/2011 2011/2012 2012/2013
US$ bn July/March
- 83 - D) Investment Goods (17.1 percent of total imports):
Imports of investment goods stepped up to US$ 7.5 billion (against US$ 7.4 billion). That was attributed to the rise in the imports of parts of railway and tramway locomotives or rolling stock equipment by 119.7 percent; passenger cars by 90.5 percent; pumps, fans and articles thereof by 58.5 percent; and cargo transport vehicles by 41.3 percent. E) Consumer Goods (22.3 percent of total imports):
Imports of consumer goods declined 6.3 percent to US$ 9.7 billion (against US$ 10.4 billion), due to: - The retreat in the imports of non-durable consumer goods by 9.4 percent to
US$ 7.4 billion (against US$ 8.1 billion). This stemmed from the decline in some imports, mainly: soap, detergents, and artificial waxes by 65.4 percent; vegetables, plants, roots, and tubers by 59.4 percent; the remains of food processing industry by 25.5 percent; and pharmaceuticals by 5.8 percent.
- The rise in imports of durable consumer goods by 5.0 percent to US$ 2.3
billion, due to the rise of some imports, mainly passenger cars (by 43.3 percent); and household refrigerators and electric freezers (by 37.9 percent).
5/3/2: Sectoral Distribution of Merchandise Transactions
On the level of economic sectors, the share of the public sector in trade exchange increased to 31.8 percent (against 30.5 percent). Meanwhile, the shares of the private and investment sectors declined to 61.5 percent (from 61.6 percent) and 6.7 percent (from 7.9 percent), respectively.
As for the sectoral distribution of merchandise exports, the private sector accounted for 45.3 percent, followed by the public sector (44.4 percent), and the investment sector (10.3 percent).
As to import payments, the private sector accounted for 68.8 percent, followed by the public sector (26.1 percent), and the investment sector (5.1 percent).
- 84 -
Hereunder is a detailed review of export proceeds and import payments by economic sector: A) The Private Sector
Exports of the private sector mounted by 0.5 percent to US$ 9.0 billion in the reporting period (against US$ 8.9 billion). Finished goods represented 76.6 percent of total exports. The main exports were gold, pearls, and precious stones; electric appliances; fertilizers; ready-made clothes; cotton textiles; and pharmaceuticals.
Likewise, imports of this sector rose 1.1 percent to US$ 30.0 billion. This came on the back of the rise in the imports of fuel, mineral oils and products by 95.6 percent (due to the increase in oil imports by 115.8 percent), and raw materials by 8.4 percent. In addition, there was a rise in the imports of car accessories and spare parts; pumps, fans, and parts thereof; passengers cars; oil seeds and oleaginous fruits; plastics and articles thereof; and wheat. B) The Public Sector
Export proceeds of the public sector inched up 3.3 percent to US$ 8.8
billion (from US$ 8.5 billion). That was attributed to the increase in oil exports, especially crude oil (97.0 percent). Moreover, the following exports inched up: aluminum products; cotton; unalloyed aluminum; cotton yarn; organic and inorganic chemicals; and fertilizers.
Trade Exchange US$ 63.4 billion
The Public Sector
US$ 20.2 billion
The Private Sector
US$ 39.0 billion
The Investment
Sector US$ 4.2 billion
Exports US$ 8.8 billion
Imports US$ 11.4
billion
Exports US$ 9.0 billion
Imports US$ 30.0
billion
Exports US$ 2.0 billion
Imports US$ 2.2 billion
- 85 - Similarly, import payments went up by 7.5 percent to US$ 11.4 billion, due
to the pickup in the imports of raw materials by 44.8 percent (owing to the rise in crude oil imports by US$ 1.0 billion or 81.4 percent), and investment goods by 29.4 percent. Likewise, the imports of parts of railway and tramway locomotives or rolling stock equipment; motors, generators, transformers and spare parts; and pharmaceuticals increased. C) The Investment Sector
Export proceeds of the investment sector augmented 22.3 percent to US$ 2.0 billion (against US$ 1.7 billion). The main exports were oil products (45.4 percent of total exports); cotton textiles; organic and inorganic chemicals; iron and steel products; ready-made clothes; paper, cardboard paper and articles thereof; and ceramic products.
Meanwhile, import payments of this sector retreated 32.8 percent to US$
2.2 billion (against US$ 3.3 billion). That was attributed to the decline in import payments of all merchandise groups: maize; vegetables, plants and tubers; cranes, bulldozers, and parts thereof; organic and inorganic chemicals; and car accessories and parts.
5/3/3- Geographical Distribution of Merchandise Transactions∗
According to economic groupings, the volume of trade exchange
between Egypt and the Arab countries increased by 9.8 percent, the Asian countries by 5.6 percent, and Australia and other countries and regions by 6.6 percent. In the meantime, the trade exchange between Egypt and the African countries declined by 7.0 percent, the EU by 3.8 percent, other European countries by 3.7 percent, and the Russian Federation and the USA by 3.0 percent each.
The order of countries in terms of the relative importance of trade exchange
with Egypt ran as follows: the USA ranked first (9.5 percent), followed by Italy (8.5 percent), China (6.0 percent), the UAE (5.3 percent), Germany (5.0 percent), and India (4.3 percent).
* Table (5/4) in the Statistical Section illustrates the geographical distribution of imports and exports.
- 86 - The geographical distribution of export proceeds shows that the EU
countries came in the lead (37.1 percent), followed by the Arab countries (19.1 percent). As for countries, Italy came on top, followed by the USA, India, the UAE, and the UK, with a combined share of 49.9 percent of total export proceeds.
Turning to import payments, the EU countries ranked first (30.1 percent),
followed by the non-Arab Asian countries (21.2 percent). China was the main exporter, followed by the USA, Germany, the UAE, Kuwait, and Switzerland with a combined share of 35.2 percent of total imports.
0.01.02.03.04.05.06.07.08.0
EU Countries OtherEuropeanCountires
RussianFederation &
C.I.S
USA Arab Countries AsianCountries (non-
Arab)
Af ricanCountries (non-
Arab)
Australia &Other
Countries
2011/2012 2012/2013
US$ bnExports by Geographical Distribution
July/March
-16.0-14.0-12.0-10.0
-8.0-6.0-4.0-2.00.0
EUCountries
OtherEuropeanCountries
RussianFederation
& C.I.S
USA ArabCountries
AsianCountries
(non-Arab)
AfricanCountries
(non-Arab)
Australia &Other
Countries
2011/2012 2012/2013
US$ bnImports by Geographical Distribution
July/March
- 87 -
5/3/4 - Breakdown of Trade by Main Commodity
The volume of trade exchange of most merchandise groups augmented during July/March 2012/13, except for the groups of metals, foodstuffs, and chemicals. Crude oil and its products contributed 30.0 percent, followed by chemicals (9.0 percent), machinery and electric appliances and equipment (7.8 percent), and base metals and articles thereof (7.3 percent).
As for export proceeds by main commodity, crude oil and its products
came first (47.7 percent), followed by chemicals (10.1 percent) and raw cotton and its products (7.6 percent).
As for imports payments, crude oil and its products ranked first (22.0
percent), followed by machinery and electric appliances and equipment (10.4 percent), and foodstuffs (excluding cereals) (9.4 percent).
- 87 -
5/4- International Finance
Exports by Main Commodity
02468
10
Oil Foodstuffs(excludingCereals)
Cotton & OtherTextiles
Cereals Chemicals ElectricAppliances &
Parts
Base Metals &Products
Vehicles &Other Means
ofTransportation
2011/2012 2012/2013
US$ bn July / March
Imports by Main CommodityJuly / March
-12-10-8-6-4-20
Oil Foodstuffs(ExcludingCereals)
Cotton & OtherTextiles
Cereals Chemicals ElectricAppliances &
Parts
Base Metals &Products
Vehicles &Other Means
ofTransportation
2011/2012 2012/2013
US$ bn
Net International FinanceJuly / March
(1759.5)
(6166.9)
(1963.1)
-7000-6000-5000-4000-3000-2000-1000
01000200030004000
2012/20132011/20122010/2011
(US$ mn)
Net Interest Pay ments and Prof it Transf ersTotal Net Resources f rom Abroad Net International Finance f rom Abroad
- 88 -
5/4: International Finance∗
Resources from abroad registered a net inflow of US$ 2.7 billion during July/March 2012/2013 (against an outflow of US$ 2.9 billion in the respective quarter a year earlier). In the meantime, interest payments and profit transfers recorded a net outflow of US$ 4.4 billion (against US$ 3.3 billion). Accor-dingly, net international finance achieved a net outflow of US$ 1.7 billion (against US$ 6.2 billion). This can be illustrated as follows:
International Finance from Abroad (Net) (US$ mn)
July/March 2011/12 2012/13+
Change (-)
Net International Finance from Abroad (6166.9) (1759.5) 4407.4 A- Flows of Resources from Abroad (2899.6) 2674.5 5574.1 1- Direct investment in Egypt (net) 1165.7 1376.1 210.4 2- Portfolio investment in Egypt (net) (4569.2) (790.9) 3778.3 3- Direct investment abroad (177.4) (110.8) 66.6 4- Portfolio investment abroad (net) (161.3) 29.7 191.0 5- Official grants (net) 566.9 639.5 72.6 6- External borrowing (net) 275.7 1530.9 1255.2 B- Interest Payments and Profit Transfers (3267.3) (4434.0) (1166.7) 1- Profit transfers of direct investment (net) (2549.3) (3791.2) (1241.9) 2- Profit transfers of portfolio investment (net) (348.0) (247.4) 100.6 3- Interest on external loans and facilities (430.8) (458.4) (27.6) 4- Interest on bank deposits abroad (net) 60.8 63.0 2.2
+ Provisional.
* The report follows up the developments in all components of international finance which constitutes of two
main elements: (1) net flows of external debt including net disbursements and repayments of external loans and facilities, and bonds issued in international markets; and (2) other non-debt generating items represented in net foreign investments abroad (direct and portfolio), and net official grants and aids extended to Egypt and those offered by Egypt to some countries.
Foreign InvestmentFlows in EgyptJuly / March
4332.0 1165.71376.1
7111.2
(4569.2)(790.9)
(9000)
(7000)(5000)
(3000)
(1000)1000
3000
50007000
9000
2009/2010 2010/2011 2011/2012 2012/2013
US$ mn
Net Direct Investment in Egypt Net Portfolio Investment in Egypt
Chart (A)
Foreign InvestmentFlows from Abroad
July / March
(648.6)
(177.4)
(110.8)
(692.6)
(161.3)
29.7
(700)
(500)
(300)
(100)
100
2009/2010 2010/2011 2011/2012 2012/2013
US$ mn
Direct Investment AbroadNet Portfolio Investment Abroad
Chart (B)
- 89 - First: Net Inflows of External Resources: 1- Net foreign investment in Egypt (direct
and portfolio) [inflows chart (A)] unfolded a net inflow of US$ 585.2 million in July/March 2012/2013 (against a net outflow of US$ 3.4 billion in the period of comparison), mainly due to:
- The increase in net inflows of FDI in
Egypt to US$ 1.4 billion in the reporting period (against US$ 1.2 billion).
- The retreat in net outflows of
portfolio investments∗ in Egypt to US$ 790.9 million (against US$ 4.6 billion).
2- Net foreign investments abroad (direct and portfolio) achieved a net outflow
of US$ 81.1 million, down by US$ 257.6 million in the period under review [chart (B)] due to the following developments:
• Net FDI abroad retreated by US$
66.6 million to stand at US$ 110.8 million.
• Net portfolio investments abroad
shifted from a net outflow of US$ 161.3 million to a net inflow of US$ 29.7 million.
3- External borrowing (medium-, long- and short-term loans and facilities)
realized net disbursements of US$ 1.5 billion during July/March 2012/2013 (against US$ 275.7 million in the period of comparison) owing to the rise in disbursements of loans and facilities during the period under review.
4- Net official grants expanded to US$ 639.5 million, up by US$ 72.6 million. * Including foreigners' investments in Egyptian TBs, and foreigners' dealings in the stock market.
Net Flows of Official Grants and External Borrowing July/March
639.5
893.1566.9
3814.5
275.7
1530.9
100400700
10001300160019002200250028003100340037004000
2009/2010 2010/2011 2011/2012 2012/2013
US$ mn
Official grants Net external borrowing
- 90 - Second: Net Flows of Interest Payments and Profit Transfers:
Net flows of interest payments and profit transfers (represented in net interest and profits on external loans and facilities, and foreign investment (direct and portfolio) rose by about US$ 1.1 billion to achieve an outflow of US$ 4.4 billion (against US$ 3.3 billion). This was mainly attributed to the rise in net FDI profit transfers, which posted an outflow of US$ 3.8 billion (against US$ 2.5 billion). 5/4/1- Foreign Direct Investment (FDI) in Egypt∗
Net FDI in Egypt registered an inflow of US$ 1.4 billion during July/March 2012/2013 (against US$ 1.2 billion in the corresponding period). This was mainly attributed to the drop in capital repatriation by 7.7 percent (US$ 456.0 million), and the decline in total investment inflows by 3.4 percent (US$ 245.6 million).
Investment inflows during the said period indicated that flows from the USA increased by US$ 1.2 billion to US$ 1.7 billion, and from the Arab countries by about US$ 43.7 million to US$ 1.1 billion (45.7 percent of which went to greenfield investments). By contrast, flows from the European Union retreated by US$ 1.8 billion to only US$ 3.4 billion (79.3 percent of which went to petroleum investments), against US$ 5.3 billion. However, inflows from the rest of the world increased by US$ 305.5 million to US$ 712.6 million.
∗ 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).
- 91 -
Geographical Distribution of FDI in Egypt (US$ mn)
July/March 2011/2012 2012/2013* Change + (-)
Net Flows of FDI in Egypt (A-B) 1165.7 1376.1 210.4 A-Total Inflows 7124.9 6879.3 (245.6) USA 428.9 1655.2 1226.3 EU Countries 5256.4 3435.3 (1821.1) Germany 172.1 150.7 (21.4) France 265.0 191.6 (73.4) UK 3605.1 2168.7 (1436.4) Italy 135.5 63.9 (71.6) Greece 55.4 17.2 (38.2) Spain 45.0 28.6 (16.4) The Netherlands 99.6 146.1 46.5 Belgium 546.6 529.7 (16.9) Luxemburg 1.0 6.1 5.1 Denmark 2.4 14.8 12.4 Sweden 309.6 39.0 (270.6) Austria 2.9 6.8 3.9 Cyprus 1.0 10.8 9.8 Others 15.2 61.3 46.1 Arab Countries 1032.5 1076.2 43.7 Saudi Arabia 209.0 129.5 (79.5) UAE 503.0 253.9 (249.1) Tunisia 4.2 1.4 (2.8) Algeria 29.2 8.6 (20.6) Kuwait 41.7 32.7 (9.0) Lebanon 43.2 19.3 (23.9) Jordan 9.3 9.8 0.5 Bahrain 130.7 220.8 90.1 Qatar 33.9 366.8 332.9 Oman 9.1 7.2 (1.9) Yemen 1.9 3.2 1.3 Sudan 0.5 0.8 0.3 Syria 7.1 17.2 10.1 Others 9.7 5.0 (4.7) Other Countries 407.1 712.6 305.5 Switzerland 98.6 96.7 (1.9) Japan 32.1 57.6 25.5 Canada 25.9 9.5 (16.4) China 58.8 32.4 (26.4) Australia 0.5 2.0 1.5 India 33.4 63.3 29.9 Turkey 8.7 43.6 34.9 Norway 3.1 2.4 (0.7) Other countries 146.0 405.1 259.1 Capital Repatriation** (5959.2) (5503.2) 456.0
* 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 or all of it abroad.
- 92 - The sectoral distribution of total FDI inflows during July/March
2012/2013 showed that the petroleum sector received 68.7 percent of the total. The bulk of these flows came from the USA, followed by the EU (mainly the UK and Belgium), the Arab countries (chiefly the UAE), and the rest of the world (mainly India, Switzerland, and Ukraine). The manufacturing sector came next with a share of 3.4 percent of the total, followed by services (7.4 percent), agriculture (2.0 percent), construction and building (0.2 percent), and other sectors (18.3 percent). The breakdown of total FDI inflows by investment purpose revealed that petroleum investments ranked first as stated above, amounting to US$ 4.7 billion or 68.7 percent of the total. Greenfield investments came next with a share of US$ 1.8 billion (26.6 percent), followed by proceeds from selling local entities to non-residents with US$ 281.7 million (4.1 percent), then real estate investments with US$ 44.2 million (0.6 percent).
1376.11165.72089.6
4332.0
(8000.0)
(6000.0)(4000.0)
(2000.0)0.0
2000.0
4000.06000.0
8000.0
2009/2010 2010/2011 2011/2012 2012/2013
Outf lows Proceeds f rom selling local enitities to non-residents Petroleum sector inv estments Transf ers f or buy ing real estates Greenf ield Inv estmentNet Foreign Direct Inv estment in Egy pt
Net FDI in EgyptJuly / MarchUS$ mn
Total FDI in Egypt by Economic Sector July / March 2012/2013
(US$ mn)Communications & IT
11.3
Real Estate 44.2
Other Services 59.4
Tourism 19.8
Undistributed 1256.4
Services 513.0
Construction& Building
15.6
Petroleum 4723.5
Agriculture 138.7
Manufacturing232.1
Finance 378.3
- 93 - 5/4/2- External Official Grants
The following chart illustrates that net transfers of official grants (cash and in-kind) increased to about US$ 639.5 million during July/March 2012/2013 (against US$ 566.9 million). The rise came on the back of the pickup in inward in-kind grants by US$ 34.8 million to US$ 119.9 million and the increase in inward cash grants by US$ 41.5 million to US$ 554.6 million. Moreover, official grants transferred abroad augmented by US$ 3.7 million to US$ 35.0 million (compared with US$ 31.3 million).
According to the data of the Ministry of International Cooperation, total new grant commitments boosted by US$ 243.7 million to US$ 301.6 million in July/March 2012/2013 (against US$ 57.9 million in the corresponding period a year earlier).
472.8 513.1 554.6
469.6
8.2
85.1119.9
238.0
(49.3) (24.9) (31.3) (35.0)-150.0
-50.050.0
150.0250.0350.0450.0550.0650.0750.0850.0950.0
2009/2010 2010/2011 2011/2012 2012/2013
Cash inw ard grants In-Kind inw ard grants Outw ard grants
Transfers of Official Grants during July/MarchUS$ mn
- 94 -
Official Grants: New Commitments and Net Actual Flows (US$ mn)
July/March 2011/2012 2012/2013* 2011/2012 2012/2013*
Actual Flows Commitments Net Inflows 566.9 639.5 Inflows, of which: 598.2 674.5 57.9 301.6 USA 76.3 102.8 15.5 190.0 Japan 2.5 1.6 13.0 Germany 17.1 57.4 20.5 UK 0.1 China 0.3 8.4 23.6 Canada 0.2 0.1 Switzerland 0.1 0.1 UAE 0.1 Qatar 500.0 501.0 Italy 4.1 Belgium 1.5 World Bank 3.0 7.7 European Commission 2.0 56.1 European Investment Bank 19.1 Other Countries & Organizations 0.1 3.0 3.9 1.0 Outflows (31.3) (35.0)
* Provisional. The sectoral distribution of the grant commitments showed that 88.0 percent of these grants went to the services sector (of which the general government received 63.0 percent). Meanwhile, productive sectors accounted for 12.0 percent of which 9.3 percent went to agriculture and irrigation. (see the following table).
- 95 -
Breakdown of Official Grant Commitments by Beneficiary
(US$ mn) July/March
2011/2012 Percent 2012/2013* Percent Change Total 57.9 100.0 301.6 100.0 243.7 Productive Sectors 11.2 19.3 36.0 12.0 24.8 Agriculture and irrigation 2.8 4.8 28.0 9.3 25.2 Energy & electricity 5.7 9.8 0.0 0.0 (5.7) Potable water & sanitation 2.7 4.7 7.7 2.6 5.0 Others 0.0 0.0 0.3 0.1 0.3 Services Sectors 46.7 80.7 265.6 88.0 218.9 Transportation, communications, and IT 0.0 0.0 6.7 2.2 6.7 Wholesale and retail trade 0.0 0.0 25.5 8.5 25.5 Financial intermediary & supporting services 1.2 2.1 0.0 0.0 (1.2) Insurance and social solidarity 10.9 18.8 0.0 0.0 (10.9) Education and health 4.5 7.8 0.7 0.2 (3.8) General government 0.7 1.2 190.0 63.0 189.3 Others 29.4 50.8 42.7 14.1 13.3
* Provisional
5/4/3- External Debt
Total external debt (public and private - all maturities) surged by 11.6
percent or about US$ 4.0 billion, to US$ 38.4 billion at end of March 2013 (against US$ 34.4 billion at end of June 2012). The pickup was an outcome of the following:
• Net disbursement of loans, facilities and deposits (all maturities) of US$ 4.5 billion (including the repayment of US$ 284.5 million of LE bonds falling due in July 2012 and the sales of bonds at a value of US$ 44.4 million by resident entities to non-resident entities).
• The decrease in most currencies of borrowing versus the US dollar by US$ 460.4 million worth.
Concerning the distribution of external debt, the public sector was the
main obligor, with a share of 95.9 percent (US$ 36.8 billion) of the total debt at end of March 2013. The private sector owed the remaining 4.1 percent (US$ 1.6 billion).
- 96 - 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$ 31.6 billion, accounting for 82.3 percent of total external debt at end of March 2013. To elaborate, long-term debt represented US$ 30.6 billion and medium-term debt US$ 1.0 billion (in the form of bonds issued abroad and loans from international organizations). Short-term debt reached US$ 6.8 billion or 17.7 percent of the total debt, including a US$ 4.0 billion Qatari deposit at the CBE. - Around US$ 13.8 billion of long-term loans∗∗ (35.9 percent of the total
debt) were owed to Paris Club members, while debt to countries other than Paris Club members increased US$ 1.3 billion, to reach US$ 2.4 billion or 6.2 percent.
- Debt to international and regional organizations posted some US$ 11.7 billion or 30.6 percent of the total at end of March 2013, with an increase of US$ 632.7 million above the end of June 2012.
- The balance of Egyptian bonds and notes floated abroad (held by non-residents) reached US$ 2.7 billion (7.0 percent of the total debt), including: • Guaranteed government securities issued by the Egyptian government
in September 2005, at a value of US$ 1.3 billion and falling due in September 2015.
• Sovereign bonds issued abroad in April 2010, at a value of US$ 910.6 million, and falling due in two tranches in 2020 and 2040.
• Government bonds*** issued abroad in June 2012, at a value of US$ 500 million, and reaching maturity in June 2017.
∗ 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 and non-rescheduled), in addition to buyers’ and suppliers’
credit. *** Issued by the Ministry of Finance for the Saudi Fund for Development (SFD).
External Debt StructureEnd of March 2013
Short -term debt
17.7%Long- term deposits
2.6%
Suppliers' & buyers' credit
1.6%
Egyptian bonds and notes
7.0%
International organizations
30.6%
Other bilateral debt
15.7%
Rescheduled bilateral debt
24.8%
Private sector (Non -
guaranteed)0.04%
- 97 - - Non-guaranteed debt of the private sector registered only US$ 20.0
million. - Long-term deposits reached about US$ 1.0 billion (2.6 percent of the total
debt), represented in the deposits held by the CBE.
External Debt Structure (US$ mn)
June 2012 March 2013+ Balances at the End of Value % Value % Change
(-) Total External Debt 34384.5 100.0 38384.5 100.0 4000.0 1- Medium- & long-term loans 31482.6 91.5 31566.9 82.3 84.3 A- Guaranteed loans 31431.3 91.3 31546.9 82.3 115.6
- Bilateral loans owed to Paris Club member countries++ 15328.4 44.5 13786.6 35.9 (1541.8)
- Countries other than Paris Club members 1113.5 3.2 2384.1 6.2 1270.6
- Suppliers' credit 20.6 0.1 14.8 0.0 (5.8) - International organizations 11068.1 32.2 11700.8 30.6 632.7 - Egyptian bonds & notes 2900.7 8.4 2660.6 7.0 (240.1)- Long-term deposits 1000.0 2.9 1000.0 2.6 0.0
B- Non-guaranteed loans 51.3 0.2 20.0 0.0 (31.3)2- Short-term debts 2901.9 8.5 6817.6 17.7 3915.7
- Deposits 913.7 2.7 4845.2 12.6 3931.5 - Facilities 1988.2 5.8 1972.4 5.1 (15.8)
+ Provisional. ++ Representing the bilateral loans (rescheduled and non-rescheduled), in addition to buyers’ and suppliers’
credit.
- Short-term debt rose by US$ 3.9 billion to US$ 6.8 billion (78.0 percent owed by the public sector). This was attributable both to the increase in short-term deposits of non-residents by US$ 3.9 billion to US$ 4.8 billion (including the Qatari deposits at the CBE), and to the meager decline in short-term trade facilities by 0.8 percent to US$ 2.0 billion.
External Debt by Debtor
The breakdown of external debt by debtor at end of March 2013 showed the following:
- Debt of the monetary authority scaled up by some US$ 4.0 billion to US$ 6.6 billion (owing to the increase in the deposits from Arab countries at
the CBE), of the central and local government by US$ 138.0 million to US$ 25.7 billion (67.1 percent of total debt), and of banks by US$ 36.7 million worth to US$ 1.7 billion.
- Debt of other sectors decreased by US$ 171.0 million to US$ 4.4 billion.
- 98 -
In spite of the aforementioned developments, the Egyptian government
remained the major obligor, with a share of 67.1 percent of total external debt at end of March 2013, against 74.4 percent at end of June 2012. Debt by Main Creditor
The breakdown of external debt∗ by creditor revealed that 31.3 percent of the total debt was owed to the four main Paris Club members; namely Germany (8.8 percent), Japan (8.6 percent), France (7.0 percent), and the USA (6.9 percent). On the other hand, debt to the Arab countries accounted for 17.5 percent, headed by Qatar (10.5 percent), then Saudi Arabia∗∗ (3.5 percent). Meanwhile, international organizations accounted for 30.6 percent.
* Bilateral loans represent only borrowing between governments. ** Including a long-term deposit at the CBE from the Saudi Fund for Development (SFD) in the amount of US$
1.0 billion, and excluding the US$ 500 million represented in Egyptian bonds issued by the Ministry of Finance for the Saudi Fund for Development, as they belong to bonds and notes floated abroad.
External Debt by DebtorEnd of March
0
10
20
30
40
50
201320122011
(US$ bn)
Central & Local Gov ernment Monetary Authority BanksOther Sectors
External Debt by DebtorShare in Total Increase/Decrease
during July / March
505.2
(1609.3)
138.0243.0139.5
3996.3
(108.9)(157.2)
36.7507.7
143.4
(171.0)
-2000
-1000
0
1000
2000
3000
4000
5000
2010/2011 2011/2012 2012/2013
(US$ mn)
Central & Local Gov ernmentMonetary Authority BanksOther Sectors
External Debt by Creditor
Egy ptian bonds and
notes7.0%
International & regional
organizations30.6%
Other countries
10.1%
Arab countries
17.5%
United Kingdom
3.5%
Germany8.8%
Japan8.6%
France7.0%
USA6.9%
March2013
External Debt by Major CurrenciesEnd of March 2013
Japanese y en8.9%
Other currencies1.5%
SDRs7.0%
Kuwaiti dinar6.1%
Euro21.6%
Swiss f ranc1.1%
Egy ptian pound0.6%
US dollar 53.2%
- 99 - External Debt by Borrowing Currency
The distribution of external debt by main component currencies manifested
that the US dollar was the main currency of borrowing, with a relative importance of 53.2 percent, because of the outstanding obligations in US dollar to creditors (countries and organizations) other than the USA. The euro came next with a share of 21.6 percent, then the Japanese yen (8.9 percent), the SDRs (7.0 percent) and the Kuwaiti dinar (6.1 percent). The said currencies combined represented 43.6 percent of the total, while other currencies made up 3.2 percent (of which the Swiss franc accounted for 1.1 percent and the Egyptian pound 0.6 percent).
External Debt Service
During July/March 2012/2013, the total payments of external debt service (medium- and long-term) accelerated by US$ 62.5 million, posting US$ 2.6 billion. The increase was ascribed to the rise in principal repayments by US$ 96.4 million to US$ 2.1 billion and the drop in interest payments by US$ 33.9 million to US$ 519.5 million.
- 100 - Main Indicators of External Debt
According to the main indicators of external debt, the ratio of debt service/GDP rose to 14.7 percent at end of March 2013 (from 13.1 percent at end of March 2012). Moreover, the external debt per capita went up from US$ 378.8 to US$ 435.0. On the other hand, the ratio of debt service/current receipts decreased to 2.6 percent owing to the 7.2 percent rise in current receipts in the reporting period.
Short-term debt/ international
reserves also climbed to 50.8 percent at end of March 2013 (from 19.6 percent at end of March 2012) as a result of the rise in short-term debt including deposits, and the decline in international reserves. Also, the ratio of short-term debt/total external debt increased from 8.9 percent to 17.7 percent.
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 stay within safety limits (as shown in the following table). The external debt indicator as a percentage of GDP (13.5 percent) came among the best global levels that ranged between 16.2 percent (for developing Asian countries) and 67.3 percent (for North and Central European countries). Moreover, by recording 6.1 percent, the indicator of debt service/export proceeds of goods and services was lower than global levels for 2012 that ranged between 11.4 percent (for sub-Saharan Africa) and 58.5 percent (for North and Central Europe), according to the IMF World Economic Outlook issued in April 2013.
77.467.0
14.7 14.7
428.5435.0
0
15
30
45
60
75
90
2009/10 2010/11 2011/12 2012/13
%
350.0360.0370.0380.0390.0400.0410.0420.0430.0440.0
(US$)
Government External Debt / External Debt External Debt /GDP External Debt Per Capita (US$) (right axis)
External Debt IndicatorsEnd of March
5.3 5.1
19.6
50.8
8.917.7
7.4 7.1
0
10
20
30
40
50
60
2009/10 2010/11 2011/12 2012/13
%
Debt Serv ice / Current Receipts (including transf ers)Short-term Debt / Net International Reserv esShort-term Debt / Total External DebtDebt Serv ice / Exports of Goods and Serv ices
- 101 -
Main Debt Indicators in Egypt Vs. Economic Regions
External Debt/ GDP
External Debt/ Exports of
Goods & Services
Debt Service/ Exports of
Goods & Services
Region
2011 2012 2011 2012 2011 2012
North and Central Europe 61.8 67.3 152.8 162.4 56.9 58.5
Asia 15.0 16.2 48.1 53.4 21.2 24.5
Latin America and the Caribbean 21.8 24.0 100.0 110.8 28.0 28.8
Middle East and North Africa 25.2 24.5 49.6 50.1 13.7 13.1
Sub-Saharan Africa 23.2 33.7 60.5 63.6 10.6 11.4 Source: IMF World Economic Outlook - Statistical Appendix, April 2013. New Commitments on Loans and Facilities
In the first three quarters of 2012/2013, new commitments on loans and facilities amounted to US$ 3.6 billion. Specifically, bilateral loans registered US$ 2.3 billion or 62.6 percent of total commitments and loans from international and regional organizations posted US$ 1.3 billion or 37.4 percent. Thus, total commitments went up by US$ 1.4 billion above the corresponding period of the preceding FY, due to the new loan commitments with Turkey, the Islamic Development Bank (IDB), France, and the Saudi Fund for Development (SFD).
Annex
- 103 -
Statistical Section
(1) Indicators of Development and Economic Growth
(1/1) GDP at Factor Cost by Economic Sector (at 2011/2012 Prices) (1/2) GDP by Expenditure (at 2011/2012 Prices) (1/3) Consumer Price Index (Urban) (January 2010=100) (1/4) Producer Price Index (2004/2005=100)
(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
Financial Sector
(2/2/1) Structure of the Egyptian Banking System (2/2/2) Local Mutual Funds Authorized and Operating as at 31/3/2013
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
- 104 -
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 March 2013)
- 105 -
(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) National Investment Bank (Resources & 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 by Type (5/7) Distribution of External Debt by Main Currencies
(LE mn)
Public Private Total Public Private Total Public Private Total
Total GDP 436339.9 690941.3 1127281.2 438987.9 713821.5 1152809.4 0.6 3.3 2.3Agriculture, Irrigation & Fishing 24.3 169183.0 169207.3 25.5 174354.0 174379.5 4.9 3.1 3.1 Extractions 161604.0 35136.0 196740.0 157777.0 34049.0 191826.0 -2.4 -3.1 -2.5
Oil 71078.0 12564.0 83642.0 69910.0 12432.0 82342.0 -1.6 -1.1 -1.6Natural gas 89999.0 18644.0 108643.0 87723.0 17582.0 104909.0 -3.0 -5.7 -3.4Others 527.0 3928.0 4455.0 540.0 4035.0 4575.0 2.5 2.7 2.7
Manufacturing Industries 29266.0 146628.0 175894.0 29953.0 150402.0 180355.0 2.3 2.6 2.5Oil refining 6463.0 6184.0 12647.0 6638.0 6308.0 12946.0 2.7 2.0 2.4Others 22803.0 140444.0 163247.0 23315.0 144094.0 167409.0 2.2 2.6 2.5
Electricity 12079.0 2000.0 14079.0 12834.0 1991.0 14825.0 6.3 -0.5 5.3Water 3192.0 0.0 3192.0 3330.0 0.0 3330.0 4.3 0.0 4.3Sewerage 790.0 0.0 790.0 822.0 0.0 822.0 4.1 0.0 4.1Construction & Building 5718.0 42145.0 47863.0 5991.0 45027.0 51018.0 4.8 6.8 6.6Transportation & Storage 9386.0 33177.0 42563.0 9629.0 34174.0 43803.0 2.6 3.0 2.9Communications 9871.8 18404.3 28276.1 10039.0 19758.0 29797.0 1.7 7.4 5.4Information 775.0 1491.0 2266.0 802.0 1541.0 2343.0 3.5 3.4 3.4Suez Canal 23089.0 0.0 23089.0 22121.0 0.0 22121.0 -4.2 0.0 -4.2Wholesale & Retail Trade 3878.0 124384.0 128262.0 3980.0 127860.0 131840.0 2.6 2.8 2.8Finance 25664.0 13868.0 39532.0 26286.0 14254.0 40540.0 2.4 2.8 2.5Insurance 2368.0 1169.0 3537.0 2434.0 1205.0 3639.0 2.8 3.1 2.9Social Solidarity 36553.0 0.0 36553.0 37702.0 0.0 37702.0 3.1 0.0 3.1Tourism 385.0 34809.0 35194.0 399.0 38375.5 38774.5 3.6 10.2 10.2Real Estate 686.0 26201.0 26887.0 708.0 27298.0 28006.0 3.2 4.2 4.2
Real Estate Ownership 429.0 13586.0 14015.0 442.0 14338.0 14780.0 3.0 5.5 5.5Business Services 257.0 12615.0 12872.0 266.0 12960.0 13226.0 3.5 2.7 2.8
General Government 110029.8 0.0 110029.8 113147.0 0.0 113147.0 2.8 0.0 2.8Sٍocial Services 981.0 42346.0 43327.0 1008.4 43533.0 44541.4 2.8 2.8 2.8
Education 0.0 12172.0 12172.0 0.0 12515.0 12515.0 0.0 2.8 2.8Health 938.0 13118.0 14056.0 963.0 13526.0 14489.0 2.7 3.1 3.1Others 43.0 17056.0 17099.0 45.4 17492.0 17537.4 5.6 2.6 2.6
Source : Ministry of Planning.
-106- (1/1) GDP at Factor Cost by Economic Sector
At 2011/2012 prices
SectorsJuly / March Growth Rate (%)
2011/2012 2012/2013 2012/2013
2011/2012 2012/2013 2011/2012 2012/2013 2011/2012 2012/2013
1- GDP at Market Price (2+5-6) 1175.2 1202.3 100.0 100.0 1.8 2.3
2- Total Domestic Expenditure (3+4) 1262.6 1287.8 107.5 107.1 5.5 2.0
3- Final Consumption 1084.5 1117.9 92.3 93.0 5.6 3.1
Final private consumption 955.8 984.8 81.3 81.9 5.9 3.0
Final government consumption 128.7 133.1 11.0 11.1 3.1 3.4
4- Gross Capital Formation 178.1 169.9 15.2 14.1 5.3 -4.6
Investments 170.4 166.8 14.5 13.9 -4.3 -2.1
Change in stock 7.7 3.1 0.7 0.2 .. ..
5- Exports of Goods & Services 213.0 219.1 18.1 18.2 -1.3 2.9
6- Imports of Goods & Services 300.4 304.6 25.6 25.3 11.0 1.4
Source : Ministry of planning
-107- (1/2) GDP by Expenditure
Value at LE bn Structure (%) Growth Rate ( % )
July/ March ( At 2011/ 2012 prices )
2011 2012 2012 2013June March June March
General Index 100.00 114.5 122.6 122.8 131.9 7.1 7.4
Food & Non-Alcoholic Beverages 39.92 126.0 136.7 137.6 148.8 8.5 8.1
Alcoholic Beverages, Tobacco and Narcotics 2.19 169.9 201.8 201.8 217.4 18.8 7.7
Clothing & Footwear 5.41 102.2 106.8 106.8 110.4 4.5 3.4
Housing , Water, Electricity, Gas & Fuel 18.37 100.4 109.6 107.7 113.6 9.2 5.5
Furnishings, Household Equipment & Routine Maintenance of the House 3.77 105.2 110.6 114.4 118.8 5.1 3.8
Health Care 6.33 101.9 102.0 102.0 114.8 0.1 12.5
Transportation 5.68 101.7 104.5 104.5 106.5 2.8 1.9
Communications 3.12 100.0 95.5 95.5 95.5 -4.5 0.0
Recreation & Culture 2.43 108.4 115.6 117.8 125.2 6.6 6.3
Education 4.63 124.3 136.6 136.6 152.2 9.9 11.4
Restaurants & Hotels 4.43 112.4 115.5 116.5 138.2 2.8 18.6
Miscellaneous Goods & Services 3.72 103.2 105.0 104.5 105.7 1.7 1.1
Source: Central Agency for Public Mobilization and Statistics (CAPMAS) (Monthly CPI Bulletin).
* 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.
- 108 -
July/March 2011/2012 2012/2013
Groups
(1/3) Consumer Price Index (Urban) (Jan. 2010=100) *
Inflation Rate (%)Relative Weights
2011 2012 2012 2013June March June March
All Items 100.0 192.1 199.8 185.0 193.9 4.0 4.8
Agriculture, Forestry and Fishing 25.1 261.4 263.5 243.9 253.5 0.8 3.9
Mining and Quarrying 21.8 201.5 226.8 181.1 198.8 12.6 9.8
Manufacturing Industries 38.9 165.0 168.2 168.1 173.2 1.9 3.0
Electricity, Gas, Steam and Air Conditioning Supply 2.3 140.3 140.3 140.3 155.2 0.0 10.6
Water Supply, Sewerage, Waste Management and Remediation Activities 2.0 146.5 157.3 157.3 157.3 7.4 0.0
Transportation and Storage 2.8 127.3 131.1 131.1 131.1 3.0 0.0
Accommodation and Food Service Activities 5.0 125.1 128.6 129.3 136.2 2.8 5.3
Information and Communication Activities 2.1 112.5 112.5 112.5 112.5 0.0 0.0
Source: Central Agency for Public Mobilization and Statistics (CAPMAS) (Monthly PPI Bulletin issued every two months).
(1/4) Producer Price Index (2004/2005=100)
GroupsInflation Rate (%)
July/March 2011/2012 2012/2013
- 109 -
Relative Weights
2013March June March June March June March
Reserve Money 196106 203071 234900 250992 251302 263668 280996Currency in circulation outside CBE * 136438 144253 175647 179096 190951 204870 233733Banks' deposits in local currency 59668 58818 59253 71896 60351 58798 47263
Counterpart Assets 196106 203071 234900 250992 251302 263668 280996Net Foreign Assets 179809 190234 167446 147197 78891 76059 41282Foreign Assets 188132 198605 175498 156331 89185 92168 85362
Gold 9386 12393 12393 16343 16343 19979 19979Foreign securities 163029 162247 142807 114608 48393 51524 23885Foreign currencies 15717 23965 20298 25380 24449 20665 41498
Foreign Liabilities + 8323 8371 8052 9134 10294 16109 44080Net Domestic Assets 16297 12837 67454 103795 172411 187609 239714Net Claims on Government 85140 80611 108832 102562 178237 165374 273152
Claims; of which: 160335 150288 189583 189620 257827 256605 370307 Government securities 124559 121533 130596 130597 129097 178831 178831
Deposits 75195 69677 80751 87058 79590 91231 97155Net Claims on Banks 23841 29010 -1287 147 -1607 -2706 -2191
Claims 43764 49863 21375 23496 21748 22296 28539Deposits in foreign currencies 19923 20853 22662 23349 23355 25002 30730
Other Items (Net) + -92684 -96784 -40091 1086 -4219 24941 -31247Source : Central Bank of Egypt.* Including subsidiary coins & notes issued by the Ministry of Finance.
2011
- 110 -
End of2010
+ 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.
2012(LE mn)
(2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets
2013March June March June March June March
1- Domestic Liquidity 888176 917459 988076 1009411 1054996 1094408 1236938
A- Money Supply 201868 214040 240814 248707 260681 274510 326547Currency in circulation outside the banking system 128433 135209 163489 167887 180637 194027 221364
Demand deposits in local currency 73435 78831 77325 80820 80044 80483 105183
B- Quasi-Money 686308 703419 747262 760704 794315 819898 910391Time & saving deposits in local currency 528844 545303 567394 583732 610225 633858 690557
Demand and time & saving deposits in foreign currencies 157464 158116 179868 176972 184090 186040 219834
2- Counterpart Assets
Net foreign assets + 276379 282408 266036 253500 172180 157624 129346
Domestic credit 750883 775268 870469 892766 1035229 1072566 1280706
Other items (net) + -139086 -140217 -148429 -136855 -152413 -135782 -173114
Source : Central Bank of Egypt.
(LE mn)
20122010 2011
- 111 -
+ According to the new classification of SDR allocations referred to in table (2/1/1).
End of
(2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets
2013March June March June March June March
Total Deposits in Local Currency 602279 624134 644719 664552 690269 714341 795740
1- Demand Deposits 73435 78831 77325 80820 80044 80483 105183
Public business sector * 7195 8938 7041 6670 6035 7363 6267
Private business sector 37946 41246 40626 43324 40285 39083 58327
Household sector 28852 29510 30240 31645 34620 34944 41463
Minus: Purchased cheques & drafts 558 863 582 819 896 907 874
2- Time and Saving Deposits 528844 545303 567394 583732 610225 633858 690557
Public business sector * 24117 23788 23429 22608 16636 17480 17002
Private business sector 78548 73183 65456 60736 52883 53862 58779
Household sector 426179 448332 478509 500388 540706 562516 614776
Source : Central Bank of Egypt
(2/1/3) Banking Survey: Deposits in Local Currency - 112 -
2010End of
2011
* Including all public sector companies subject or not to Law No. 203 for 1991.
2012(LE mn)
2013March June March June March June March
Total Deposits in Foreign Currencies 157464 158116 179868 176972 184090 186040 219834
1- Demand Deposits 33857 33901 46257 41298 42991 44965 54749
Public business sector * 1122 1055 1366 1248 1416 980 1333
Private business sector 22900 22313 30550 26039 27388 29669 35320
Household sector 9950 10673 14387 14077 14397 14443 18267
Minus: Purchased cheques & drafts 115 140 46 66 210 127 171
2- Time and Saving Deposits 123607 124215 133611 135674 141099 141075 165085
Public business sector * 5885 5419 6105 6301 7501 7832 10249
Private business sector 33768 32594 35974 34202 37049 34827 42601
Household sector 83954 86202 91532 95171 96549 98416 112235
Source: Central Bank of Egypt
* Including all public sector companies subject or not to Law No. 203 for 1991.
- 113 -
2010End of
2011(LE mn)
2012
(2/1/4) Banking Survey: Deposits in Foreign Currencies
2013March June March June March June March
Net Foreign Assets 276379 282408 266036 253500 172180 157624 129346
1- Foreign Assets 312163 322209 311902 295480 211583 206964 206138
Central Bank of Egypt 188132 198605 175498 156331 89185 92168 85362
Banks 124031 123604 136404 139149 122398 114796 120776
2- Foreign Liabilities 35784 39801 45866 41980 39403 49340 76792
Central Bank of Egypt + 8323 8371 8052 9134 10294 16109 44080
Banks 27461 31430 37814 32846 29109 33231 32712
(LE mn)
+ According to the new classification of SDR allocations referred to in table (2/1/1).
Source: Central Bank of Egypt
2010End of
2011 2012
(2/1/5) Banking Survey: Foreign Assets and Liabilities - 114 -
2013March June March June March June March
1- Domestic Credit 750883 775268 870469 892766 1035229 1072566 1280706
Net claims on the government (A+B-C) 320885 326141 419024 437337 553186 578654 751663
A-Securities 437919 440410 520551 542792 593887 677139 746623
B-Credit facilities 68749 68140 97297 98826 163051 111362 226295
C-Government deposits 185783 182409 198824 204281 203752 209847 221255
Claims on public business sector * 36708 29985 33668 32981 41151 40620 44089
Claims on private business sector 303855 326350 321579 323241 331650 340865 360815
Claims on household sector 89435 92792 96198 99207 109242 112427 124139
2- Other Items (Net) -139086 -140217 -148429 -136855 -152413 -135782 -173114Capital accounts+ -150019 -170877 -150701 -146543 -158620 -168778 -192905
Net unclassified assets and liabilities 10933 30660 2272 9688 6207 32996 19791
Source: Central Bank of Egypt
* Including all public sector companies subject or not to Law No. 203 for 1991.
End of 2010 2011 2012(LE mn)
(2/1/6) Banking Survey: Domestic Credit and Other Items (Net)
+ According to the new classification of SDR allocations referred to in table (2/1/1).
- 115 -
2013March June March June March June March
Total Saving Vessels 773954 884085 933166 955163 992567 1028953 1140203
Savings at the Banking System 686308 703419 747262 760704 794315 819898 910392
Time & saving deposits in local currency 528844 545303 567394 583732 610225 633858 690557
Demand and time & saving deposits in foreign currencies 157464 158116 179868 176972 184090 186040 219835
Net Sales of Investment Certificates 87646 90931 93843 94428 96999 97745 116321
Post Office Saving Deposits Not Available 89735 92061 100031 101253 111310 113490
Source: Central Bank of Egypt
-116 -
2010End of
2011 2012(LE mn)
(2/1/7) Total Saving Vessels
2013March June March June March June March
Total 36371 29812 33576 32688 40939 40417 43858
In Local Currency 27493 21051 24898 24560 32118 31581 34634
Agriculture 2 3 95 105 45 - -
Manufacturing 12525 9258 10757 10167 14755 14465 16102
Trade 4722 1737 1077 918 1634 1651 1727
Services 10244 10053 12969 13370 15684 15465 16805
In Foreign Currencies 8878 8761 8678 8128 8821 8836 9224
Agriculture - - - - - - -
Manufacturing 3832 3294 2752 2237 2039 1938 1400
Trade 1526 1566 968 934 957 955 851
Services 3520 3901 4958 4957 5825 5943 6973
Source: Central Bank of Egypt
*Including all public sector companies subject or not to Law No. 203 for 1991.
End of
- 117 -
2010 2011 2012(LE mn)
(2/1/8) Bank Lending and Discount Balances to Business Sector
Public Business Sector *
2013March June March June March June March
Total 265154 287148 282338 284755 295109 304386 321226
In Local Currency 171165 185694 179876 187810 198576 207334 210585
Agriculture 4051 4461 5373 6294 4091 4573 5146
Manufacturing 72292 76229 74829 78448 87615 92476 92157
Trade 39105 49486 37117 36265 37643 39245 42246
Services 55717 55518 62557 66803 69227 71040 71036
In Foreign Currencies 93989 101454 102462 96945 96533 97052 110641
Agriculture 1607 1534 2331 2314 1739 1398 1469
Manufacturing 47755 53355 52229 48550 50613 52260 60261
Trade 13525 13563 10685 9508 8099 7616 9253
Services 31102 33002 37217 36573 36082 35778 39658
Source: Central Bank of Egypt
(LE mn)
Private Business Sector
2010
- 118 -
End of 2011 2012
(2/1/8) Bank Lending and Discount Balances to Business Sector (Contd.)
Number of BranchesNumber of Banks Operating in EgyptEnd of
349039 March 2010
350239 June 2010
356239 March 2011
357339 June 2011
361339 March 2012
361040* June 2012
365040 March 2013
* 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 the Egyptian Banking System
Source : Central Bank of Egypt.
- 119 -
Fund Name Fund Manager Par Value (LE)
Document Value (LE) at End of June 2012
Document Value (LE) at End of March 2013
Open-end Balance FundsNational Bank of Egypt I + Al Ahly Funds Management 10 34.54 35.53Banque Misr I Misr Capital Investments 100 91.50 98.27National Bank of Egypt II Al Ahly Funds Management 100 68.91 71.10El Watany Bank of Egypt NBK Capital Asset Management - Egypt 100 127.76 144.31National Bank of Egypt V Al Ahly Funds Management 10 8.32 8.68Al-Massi Hermes Funds Management 100 95.83 106.88Kheir Fund Acumen Asset Management 10 9.89 11.34Credit Agricole Egypt IV (Al Theqa) HC Securities 100 110.34 119.14NSGB (Tawazon) Beltone Asset Management 100 89.28 104.51
Open-end Equity FundsCredit Agricole Egypt I Hermes Funds Management 100 157.71 167.85Bank of Alexandria I Hermes Funds Management 100 143.31 155.85Arab Misr Insurance Group ++ Prime Investments Fund Management 100 136.88 143.70Banque Misr II Misr Capital Investments 67 40.15 44.69Banque de Caire Hermes Funds Management 10 38.50 43.50Export Development Bank I ( El-Khabeer) HC Securities 33 52.68 56.48Suez Canal Bank I HC Securities 500 213.21 228.18Credit Agricole Egypt II Hermes Funds Management 100 77.08 82.94Egyptian Gulf Bank Hermes Funds Management 100 100.56 111.35Banque Misr III HC Securities 100 301.22 332.66Shield Fund +++ Arab African Investment Management 50 98.61 96.45Misr Iran Development Bank I HC Securities 100 261.91 280.33National Bank of Egypt III++++ HC Securities 100 57.87 60.67Commercial International Bank II (Istethmar) CI Asset Management 100 54.65 58.61Piraeus Bank-Egypt I Piraeus Bank- Egypt Asset Management 100 90.75 99.75Housing & Development Bank (Al-Taameer) Prime Investments Fund Management 100 89.72 97.21ABC Bank Delta Rasmala Funds Management 100 72.31 80.02Suez Canal Bank II (Al-Agyal) Beltone Asset Management 10 6.97 7.06Blom Bank Prime Investments Fund Management 100 90.44 97.48Pharos Fund I Pharos Asset Management 100 81.86 93.99Pioneers Fund I (Al-Raeed) Amwal for Financial Investments 100 78.13 78.76Ahly United Bank (Alfa) Cairo Funds Management 10 - 10.05Misr Al Mostakbal HC Securities 10 12.00 13.62Belton Traded Equity Fund (Insight) Beltone Asset Management 10 5.87 6.26NSGB (Tadawol) HC Securities 100 103.02 114.60
Open-end Fixed Income FundsCredit Agricole Egypt III Egyptian Fund Management Group 1000 1052.91 1025.71Misr Money Market Beltone Asset Management 10 19.23 20.86Commercial International Bank I (Osoul) CI Asset Management 100 183.47 199.36Misr Iran Development Bank II HC Securities 1000 1000.00 1023.95Bank of Alexandria II EFG-Hermes 10 16.70 18.11National Bank of Egypt IV Al Ahly Funds Management 100 162.31 174.95National Societe Generale Bank (Themar) EFG-Hermes 100 159.86 173.31Export Development Bank II Delta Rasmala Funds Management 100 158.57 171.55ABC Bank ( Mazaya ) Beltone Asset Management 10 12.87 13.95HSBC Egypt Bank Fund (Kol Youm) Beltone Asset Management 100 129.54 140.55AAIB( Juman) Arab African Investment Management 100 128.95 139.54Piraeus bank- Egypt II Piraeus Bank- Egypt Asset Management 10 12.76 13.77Audi Bank Fund EFG-Hermes 10 12.81 13.89Banque du Caire II (El Kahera El Youmy) Beltone Asset Management 10 12.53 13.60Blom Bank Fund II CI Asset Management 100 126.07 137.03Al Watany Bank of Egypt Fund (Eshrak) NBK Capital Asset Management - Egypt 10 12.19 13.20Arab Bank Fund (Youmati) Beltone Asset Management 10 12.20 13.24Housing & Development Bank (Mawared) Prime Investments Fund Management 10 12.03 13.02Bank of Alexandria III EFG-Hermes 10 11.79 12.71Prinicipal Bank for Development & Agricultural Credit (Hasad) HC Securities 10 11.99 12.94Arab Investment Bank Fund I EFG-Hermes 10 11.89 12.91Egyptian Gulf Bank Fund (Tharaa) Prime Investments Fund Management 10 10.71 11.36Ahli United Bank (Tharwa) Cairo Funds Management 100 103.47 111.98CIB (El Thabet) CI Asset Management 100 108.54 119.32Al Watany Bank of Egypt Fund (Namaa) NBK Capital Asset Management - Egypt 10 10.62 11.08National Bank of Egypt VIII Ahly Funds Managements 1000 1043.28 1123.90Arab Investment Bank Fund III (Sanady) HC Securities 10 10.67 10.18AAIB (Gozoor) Arab African Investment Management 10 10.28 11.26EDBE III (Al Zahabi) Prime Investments Fund Management 100 102.16 111.85Banque du Caire (Al Thabet) CI Asset Management 100 - 101.17Egyptian Arab Land Bank Fund Alpha Capital 100 - 100.56
- 120 -
(2/2/2) Local Mutual Funds Authorized and Operating as at 31/3/2013
Fund Name Fund Manager Par Value (LE)
Document Value (LE) at End of June 2012
Document Value (LE) at End of March 2013
Open-end Islamic Fixed Income Money Market FundsThe United Bank Fund (Al Rakhaa) CI Asset Management 100 101.10 109.14
Open-end Islamic FundsFaisal Islamic Bank EFG-Hermes 100 70.44 71.95Al Baraka Bank Egypt EFG-Hermes 100 53.05 54.49Faisal Islamic Bank - CIB (Al Amman) CI Capital Asset Management 100 39.96 40.42Banque Misr IV HC Securities 100 61.10 64.30Sanabel Fund+++++ Prime Investments Fund Management 100 71.46 75.91Egyptian Saudi Finance -National Bank of Egypt (Bashayer) Al Ahly Fund Management 100 60.77 61.24El Watany Bank of Egypt (Alhayah) NBK Capital Asset Management - Egypt 10 8.94 9.98Arab Investment Bank Fund II (Helal) Cairo Funds Management 100 103.42 105.68Naeem Misr Fund Naeem for Financial Investments 100 108.64 120.81Al Wefak HC Securities 10 8.79 9.47
Mixed Income FundsAl Rabeh Fund Prime Investments Fund Management 100 102.37 107.40
Open-end Islamic Balanced Funds
Al Baraka Bank - Egypt (Al Motawazen) AT. Asset Management 100 84.91 85.14
Closed-end Funds
Orient Trust ++++++ Egyptian Investment & Finance Co. 1000 1134.38 -Arab Land Direct Prime Investments Fund Management 1000 685.51 686.95
Capital Guaranteed FundsMisr Bank (El Omr Fund) Cairo Funds Management 100 253.62 265.74
Capital Protected FundsCIB Fund (Hamaya) CI Capital Asset Management 100 112.05 120.21
Asset Allocator FundsSociete Arab Int'l Banque I +++++++ Prime Investments Fund Management 100 387.21 397.89Societe Arab Int'l Banque II Prime Investments Fund Management 100 265.40 273.07
Foreign Currency FundsMisr Money Market ($) Beltone Asset Management 10$ 10.75$ 10.83$Misr Money Market (Euro) Beltone Asset Management 10 € 10.83 € 10.87 €
Fund of FundsMisr Iran Development Bank III (Wafi) El Rashad Asset Management 10 8.21 9.03National Bank of Egypt VI El Rashad Asset Management 100 76.89 80.57
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. ++++++ EGX has decided to suspend trading on the fund's certificates effective 21/02/2013 till the company sends the certificate's net asset value.+++++++ 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.
- 121 -
(2/2/2) Local Mutual Funds Authorized and Operating as at 31/3/2013 (Contd.)
2013March June March June March June March
Currency by Denomination + 138731 145914 177378 179794 193561 207473 236303
PT 25 189 184 168 161 150 147 143
PT 50 290 294 307 303 298 296 292
LE 1 797 845 917 909 893 890 905
LE 5 1646 1619 3083 2738 2348 1944 2039
LE 10 3061 2930 3313 2983 3139 2940 3149
LE 20 5926 5619 10524 9950 8542 7809 6906
LE 50 19360 18836 23650 22350 20223 21720 22589
LE 100 67161 69299 73408 73444 73723 83606 96395
LE 200 40301 46288 62008 66956 84245 88121 103885
Source: Central Bank of Egypt
+ Including coins of PT 25,50 and 100 denominations
End of
- 122 -
2010 2011 2012(LE mn)
(2/3/1) Note Issued by Denomination
2013March June March June March June March
Total 136438 144253 175647 179096 190951 204870 233733
Subsidiary Coins & Notes* 301 306 319 324 345 351 368
PT 25 189 184 168 161 150 147 142
PT 50 290 292 306 302 298 296 291
LE 1 795 843 914 907 890 888 902
LE 5 1593 1495 2996 2654 2283 1897 1884
LE 10 2970 2844 3209 2886 3024 2797 2968
LE 20 5690 5480 10211 9672 8225 7527 6628
LE 50 19226 18704 23368 22246 19735 20629 22222
LE 100 65931 68641 72676 73269 72941 82961 95392
LE 200 39453 45464 61480 66675 83060 87377 102936
Source: Central Bank of Egypt
* Issued by the Ministry of Finance
End of 2010 2011 2012(LE mn)
(2/3/2) Currency in Circulation Outside CBE by Denomination- 123 -
During
2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2011/2012 2012/2013
Local Currency Transactions via RTGS*1- Automated Clearing House (ACH)
Number of transactions (thousand) 11724 12062 12994 13012 12829 9509 9838Value of transactions (LE mn) 483113 548038 584546 626757 661196 484882 525523
2- Other Transactions via RTGS** 700668 897205 1191374 1248692 1298763 965478 953224
Number of transactions (in unit) 3092401 5294357 13274676 15879701 9402300 6858343 8872451Value of transactions (LE mn)
Foreign Currency Transfers (Dollar Interbank Transactions) via the Fin-Copy System*** Number of transactions (in unit) 13925 12365 12204 15066 14080 10592 8649 Value of transactions (US$ mn) 105587 83019 70008 88052 62321 47940 31529
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
July/March
- 124 -
Fiscal Year
2013March June March June March June March
A- AssetsCash 10926 12448 16241 14830 13919 14534 18855
Securities & investments in TBs 372284 405895 451399 474176 522954 555326 629476
Balances with banks in Egypt, of which: 197135 200719 137191 117010 108511 104269 121685
Loans and discounts 678 729 905 885 857 978 936
Balances with banks abroad, of which: 87540 57371 92319 96080 82293 75905 80706
Loans and discounts 1514 2004 1365 1398 2845 2714 2555
Loan and discount balances 441370 465990 469961 474139 495878 506736 536748
Other assets 88985 78232 106432 93455 124890 109390 144415
Assets =Liabilities 1198240 1220655 1273543 1269690 1348445 1366160 1531885
B- LiabilitiesCapital 43571 46598 52508 59049 60374 67345 71607Reserves 27432 28486 31031 22056 24465 25539 35953
Provisions 71168 70418 55338 55106 55795 54127 60634
Bonds & Long-term loans 21360 21697 25696 26180 27295 27840 30096
Obligations to banks in Egypt 47572 53881 26306 28171 21947 19009 24186
Obligations to banks abroad 18383 20305 20481 15168 12330 14792 14943
Total deposits 867053 892492 940849 957037 996212 1023517 1144340
Other liabilities, of which: 101701 86778 121334 106923 150027 133991 150126
Cheques payable 4086 4764 4192 5143 5447 4848 5395
Source : Central Bank of Egypt
(2/4/1) Banks: Aggregate Financial Position
End of
- 125 -
2011 2012( LE mn )
2010
2013March June March June March June March
Total Deposits 867053 892492 940849 957037 996212 1023517 1144340
Demand deposits 115031 119518 131661 130087 130647 133705 172093
Time & saving deposits and saving accounts 719306 738650 773146 789407 830698 851116 932441
Blocked or retained deposits 32716 34324 36042 37543 34867 38696 39806
Local Currency Deposits 664902 686052 706785 724878 754838 777806 864118
Demand deposits 79911 84152 83493 86967 85536 86742 114939
Time & saving deposits and saving accounts 563845 580020 601505 615839 647224 666995 725394
Blocked or retained deposits 21146 21880 21787 22072 22078 24069 23785
Foreign Currency Deposits 202151 206440 234064 232159 241374 245711 280222
Demand deposits 35120 35366 48168 43120 45111 46963 57154
Time & saving deposits and saving accounts 155461 158630 171641 173568 183474 184121 207047
Blocked or retained deposits 11570 12444 14255 15471 12789 14627 16021
Source : Central Bank of Egypt
- 126 -
2011End of
2012( LE mn )
(2/4/2) Banks: Deposits by Maturity
2010
2013March June March June March June March
Total Deposits 867053 892492 940849 957037 996212 1023517 1144340
Local Currency Deposits 664902 686052 706785 724878 754838 777806 864118
Government sector 59471 58496 58516 56728 60895 58930 63827
Public business sector * 31311 32726 30469 29278 22672 24843 23269
Private business sector 116438 114372 106033 103965 92955 92697 116875
Household sector 455030 477842 508749 532032 575326 597459 656238
External sector ** 2652 2616 3018 2875 2990 3877 3909
Foreign Currency Deposits 202151 206440 234064 232159 241374 245711 280222
Government sector 42398 45618 50625 51403 53652 55731 55996
Public business sector * 7006 6474 7470 7549 8917 8812 11582
Private business sector 56673 54907 66525 60241 64437 64496 77921
Household sector 93899 96875 105919 109248 110947 112859 130502
External sector** 2175 2566 3525 3718 3421 3813 4221
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 - 127 -
2011End of 2012( LE mn )
2010
2013March June March June March June March
Total Deposits 867053 892492 940849 957037 996212 1023517 1144340
Local Currency Deposits 664902 686052 706785 724878 754838 777806 864118
Agriculture 4255 5072 4169 3792 3015 2820 3204
Manufacturing 39562 38302 40929 38119 32949 31985 45033
Trade 26353 27829 25216 24304 20684 21097 26324
Services 66373 64895 61779 62311 55300 55171 65192
Unclassified sectors 528359 549954 574692 596352 642890 666733 724365
Foreign Currency Deposits 202151 206440 234064 232159 241374 245711 280222
Agriculture 658 930 863 771 1035 935 1552
Manufacturing 23449 23772 30046 24876 28385 27775 35685
Trade 12298 11065 14925 14182 14300 15014 15841
Services 26746 25767 27978 28529 26820 27432 32023
Unclassified sectors 139000 144906 160252 163801 170834 174555 195121
Source : Central Bank of Egypt
(2/4/4) Banks: Deposits by Economic Activity - 128 -
2011End of
2012( LE mn )
2010
2013March June March June March June March
Total 372284 405895 451399 474176 522954 555326 629476
In Local Currency 336297 338834 421120 442648 470995 494934 551245
Government sector 299555 303297 385777 407814 437706 461821 515007
Public business sector * 1350 1052 1069 980 853 714 686
Private business sector 35295 34394 34184 33764 32349 32310 35469
Household sector - - - - - - -
External sector 97 91 90 90 87 89 83
In Foreign Currencies 35987 67061 30279 31528 51959 60392 78231
Government sector 13804 15579 4161 4382 27085 36488 52785
Public business sector * - - - - - - -
Private business sector 6147 5597 5756 5475 4730 4708 4650
Household sector - - - - - - -
External sector 16036 45885 20362 21671 20144 19196 20796
Source : Central Bank of Egypt
* Including all public sector companies subject or not to Law No. 203 for 1991.
(2/4/5) Banks: Portfolio Investments by Sector - 129 -
2011End of
2012( LE mn )
2010
2013March June March June March June March
Total 441370 465990 469961 474139 495878 506736 536748
In Local Currency 300929 313654 317868 327764 354274 364175 379361
Government sector 14011 15389 18753 18191 15878 14615 11867
Public business sector * 27493 21051 24898 24560 32118 31581 34634
Private business sector 171165 185694 179876 187810 198576 207334 210585
Household sector 86953 90266 93281 96112 106927 109738 121801
External sector 1307 1254 1060 1091 775 907 474
In Foreign Currencies 140441 152336 152093 146375 141604 142561 157387
Government sector 18962 23995 19558 21611 18442 18974 22951
Public business sector * 8878 8761 8678 8128 8821 8836 9225
Private business sector 93989 101454 102461 96945 96533 97052 110641
Household sector 2482 2526 2918 3095 2315 2690 2337
External sector 16130 15600 18478 16596 15493 15009 12233
Source : Central Bank of Egypt
*Including all public sector companies subject or not to Law No. 203 for 1991.
- 130 -
2011End of
2012( LE mn )
(2/4/6) Banks: Lending and Discount Balances by Sector
2010
2013March June March June March June March
Total 813654 871885 921360 948315 1018832 1062062 1166224
In Local Currency 637226 652488 738988 770412 825269 859109 930606
Government sector 313566 318686 404530 426005 453584 476436 526874
Public business sector * 28843 22103 25967 25540 32971 32295 35320
Private business sector 206460 220088 214060 221574 230925 239644 246054
Household sector 86953 90266 93281 96112 106927 109738 121801
External sector 1404 1345 1150 1181 862 996 557
In Foreign Currencies 176428 219397 182372 177903 193563 202953 235618
Government sector 32766 39574 23719 25993 45527 55462 75736
Public business sector * 8878 8761 8678 8127 8821 8836 9225
Private business sector 100136 107051 108217 102420 101263 101760 115291
Household sector 2482 2526 2918 3095 2315 2690 2337
External sector 32166 61485 38840 38268 35637 34205 33029
Source : Central Bank of Egypt
* Including all public sector companies subject or not to Law No. 203 for 1991.
2012
- 131 -
2011( LE mn )
(2/4/7) Banks: Credit by Sector
End of 2010
2013March June March June March June March
Total 441370 465990 469961 474139 495878 506736 536748
In Local Currency 300929 313654 317868 327764 354274 364175 379361
Agriculture 4420 4856 5508 6800 4136 4822 5146
Manufacturing 93480 94810 98412 100646 113010 116282 115799
Trade 43843 51241 38198 37186 39335 41012 44013
Services 70772 70931 81093 85578 89733 91062 91779
Unclassified sectors 88414 91816 94657 97554 108060 110997 122624
In Foreign Currencies 140441 152336 152093 146375 141604 142561 157387
Agriculture 1627 1554 2330 2314 1739 1398 1739
Manufacturing 69242 79423 72731 70744 69610 71868 82952
Trade 15057 15134 11653 10445 9056 8571 10104
Services 35901 38084 43977 43180 43391 43024 48022
Unclassified sectors 18614 18141 21402 19692 17808 17700 14570
Source : Central Bank of Egypt
- 132 -
2011End of
2012( LE mn )
(2/4/8) Banks: Lending and Discount Balances by Economic Activity
2010
More than one-month and less than or equal
to three- month deposits
More than three-month and less than or equal to six-year
deposits
More than six-month and less than or equal to one-year
deposits
Less than or equal to one-
year loans
SimpleReturn
of increasing certificate
value
January 2010 8.50 5.90 6.40 6.70 11.10 9.50 9.00 9.00February ,, 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 ,, ,, ,,July ,, 7.70 7.70 8.50 12.00 ,, ,, ,,August ,, 7.70 7.70 8.60 12.00 ,, ,, ,,September ,, 7.70 7.80 8.80 12.00 ,, ,, ,,October ,, 7.70 7.90 8.80 12.00 ,, ,, ,,November ,, 7.70 7.90 8.90 12.10 ,, ,, ,,December ,, 7.60 7.90 9.00 12.20 ,, ,, ,,
January 2013 ,, 7.60 7.80 9.00 12.10 ,, ,, ,,February ,, 7.80 7.80 9.10 12.20 12.50 12.00 ,,March 10.25 7.80 7.80 9.10 12.30 12.50 12.00 ,,
Source: Central Bank of Egypt and the Egyptian National Post Authority
* As of June 2010, maturities were changed and interest rate data (deposits and loans) were collected using the Domestic Money Market Supervision (DMMS) system.
(2/5/1) Discount and Interest Rates on Deposits and Loans
End of Discount Rate
- 133 -
(% 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 EuroMin. Max. Min. Max. Min. Max.
January 2010 0.11 0.24 0.15 0.43 0.18 0.49
February 0.11 0.25 0.16 0.45 0.18 0.48
March 0.13 0.28 0.16 0.45 0.17 0.47
April 0.15 0.32 0.17 0.46 0.18 0.47
May 0.24 0.53 0.18 0.5 0.19 0.51
June 0.24 0.53 0.18 0.51 0.2 0.53
July 0.21 0.47 0.19 0.52 0.25 0.66
August 0.14 0.30 0.18 0.50 0.25 0.66
September 0.13 0.28 0.18 0.51 0.25 0.66
October 0.13 0.28 0.18 0.52 0.29 0.78
November 0.13 0.28 0.18 0.52 0.29 0.78
December 0.14 0.30 0.19 0.53 0.28 0.75
January 2011 0.14 0.30 0.19 0.54 0.30 0.79
February 0.14 0.31 0.20 0.56 0.31 0.83
March 0.14 0.30 0.20 0.57 0.35 0.93
April 0.12 0.27 0.2 0.57 0.4 1.06
May 0.11 0.25 0.21 0.58 0.41 1.11
June 0.11 0.24 0.21 0.58 0.44 1.18
July 0.11 0.25 0.21 0.58 0.47 1.25
August 0.14 0.31 0.22 0.61 0.44 1.18
September 0.16 0.36 0.24 0.66 0.45 1.19
October 0.19 0.41 0.25 0.69 0.46 1.22
November 0.23 0.49 0.26 0.72 0.42 1.13
December 0.26 0.56 0.27 0.75 0.40 1.07
January 2012 0.25 0.55 0.27 0.76 0.33 0.88
February 0.22 0.48 0.27 0.75 0.29 0.76
March 0.21 0.46 0.26 0.72 0.21 0.56
April 0.21 0.46 0.25 0.71 0.20 0.52
May 0.21 0.46 0.25 0.70 0.18 0.48
June 0.21 0.45 0.23 0.63 0.17 0.45
July 0.20 0.44 0.19 0.54 0.09 0.25
August 0.19 0.41 0.17 0.48 0.05 0.14
September 0.16 0.36 0.15 0.43 0.05 0.12
October 0.14 0.31 0.13 0.37 0.04 0.11
November 0.14 0.31 0.13 0.37 0.04 0.10
December 0.14 0.30 0.13 0.36 0.04 0.10
January 2013 0.14 0.29 0.13 0.36 0.04 0.12
February 0.13 0.28 0.13 0.36 0.04 0.10
March 0.13 0.28 0.13 0.35 0.04 0.11
Source: National Bank of Egypt
End of
- 134 -
(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
Jan . 2013First week (1/1) 0.000 0.000 0.000 13.794 0.000 0.000Second week (8/1) 13.581 14.104 14.429 0.000 14.320 0.000Third week (15/11) 13.441 13.970 0.000 14.403 0.000 14.503Fourth week (22/1) 12.884 13.725 13.692 0.000 14.054 0.000 (29/1) 12.825 13.607 0.000 14.020 0.000 14.004
Monthly Average 13.183 13.852 14.061 14.072 14.187 14.254
Feb. 2013
First week (5/2) 12.914 13.539 13.972 0.000 14.054 0.000Second week (12/2) 12.872 13.556 0.000 13.974 0.000 14.072Third week (19/2) 12.776 13.419 13.841 0.000 14.003 0.000
Fourth week (26/2) 12.723 13.342 0.000 13.823 0.000 13.957
Monthly Average 12.821 13.464 13.907 13.899 14.029 14.015
March 2013
First week (5/3) 12.711 13.338 0.000 13.749 13.968 0.000Second week (12/3) 12.616 13.260 0.000 13.623 0.000 13.908
Third week (19/3) 12.471 13.127 13.478 0.000 13.776 0.000
Fourth week (26/3) 12.868 13.031 0.000 13.934 0.000 13.680 (31/3) 0.000 13.031 0.000 0.000 0.000 0.000
Monthly Average 12.667 13.157 13.478 13.769 13.872 13.794
Source: Central Bank of Egypt.
(2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages)
- 135 -
2013End of March June March June March June March
Number of Companies (in Unit) 219 215 212 211 213 212 211Number of Shares (mn) 26570 29002 32110 32364 40105 40019 40129Nominal Value of Capital (LE mn) 130661 134748 N.A* 144699 150118 150106 151338Market Value of Capital (LE mn) 460653 410144 407736 399756 362468 339768 354950
The Market of Medium and Small Enterprises (Nilex)**
Number of Companies (in Unit) 10 18 18 20 21 21Number of Listed Shares (mn) 49 106 152 169 190 202Total Value of Traded Shares (LE mn) 83 25 14 31 7 16Market Value of Capital (LE mn) 407 966 1007 1066 1093 1008
The Egyptian Exchange Indices***
EGX 20 Capped 7966.4 6925.6 6062.4 5888.1 5813.3 5452.0 5856.5EGX 30 6806.1 6033.1 5463.7 5373.0 5018.6 4708.6 5098.8EGX 70 715.2 527.7 575.0 629.6 453.0 422.0 441.5EGX 100 1160.8 908.7 924.3 972.9 791.5 729.5 737.3
Source: Monthly Bulletin of Egyptian Exchange.
* The number is not available because the Egyptian Exchange was closed during the period 28/1- 22/3/2011 in the wake of the revolution of 25th of January.
** 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 on the Egyptian Exchange . The index was computed as of the 1st of February 2003.
- 136 -
(3/1) Companies Listed on the Egyptian Exchange
2010 2011 2012
Number of Transactions
(Unit)
Amount (Thousand)
Market Value (mn)
Number of Transactions
(Unit)
Amount (Thousand)
Market Value (mn)
Shares in (Egyptian Pound) 4190151 16318160 77074 4461215 27094626 111629
Floor Transactions 4144559 15483859 65513 4438174 26103252 98391
Over the Counter Trading 45592 834301 11561 23041 991374 13238
Shares in Foreign Currencies
(US Dollar) 101050 445094 567 84694 419371 584
Floor Transactions 99957 410137 374 84208 382021 291
Over the Counter Trading 1093 34957 193 486 37350 293
(Euro) 9 1018 10 13 1 0.1
Floor Transactions 0 0 0 0 0 0
Over the Counter Trading 9 1018 10 13 1 0.1
(Sterling Pound) 1 132 0.1 0 0 0
Floor Transactions 0 0 0 0 0 0
Over the Counter Trading 1 132 0.1 0 0 0
- 137 -
During July/March
(3/2) Trading in Shares on the Egyptian Exchange
2011/2012
Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.
2012/2013
Number of Transactions Amount Market Value Number of
Transactions Amount Market Value
(Thousand) (Thousand)
Bonds in (Egyptian Pound) 676 18218857 15637668 697 26291770 27781085Floor Transactions 676 18218857 15637668 697 26291770 27781085
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
- 138 -
2011/2012
(Unit)
During July/March
(3/3) Trading in Bonds on the Egyptian Exchange
Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.
2012/2013
(Unit)
Egyptian Pound US Dollar Egyptian
Pound US Dollar
Net Number of Transactions (unit) -48096 -6698 4113 5026Purchases 507969 16305 550679 15424Sales 556065 23003 546566 10398
Net Volume of Securities (mn) -168 -17 -261 7Purchases 2621 78 4446 61Sales 2789 95 4707 54
Net Value of Securities (mn) 548 -29 1332 16Purchases 20050 99 38820 69Sales 19502 128 37488 53
- 139 -
During July/March
(3/4) Foreigners' Transactions on the Egyptian Exchange
2011/2012
Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.
2012/2013
June-12 Mar-13 June-12 Mar-13
Comercial International Bank / Egypt (CIB) July-96 Bank of New York CIB / HSBC 1.00 9999 4.27 4.14 25.96 29.97Suez Cement July-96 Bank of New York CIB / HSBC 1.00 7310 7.50 3.65 21.00 22.14Paints & Chemicals Industries (Pachin) Oct.-97 Bank of New York CIB / HSBC 3.00 6297 1.51 2.60 31.70 40.00EFG-Hermes Aug.-98 Bank of New York HSBC / CIB 0.50 4324 3.30 3.20 10.15 9.74Ezz Steel June-99 Bank of New York CIB / HSBC 0.33 573 32.00 32.00 6.99 9.11Orascom Telecom Holding (OT)* July-00 Bank of New York CIB / HSBC 0.20 11713 2.50 3.18 3.04 4.37Orascom Construction Industries (OCI)** Aug.-02 Bank of New York CIB / HSBC 1.00 50 40.50 34.58 248.57 237.30 Egypt Lebanon Ceramics (Lecico) Nov.-04 Bank of New York CIB / HSBC 1.00 8796 3.50 3.50 5.53 8.02Telecom Egypt Dec.-05 Bank of New York CIB / HSBC 0.20 8522 10.80 11.00 13.30 13.12Naeem Holding Feb.-08 Bank of New York CIB / HSBC 0.25 5625 - - 0.25 0.30Palm Hills Development May-08 Bank of New York CIB / HSBC 0.20 5435 4.80 4.80 1.92 1.97G B Auto May-09 Bank of New York CIB 0.20 100 - - 20.84 28.02Remco for Touristic Villages Construction May-10 JPMorgan HSBC 0.20 1000 - - 2.01 2.02Orascom Telecom Media and Technology Jan-12 Bank of New York CIB / HSBC 0.20 807593 - - 1.48 0.72Source: Monthly Bulletin of the Egyptian Exchange.
* The conversion ratio has changed to be 5 shares: 1 GDR, as of 12 April 2007.
** The conversion ratio has changed to be 1 share: 1 GDR, as of 7 May 2009.
Depository BankSub
Custodian Bank
Conversion Ratio
Volume on Offering Date
(000s)
(3/5) Global Depository Receipts (GDRs)
- 140 -
GDRs Listed on Global Exchanges Corporate Stocks
Issued on EgyptianExchange
Company Order & Date of Offering
Price ($) at end of Price (LE) at end of
(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 0 2785 40665 43202 60585 3500 349928
Dec. 26500 73850 1325 18250 40250 44312 0 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
Sept. 15500 72475 - - 48882 73250 - - 3270 70820 93358 - 377555
Dec. 12900 77900 - 0 50073 65298 - - - 79313 98258 - 383742
2013
March 14000 81000 - - 56073 69797 - - - 83000 102236 - 406106
- 141 -
Source : Central Bank of Egypt.
(3/6) Outstanding Balance of Treasury Bills (Quarterly)
(LE mn)
91 days 182 days 266 days 273 days 357 days 364 days Total
Jan . 2013First week (1/1) 11900 74900 50073 62797 76968 96215 372853Second week (8/1) 12900 74400 50073 59297 79468 96215 372353Third week (15/11) 12900 74900 50073 62797 76468 96215 373353Fourth week (22/1) 12400 74900 51573 59297 80468 96215 374853
End of month 12150 75400 51573 62797 80468 99215 381603
Feb. 2013
First week (5/2) 12250 73900 55073 61297 81500 97236 381256Second week (12/2) 12750 74400 51073 62297 81500 101236 383256Third week (19/2) 13250 74900 55073 62297 83000 97736 386256Fourth week (26/2) 13250 75400 53573 63797 83000 101736 390756End of month 13250 75400 53573 63797 83000 101736 390756
March 2013
First week (5/3) 14000 75900 53573 67797 82500 98236 392006Second week (12/3) 14000 76400 52073 68797 82500 102236 396006Third week (19/3) 14000 76900 56073 68797 83000 98736 397506Fourth week (26/3) 14000 77400 56073 69797 83000 102236 402506
End of month 14000 81000 56073 69797 83000 102236 406106
Source: Central Bank of Egypt.
(3/7) Outstanding Balance of Treasury Bills (Weekly)
- 142 -
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
Twenty First 15/11/2005 5.0 9.300 10 years 15/11/2015
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 28/07/2009 6.0 10.800 4 years 28/07/2013
Fourty Fourth 15/09/2009 5.1 10.900 5 years 15/09/2014
Fourty Fifth 29/09/2009 6.0 10.900 4 years 29/09/2013
Fourty Sixth 24/11/2009 2.0 12.170 4 years 24/11/2013
Fourty Seventh 08/12/2009 6.5 12.500 5 years 08/12/2014
Fourty Eighth 15/12/2009 5.1 12.800 6 years 15/12/2015
Fiftieth 16/02/2010 13.5 12.600 7 years 16/02/2017
Fifty First 02/03/2010 10.0 12.250 5 years 02/03/2015
Fifty Second 06/04/2010 9.5 11.350 3 years 06/04/2013
Fifty Third 06/07/2010 10.0 11.550 3 years 06/07/2013
Fifty Fourth 20/07/2010 7.5 12.550 5 years 20/07/2015
Fifty Fifth 03/08/2010 5.5 13.000 10 years 03/08/2020
Fifty Sixth 05/10/2010 11.5 11.600 3 years 05/10/2013
Fifty Seventh 19/10/2010 7.5 12.350 5 years 14/09/2015
Fifty Eighth 18/01/2011 3.0 11.630 3 years 18/01/2014
Fifty Nineth 26/07/2011 8.0 13.100 2 years 26/07/2013
Sixtieth 02/08/2011 10.0 13.350 3 years 02/08/2014
Sixty first 18/10/2011 7.5 14.000 3 years 18/10/2014
Sixty second 25/10/2011 3.9 14.500 7 years 25/10/2018
Sixty third 25/10/2011 6.8 14.250 5 years 25/10/2016
Sixty fourth 17/01/2012 10.5 16.150 3 years 17/01/2015
Sixty fifth 17/01/2012 11.1 16.350 5 years 17/01/2017
Sixty sixth 03/04/2012 10.0 16.150 3 years 03/04/2015
Sixty seventh 03/04/2012 10.0 16.850 7 years 03/04/2019
Sixty eighth 03/04/2012 9.8 17.000 10 years 03/04/2022
Sixty ninth 10/04/2012 10.0 16.550 5 years 10/04/2017
Seventieth 03/07/2012 15.0 16.150 3 years 03/07/2015
Seventy first 14/08/2012 8.5 16.580 5 years 14/08/2017
Seventy second 21/08/2012 6.5 16.900 7 years 21/08/2019
Seventy third 18/09/2012 1.0 15.454 2 years 16/09/2014
Seventy fourth 09/10/2012 5.5 14.050 3 years 09/10/2015
Seventy fifth 13/11/2012 6.0 13.650 5 years 13/11/2017
Seventy sixth 13/11/2012 3.5 14.170 7 years 13/11/2019
Seventy seventh 01/01/2013 5.0 14.350 3 years 01/01/2016
Seventy eighth 01/01/2013 4.0 16.300 10 years 01/01/2023
Total 312.8
* 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 March 2013
Duration
- 143 -
The BudgetSector
The Budget Sector,NIB & SIFs
The BudgetSector
The Budget Sector,NIB & SIFs
Total Expenditures 586094 618303 382479 423691
Compensations of Employees 143027 144991 102684 104198Salaries and wages 111877 113689 84995 86392
Social contributions 12524 12651 10008 10110
Other 18626 18651 7681 7696
Purchases of Goods and Services 28924 29205 16079 16262Goods 13399 13425 7382 7398
Services 11846 12038 7615 7721
Other 3679 3742 1082 1143
Interests 138613 123999 101494 93989Foreign 6091 6091 3070 3070
Domestic 132522 117908 98424 90919
To NIB & SIFs 25919 0 14906 0
To Others 106602 117908 83518 90919
Subsidies, Grants and Social Benefits 182845 227046 116726 163536 Subsidies 142985 142985 98399 98399 To GASC 26473 26473 18874 18874
To Petroleum 100000 100000 72219 72219
To Others 16512 16512 7306 7306
Grants 6215 6215 2731 2731
Social Benefits 28331 72532 15288 62098 Contribution to SIFs 24700 4000 11783 83
Other 3631 68532 3505 62015
Other 5314 5314 308 308
Other Expenditures 34577 34776 24398 24525Defense 28000 28000 21079 21079
Other 6577 6776 3319 3446
Purchases of Non-Financial Assets (Investments) 58108 58286 21098 21181
Fixed assets 50939 51117 19248 19330
Others 7169 7169 1850 1851
Source: Ministry of Finance.
( LE mn)
2012 / 2013
Estimates 9 months (Actual)
(4/1) Consolidated Fiscal Operations of the General Government
(The Budget Sector, NIB and SIFs)
(Total Expenditures)
- 144 -
The BudgetSector
The Budget Sector,NIB & SIFs
The BudgetSector
The Budget Sector,NIB & SIFs
Total Revenues 395492 447590 208155 244633
Tax Revenues 266905 266905 156014 156014
Taxes on Income, Profits from; 121654 121654 62891 62891
EGPC 45816 45816 15753 15753
SCA 14094 14095 8900 8900
CBE 0 0 8291 8291
Other Units 31730 31729 12020 12020
Payable by individuals 30014 30014 17927 17927
Taxes on Property 19403 19403 11908 11908
Taxes on Goods and Services 100702 100702 65899 65899
Taxes on International Trade 20759 20759 12079 12079
Other Taxes 4387 4387 3237 3237
Grants 9655 9655 3181 3181
Current 8031 8031 2891 2891
Capital 1624 1624 290 290
Other Revenues 118932 171030 48960 85438
Property Income from: 78147 88263 29584 35517
EGPC 25986 25986 7565 7565
SCA 18636 18636 11514 11514
CBE 10800 10800 4517 4517
Economic Authorities 2908 2908 1406 1406
Companies 6046 6046 758 758
Other ( from EGPC & TML** ) 400 400 361 361
Other 13371 23487 3463 9396
Sales of Goods and Services 17200 17200 11384 11384
Financing Investment 10415 10415 2327 2327
Other 13170 55152 5665 36210** TML : Third Mobile License.
Source: Ministry of Finance.
- 145 -
2012/2013
9 months (Actual)
(4/2) Consolidated Fiscal Operations of the General Government
(The Budget Sector, NIB and SIFs)
(Total Revenues)
( LE mn )
Estimates
The BudgetSector
The Budget Sector,NIB & SIFs
The BudgetSector
The Budget Sector,NIB & SIFs
Total Revenues 395492 447590 208155 244633Total Expenditures 586094 618303 382479 423691
Cash Deficit 190602 170713 174324 179058
Net Acquisition of Financial Assets -5314 688 1563 2135
Overall Fiscal Balance Finance 185288 171401 175887 181193
Financing Sources 185288 171401 175887 181193Domestic Financing .. .. 220796 202301Banking Financing .. .. 172712 172851Central Bank .. .. 107536 107536
Other Banks .. .. 65176 65315
Non- Banking Financing .. .. 48084 29450NIB .. .. -1069 0
SIFs .. .. 22274 0
Other .. .. 26585 26585
NIB Borrowing .. .. 0 2571
Special Accounts for Economic Authorities .. .. 294 294
Blocked Account Used in Amortizing Part of CBE Bonds .. .. 0 0Foreign Borrowing .. .. -2306 -2306Arrears .. .. 0 0Others, of which : .. .. -11294 12508
Special Accounts for Budget Entities .. .. 0 0
Financing Effects for Eliminations .. .. 0 0Exchange Rate Revaluation .. .. 8772 8772Net Privatization Proceeds .. .. 12 12
Privatization Proceeds .. .. 12 12
Treasury Contribution to the Fund .. .. 0 0
Difference between Treasury Bills Face Value & Present Value .. .. -4924 -4924Foreign Debt Reclassification Diff. and Related FX Diff. .. .. 0 0Discrepancy .. .. -35169 -35170
Cash deficit (surplus) as a percentage of GDP (%) 10.8% 9.8% 10.0% 10.3% Overall fiscal balance as a percentage of GDP(%) 10.5% 9.9% 10.1% 10.4% Revenues as a percentage of GDP (%) 22.5% 25.8% 12.0% 14.1% Expenditures as a percentage of GDP (%) 33.3% 35.6% 22.0% 24.4%Source: Ministry of Finance
.. Not Available
- 146 -
(4/3) Summary of the Consolidated Fiscal Operations of the General Government (The Budget Sector, NIB and SIFs)
2012 / 2013 Estimates 9 months (Actual)
(LE mn)
(LE mn)
June March June March
2011 2012 2012 2013 2011/2012 2012/2013
Gross Domestic Debt (1+2+3-4) 1044898 1183090 1238137 1460464 138192 222327 1- Net Domestic Debt of Government (A+B+C+D+E) 808113 945088 990529 1211209 136975 220680A- Balances of Bonds & Bills 916976 981975 1078162 1181349 64999 103187
Treasury bonds with the CBE 130596 129096 178830 178830 (1500) 0 Local currency bonds with public sector banks 4000 4000 4000 0 0 (4000) Bonds offered abroad *:
US$ 7583 3799 3834 4005 (3784) 171
LE 3954 4164 4279 0 210 (4279)
Egyptian treasury bonds 206767 250067 270567 312817 43300 42250
Government notes to compensate for the actuarial deficit in social insurance funds 2000 2000 2000 2000 0 0
Housing bonds 115 111 111 106 (4) (5)
Foreign currency bonds with public sector commercial banks 0 0 0 0 0 0
The equivalent of the retained 5% of corporate profits to purchase government bonds 1830 1837 1905 1912 7 7
Bonds of the Insurance Funds (against the transfer of NIB debt to the Treasury) 204028 204028 204028 219507 0 15479
Bonds of Barwa Real Estate Investment Company. 0 0 0 2726 0 2726
Treasury Bills 356103 382873 408608 459446 26770 50838LE 356103 357058 373398 406106 955 32708
US$ 0 25815 35210 43311 25815 8101
Euro 0 0 0 10029 0 10029
B- Borrowing from other entities 2000 8380 13036 26308 6380 13272C- Credit Facilities from the Social Insurance Funds 2343 2143 1725 1225 (200) (500)
D -The Masri Dollar certificate ** 0 0 193 1231 0 1038
E- Net Government Balances with the Banking System -113206 -47410 -102587 1096 65796 103683
2- Borrowing of Economic Authorities (Net) 66290 64928 63112 63747 (1362) 635 Net Balances of Economic Authorities with the Banking System 14149 12299 10457 9475 (1850) (982)
Borrowing of Economic Authorities from NIB *** 52141 52629 52655 54272 488 1617
3- NIB Debt (Net) 238179 239988 251028 252588 1809 1560NIB Debt 240851 241869 253679 254135 1018 456
Deposits of the NIB with the banking system (-) 2672 1881 2651 1547 (791) (1104)
4- NIB Intradebt 67684 66914 66532 67080 (770) 548 Government debt to the NIB (investments in government securities) 15543 14285 13877 12808 (1258) (1069)
Loans of economic authorities to NIB 52141 52629 52655 54272 488 1617Source: 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. *** Apart from the interest payments due to the NIB.
(4/4) Gross Domestic Debt
End of Change + (-) during July/March
- 147 -
(LE mn)June March June March
End of 2011 2012 2012 2013 2011/2012 2012/2013
Liabilities: of which: 240851 241869 253679 254135 1018 456
.Social Insurance Fund for Gov. Employees 32982 32982 34999 34999 0 0
.Social Insurance Fund for Pub. & Priv. Business Sectors Employees 29663 27611 29765 27791 (2052) (1974)
.Proceeds from investment certificates 94635 96891 97904 101355 2256 3451
. Accumulated interest on investment certificates (Category A) 8747 8212 8005 7310 (535) (695)
. Proceeds from US dollar development bonds 9 7 7 6 (2) (1)
.Post office savings 71978 71978 78852 78852 0 0
. Others* 2837 4188 4147 3822 1351 (325)
Assets: of which: 240851 241869 253679 254135 1018 456
. Loans to economic authorities 52141 52629 52655 54272 488 1617
. Investments in government securities (bills and bonds) 15543 14285 13877 12808 (1258) (1069)
.Deposits of the NIB with the banking system 2672 1881 2651 1547 (791) (1104)
.Lending to holding companies and affiliate units, concessional loans, and others 170495 173074 184496 185508 2579 1012
(NIB debt minus its intradebt)
* Including deposits of the private insurance funds, saving certificates, and loans & deposits of various entities.
(4/5) National Investment Bank ( Resources and Uses)
- 148 -
Change + (-) during July/March
(US$ mn)
Change
Value % Value % (-)
Balance of Current Account (7078.6) (3886.7) 3191.9
Balance of Current Account (Excluding Transfers) (20415.2) (18303.8) 2111.4
Receipts 34728.0 100.0 37087.1 100.0 2359.1
Export proceeds** 19120.8 55.0 19819.2 53.4 698.4
Transportation, of which 6444.1 18.6 6693.2 18.1 249.1
Suez Canal dues 3928.9 11.3 3776.3 10.2 (152.6)
Travel 7084.4 20.4 8076.6 21.8 992.2
Investment income 165.0 0.5 140.2 0.4 (24.8)
Government receipts 195.6 0.6 347.7 0.9 152.1
Other receipts 1718.1 4.9 2010.2 5.4 292.1
Payments 55143.2 100.0 55390.9 100.0 247.7
Import payments** 43595.6 79.1 43636.6 78.8 41.0
Transportation 954.9 1.7 1262.4 2.3 307.5
Travel 1911.8 3.5 2103.1 3.8 191.3
Investment income, of which 5056.6 9.2 4553.3 8.2 (503.3)
Interest paid 446.2 0.8 473.6 0.9 27.4
Government expenditures 916.0 1.6 881.4 1.6 (34.6)
Other payments 2708.3 4.9 2954.1 5.3 245.8
Transfers 13336.6 100.0 14417.1 100.0 1080.5
Private (net) 12769.7 95.7 13777.6 95.6 1007.9
Official (net) 566.9 4.3 639.5 4.4 72.6
* Preliminary figures.
**Including the exports & imports of free zones.
- 149 -
(5/1) Balance of Payments
2011/2012* 2012/2013*
July/March
(US$ mn)
2011/2012* 2012/2013*
Value Value
Capital & Financial Account -2720.4 4273.5
Capital Account -78.8 -63.4Financial Account -2641.6 4336.9 Direct Investment Abroad -177.4 -110.8 Direct Investment in Egypt (Net) 1165.7 1376.1 Portfolio Investments Abroad -161.3 29.7 Portfolio Investments in Egypt (Net), Of which : -4569.2 -790.9 Bonds -396.6 -240.1
Other Investments 1100.6 3832.8 Net Borrowing 275.7 1530.9
Medium -and Long -Term Loans -624.0 133.4
Drawings 1131.5 1902.1
Repayments -1755.5 -1768.7
Medium -Term Suppliers' Credit 20.5 -31.2
Drawings 80.6 236.7
Repayments -60.1 -267.9
Short -Term Suppliers' Credit (Net) 879.2 1428.7 Other Assets 1513.1 -1081.1 CBE 20.4 4.5
Banks 3048.9 1167.0
Other -1556.2 -2252.6
Other Liabilities -688.2 3383.0
CBE -4.5 4002.2
Banks -683.7 -619.2
Net Errors & Omissions -1371.9 -2477.0Overall Balance -11170.9 -2090.2Change in Reserve Assets, Increase (-) 11170.9 2090.2Source: CBE.
* Preliminary figures.
- 150 -
(5/1) Balance of Payments (Contd.)
July/March
(US$ mn)
Value % Value % Total *** 19120.8 100.0 19819.2 100.0 698.4Fuels , Mineral Oils & Products 9135.0 47.8 9567.3 48.3 432.3
Crude oil 4351.0 22.8 5121.6 25.8 770.6Petroleum products **** 4500.4 23.5 4325.6 21.8 (174.8)Coal & types thereof 31.1 0.2 29.6 0.1 (1.5)
Raw Materials 795.9 4.2 926.7 4.7 130.8Cotton 93.8 0.5 86.2 0.4 (7.6)Potatoes 33.4 0.2 46.5 0.2 13.1Edible fruits & nuts 71.2 0.4 105.0 0.5 33.8Oil seeds & oleaginous fruits, medicinal plants & plants for manufacturing 23.9 0.1 39.4 0.2 15.5
Iron ores 49.0 0.3 101.1 0.5 52.1Medicinal plants 20.3 0.1 18.1 0.1 (2.2)Citrus fruits 27.3 0.1 33.3 0.2 6.0Raw hides & tanned leather 27.3 0.1 20.4 0.1 (6.9)coffee 24.8 0.1 19.4 0.1 (5.4)Edible vegetables roots & tubers 134.7 0.7 138.2 0.7 3.5Dairy products, eggs and honey 132.0 0.7 133.8 0.7 1.8
Semi-finished Goods 1419.6 7.4 1491.3 7.5 71.7Carbon 122.0 0.6 144.3 0.7 22.3Essential oils & resins 31.6 0.2 18.4 0.1 (13.2)
151
Change(-)
(5/2) Exports by Degree of Processing *
July/March2011/2012** 2012/2013**
(US$ mn)
Value % Value % Cotton yarn 65.9 0.3 62.4 0.3 (3.5)Aluminium, unalloyed 60.3 0.3 89.1 0.4 28.8Animal & vegetable fats, greases & oils & products 80.9 0.4 97.0 0.5 16.1Synthetic fibers 23.8 0.1 13.1 0.1 (10.7)Organic & inorganic chemicals 443.9 2.3 391.8 2.0 (52.1)Cast iron & semi-finished products & rolled iron 295.0 1.5 203.1 1.0 (91.9)Leather, tanned 17.9 0.1 9.6 0.0 (8.3)Tanning or dyeing extracts 57.6 0.3 88.1 0.4 30.5Plastic & articles thereof 205.9 1.1 338.0 1.7 132.1Finished Goods 7765.8 40.6 7831.1 39.5 65.3Electric appliances 1029.4 5.4 903.4 4.6 (126.0)Gold,pearls and precious stones 731.2 3.8 888.5 4.5 157.3Milk & condensed cream 11.9 0.1 34.9 0.2 23.0Dried onion 13.8 0.1 12.8 0.1 (1.0)Rice 7.2 0.0 29.0 0.1 21.8Vegetable & fruit preparations 44.8 0.2 56.1 0.3 11.3Miscellaneous edible preparations 298.0 1.6 280.8 1.4 (17.2)Manufactured tobacco and tobacco substitutes 75.9 0.4 64.9 0.3 (11.0)Sugar and its products 64.7 0.3 94.7 0.5 30.0Pharmaceuticals 275.7 1.4 300.4 1.5 24.7Fertilizers 657.3 3.4 682.4 3.4 25.1Cement 72.9 0.4 126.9 0.6 54.0
(5/2) Exports by Degree of Processing * (Contd.)
July/MarchChange(-) 2011/2012** 2012/2013**
- 152 -
(US$ mn)
value % value % Extracts of essential oils & resins 83.4 0.4 116.6 0.6 33.2Leather products 16.0 0.1 19.4 0.1 3.4Rubber & articles 70.3 0.4 57.4 0.3 (12.9)Paper, cardboard paper & articles thereof 179.6 0.9 188.6 1.0 9.0Ceramic products 134.1 0.7 149.0 0.8 14.9Cars, bicycles & tractors 110.1 0.6 108.1 0.5 (2.0)Cotton textiles 447.7 2.3 559.5 2.8 111.8Carpets & other floor coverings 129.7 0.7 116.3 0.6 (13.4)Shoes & accessories 0.5 0.0 2.1 0.0 1.6Ready-made clothes 552.7 2.9 531.4 2.7 (21.3)Glass & glassware 179.8 0.9 163.9 0.8 (15.9)Copper & articles 194.2 1.0 156.6 0.8 (37.6)Aluminium articles 243.0 1.3 152.1 0.8 (90.9)Articles of iron and steel 232.0 1.2 259.0 1.3 27.0Wood & articles thereof and charcoal 22.7 0.1 18.5 0.1 (4.2)Marble & granite 77.0 0.4 64.1 0.3 (12.9)Articles of base metals 165.8 0.9 116.9 0.6 (48.9)Optical appliances 45.2 0.2 67.5 0.3 22.3Soap & Detergents, artificial waxes 287.1 1.5 248.9 1.3 (38.2)
Miscellaneous Goods (Undistributed) 4.5 0.0 2.8 0.0 (1.7)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.
- 153 -(5/2) Exports by Degree of Processing * (Contd.)
July/MarchChange(-) 2011/2012** 2012/2013**
(US$ mn)
Value % Value % Total *** 43595.6 100.0 43636.6 100.0 41.0Fuels, Mineral Oils & Products 6701.0 15.4 7015.5 16.1 314.5
Petroleum products **** 6575.6 15.1 6961.4 16.0 385.8Coal & types thereof 35.0 0.1 24.9 0.1 (10.1)
Raw Materials 6193.7 14.2 7034.4 16.1 840.7Crude oil 1685.9 3.9 2636.0 6.0 950.1Wheat 1638.1 3.8 1684.6 3.9 46.5Maize 1138.4 2.6 838.7 1.9 (299.7)Tobacco 422.5 1.0 338.2 0.8 (84.3)Metal ores 91.2 0.2 154.2 0.4 63.0Iron, ores 575.5 1.3 507.5 1.2 (68.0)Seeds & oleaginous seeds 359.2 0.8 679.1 1.6 319.9Cotton 47.4 0.1 18.5 0.0 (28.9)
Intermediate Goods 12578.1 28.9 11991.1 27.5 (587.0)Sugar, raw 637.9 1.5 470.4 1.1 (167.5)Animal and vegetable fats, greases & oils and products 1275.0 2.9 1104.2 2.5 (170.8)
Cement 85.8 0.2 10.8 0.0 (75.0)Organic & inorganic chemicals 1553.3 3.6 1489.1 3.4 (64.2)Fertilizers 215.4 0.5 134.5 0.3 (80.9)Tanning & dyeing extracts 186.3 0.4 161.7 0.4 (24.6)Essential oils & resinoids 37.7 0.1 34.3 0.1 (3.4)Plastic & articles thereof 1010.6 2.3 1183.7 2.7 173.1
(5/3) Imports by Degree of Use *
- 154-
July/MarchChange(-) 2011/2012** 2012/2013**
(US$ mn)
Value % Value % Wood & articles thereof 766.9 1.8 884.3 2.0 117.4Paper, cardboard paper & articles thereof 788.7 1.8 781.4 1.8 (7.3)Cotton textiles 122.2 0.3 112.5 0.3 (9.7)Synthetic fibers 502.2 1.2 497.4 1.1 (4.8)Ceramic products 228.8 0.5 194.4 0.4 (34.4)Glass & articles 99.9 0.2 76.6 0.2 (23.3)Iron & steel products 2144.7 4.9 1785.8 4.1 (358.9)Copper & articles 418.7 1.0 315.8 0.7 (102.9)Rubber & articles 410.4 0.9 476.9 1.1 66.5Aluminium & articles 186.9 0.4 189.2 0.4 2.3Articles of base metals 419.7 1.0 291.3 0.7 (128.4)Parts & accessories of motor vehicles 1244.5 2.9 1452.8 3.3 208.3
Investment Goods 7380.1 16.9 7471.6 17.1 91.5Pumps, fans & parts thereof 476.3 1.1 755.0 1.7 278.7Machines and apparatus for ginning and spinning & parts thereof 52.9 0.1 61.8 0.1 8.9
Computers 615.2 1.4 554.1 1.3 (61.1)Motors, generators, transformers & parts thereof 798.3 1.8 800.0 1.8 1.7Parts of railway and tramway locomotives or rolling stock equipment 126.3 0.3 277.5 0.6 151.2
Tractors 39.7 0.1 30.0 0.1 (9.7)Vehicles for transport of passengers 14.8 0.0 28.2 0.1 13.4Vehicles for transport of goods 26.4 0.1 37.3 0.1 10.9
(5/3) Imports by Degree of Use* (Contd.) - 155 -
July/MarchChange(-) 2011/2012** 2012/2013**
(US$ mn)
Value % Value % Tools, implements, cutlery & spoons 210.1 0.5 190.1 0.4 (20.0)Air conditioners 159.3 0.4 182.9 0.4 23.6Cranes and bulldozers & parts thereof 1069.2 2.5 629.5 1.4 (439.7)Agricultural machinery 66.7 0.2 71.2 0.2 4.5Printing machinery & parts 72.6 0.2 68.9 0.2 (3.7)Electric appliances for telephones & telegraph 819.3 1.9 729.8 1.7 (89.5)Optical appliances 423.9 1.0 431.3 1.0 7.4
Consumer Goods 10364.2 23.7 9715.8 22.3 (648.4)A - Durable Goods 2237.1 5.1 2349.1 5.4 112.0
Household refrigerators & electric freezers 122.8 0.3 169.4 0.4 46.6Televisions & parts thereof, videos and computer screens 298.3 0.7 272.7 0.6 (25.6)
Vehicles for transport of passengers 555.0 1.3 795.3 1.8 240.3Household electric-motor appliances 539.4 1.2 486.4 1.1 (53.0)
B - Non-durable Goods 8127.1 18.6 7366.7 16.9 (760.4)Meat and edible offals 638.0 1.5 734.9 1.7 96.9Fish, crustaceans, molluscs and others 218.3 0.5 258.7 0.6 40.4Dairy products, eggs, poultry and honey 478.3 1.1 422.3 1.0 (56.0)Edible vegetables roots & tubers 565.2 1.3 229.2 0.5 (336.0)Tea 127.7 0.3 178.6 0.4 50.9
(5/3) Imports by Degree of Use* (Contd.)
- 156 -
July/MarchChange(-) 2011/2012** 2012/2013**
(US$ mn)
Value % Value %Miscellaneous edible preparations 684.8 1.6 635.2 1.5 (49.6)Pharmaceuticals 1729.0 4.0 1629.1 3.7 (99.9)Insecticides 18.2 0.0 23.0 0.1 4.8Residues of foodstuff industries & animal fodder 339.6 0.8 253.0 0.6 (86.6)Live animals 91.9 0.2 57.1 0.1 (34.8)Ready-made clothes 766.5 1.8 753.6 1.7 (12.9)Cotton textiles 537.8 1.2 593.4 1.4 55.6Sugar, refined and products 25.3 0.1 22.4 0.1 (2.9)Lentils 48.6 0.1 25.9 0.1 (22.7)Soap, detergents & artificial waxes 284.3 0.7 98.3 0.2 (186.0)
Miscellaneous Goods (Undistributed) 378.5 0.9 408.2 0.9 29.7Source: 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.
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(5/3) Imports by Degree of Use* (Contd.)
July/MarchChange(-) 2011/2012** 2012/2013**
(US$ mn)
2011/2012** 2012/2013** 2011/2012** 2012/2013** 2011/2012** 2012/2013**Total *** 19120.8 19819.2 43595.6 43636.6 (24474.8) (23817.4)
European Union 7468.6 7348.3 13824.3 13137.3 (6355.7) (5789.0)Other European countries 1078.3 1347.3 4343.6 3873.2 (3265.3) (2525.9)Russian Federation & C.I.S 59.9 85.7 1668.4 1590.9 (1608.5) (1505.2)United States of America 2540.1 3159.4 3679.3 2875.5 (1139.2) 283.9Arab countries 3891.7 3784.7 7518.0 8746.7 (3626.3) (4962.0)Asian countries (Non Arab) 3269.6 3465.7 8755.2 9231.6 (5485.6) (5765.9)African countries (Non Arab) 384.0 340.1 444.8 430.5 (60.8) (90.4)Australia 13.7 17.3 278.1 271.6 (264.4) (254.3)Other countries & regions 414.9 270.7 3083.9 3479.3 (2669.0) (3208.6)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
July/MarchProceeds of Exports Payments for Imports* Trade Balance
End of
Minimum
Maximum
Weighted average
Second: Market Rates Buy Sell Buy Sell
US Dollar 604.55 607.48 679.47 683.10
Euro 751.52 755.22 870.95 875.94
Pound Sterling 939.71 944.39 1033.13 1038.99
Swiss Franc 625.57 628.93 715.53 719.73
100 Japanese Yen 761.11 765.09 720.92 725.23
Saudi Riyal 161.20 161.99 181.18 182.15
Kuwaiti Dinar 2151.19 2165.48 2379.02 2395.91
UAE Dirham 164.57 165.41 184.96 186.00
Chinese Yuan 95.09 95.56 109.40 109.99
Source : CBE daily exchange rates
The interbank Rates started at 23/12/2004
606.20
605.90
June 2012 March 2013
605.80 679.31
679.31
679.31
First: Interbank Rates US$
(In piasters per foreign currency unit)
(5/5) Average LE Exchange Rates
- 159 -
(US$ mn)
End of
%Value (-)%Value%Value11.64000.0100.038384.5100.034384.5Total External Debt **
0.384.382.331566.991.531482.61- Medium & Long term debt :(13.1)(1439.6)24.89543.731.910983.3 Rescheduled bilateral debt +
(10.1)(670.2)15.55984.419.36654.6 ODA(17.8)(769.4)9.33559.312.64328.7 Non-ODA19.1970.915.76045.114.75074.2 Other bilateral debt(7.6)(299.7)9.53661.011.53960.7 Paris club countries
114.11270.66.22384.13.21113.5 Other countries47.3191.71.6596.71.2405.0 Suppliers & buyers Credits5.7632.730.611700.832.211068.1 International & regional organizations(8.3)(240.1)7.02660.68.42900.7 Egyptian bonds and notes0.00.02.61000.02.91000.0 Long- term deposits
(61.0)(31.3)0.020.00.251.3 Private sector (Non guaranteed)134.93915.717.76817.68.52901.92- Short term debt :430.33931.512.64845.22.7913.7 Deposits(0.8)(15.8)5.11972.45.81988.2 Other Facilities
Source: Loans & 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
Change
- 160 -
(5/6) External Debt by Type
June 2012 March 2013*
(5/7) Distribution of External Debt by Main Currencies
(US$ mn)
ChangeEnd of(-)%Value%Value
4000.0100.038384.5100.034384.5Total5398.853.220417.643.715018.8US dollar **(12.7)0.3111.70.3124.4Canadian dollar(15.5)0.277.90.393.4Australian dollar(49.9)1.1441.01.4490.9Swiss franc(29.4)0.4138.30.5167.7Sterling pound(956.8)8.93423.312.74380.1Japanese yen(3.7)0.292.90.396.6Danish krone(0.1)0.04.10.04.2Norwegian krone1.00.123.10.122.1Swedish krona
123.96.12346.86.52222.9Kuwaiti dinar24.20.295.80.271.6Saudi riyal7.60.129.20.121.6UAE dirham
(102.7)21.68280.924.48383.6Euro(331.0)0.6231.51.6562.5Egyptain Pound(53.7)7.02670.47.92724.1SDRs
Source: Loans & External Debt Department- CBE* Provisional.** Including other obligations in US dollar.
- 161 -
March 2013*June 2012