The financial position of banks operating in the Egyptian market increased EGP 207bn to EGP 7.554trn in March 2021, compared to EGP 7.347trn in February 2021.
In a recent report, the Central Bank of Egypt (CBE) said that the capital of banks in the local market amounted to EGP 177.92bn in March, compared to EGP 174.7bn in February.
Meanwhile, the volume of free reserves amounted to EGP 347.826bn, and the balance of provisions for doubtful debts recorded EGP 165.588bn.
Credit facilities
The CBE said that the volume of credit facilities granted by banks operating in the local market to their customers amounted to EGP 2.648trn in March 2021. It also pointed to an increase in the volume of these facilities by EGP 448.2bn within nine months, with a growth rate of 20.4%.
Credit facilities are the loans granted by banks to clients, along with documentary credits and letters of guarantee that they open to cover import operations.
The CBE attributed this rise to the increase of EGP 258.9bn in the volume of credit facilities granted by banks to the government, at a rate of 38.4%. This was also driven by the increase of EGP 189.3bn in the volume of facilities granted to non-government parties, at a rate of 12.4%.
It explained that the increase in the balances granted to non-government parties was the result of an increase in the volume of facilities in local currency, amounting to EGP 252.3bn. There was also an increase in facilities in foreign currencies, equivalent to EGP 6.6bn.
