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Tomorrow, banks are considering raising the interest rate on personal and car loans

11:53 PM

Saturday 29 October 2022

I wrote – Manal Al-Masry:

Bankers, whom Masrawy spoke to, said that the Assets and Liabilities Committees (ALICO) decided to complete their meetings next Sunday morning with their return from the official weekend to discuss the fate of interest on personal loans (individuals), which include personal loans, cars, durable goods, credit cards, and others.

It is expected that banks’ decisions to raise the interest rate on personal loans will vary from one bank to another according to the cost of the interest rate on their deposits, which includes (certificates, accounts and deposits), as well as on the movements of competing banks to ensure continued competition, according to the sources.

The interest rate on personal loans is expected to rise by between 2 and 3%, according to each bank’s decision, to meet the high cost of savings certificates and deposits that the customer obtains on his savings in banks, according to banking sources.

In an extraordinary meeting on Thursday, the Monetary Policy Committee of the Central Bank decided to raise interest rates for the first time in 5 months, bringing the interest rate (corridor) at the Central Bank to 13.25% on deposit and 14.25% on lending.

The Central Bank’s decision to raise interest rates came with the liberalization of the exchange rate and the approval of the International Monetary Fund for a financing program for Egypt for a period of 46 months, with a value of $3 billion, in addition to making one billion dollars available from the Sustainability Fund, with an accompanying financing of about 5 billion dollars from development partners.

The exchange rate of the pound witnessed a significant decline last Thursday, as the price of the dollar rose against the pound by about 16% (an increase of more than 3 pounds), bringing the exchange rate of the dollar to about 23 pounds in banks.

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