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According to analysts and bankers, most of the Egyptian channel certificates due September 4 will not be released from banks after the due date, but will be reinvested in new investment certificates because the nature of the certificate holders is not the type of risk associated with the investment.
In 2014, the Suez Canal Authority raised more than 60 billion pounds by offering investment certificates to Egyptians for five years. Its yield increased by 12% at the end of 2016 to reach about 15.5%. She used her revenues to build the new Suez Canal and several tunnels.
Egypt has only authorized the purchase of investment certificates for Egyptians only from individuals, companies and Egyptian organizations (investment funds).
"Often, 80% of the certificates due in September will be linked to new certificates, because most subscribers to the Suez Canal certificates are customers of banks, not investors," Mona Mostafa, head of transactions at Arab Online.
"A fraction of the value of certificates can enter the real estate sector."
In August 2014, Egypt announced plans to build the new Suez Canal along the existing 145-year-old canal as part of a multi-billion dollar project to expand trade along the fastest shipping route between Europe and Asia.
Egyptian officials hope the new channel will increase annual revenues from more than $ 5 billion to $ 13.5 billion by 2023.
Suez Canal revenues in Egypt reached $ 5.7 billion in 2018, up from $ 5.3 billion in 2017.
"Do not forget that this week's interest rate meeting, even though the majority is expecting a rate cut, the central bank could resort to stabilization to preserve the source of debt of the government and ensure that the Suez Canal funds are not in the hands of the people, which could increase inflation (increase consumption). "
Egypt's latest single-digit inflation data allows the Central Bank of Egypt to begin easing monetary policy at its meeting next Thursday.
Last month, the central bank's monetary policy committee kept interest rates at 15.75 percent and 16.75 percent, respectively, on overnight deposits and loans.
"Investment certificate holders of the Suez Canal do not have the culture of investing in the stock market and their money is not the size at which they are allowed to invest." in the real estate business, so I'm waiting for the certificates 'money to come in again when they are due in banks' savings banks, "Reuters told Reuters an analyst of a state bank.
"Although the interest rate is expected to fall at the next central meeting, this will not prevent the beneficiaries of investment certificates from reinvesting in the certificates because savings funds are the only way to save money. best and safest place to invest. "
* Banks are ready to absorb the liquidity of certificates
"Banks have savings banks capable of containing the available cash with the payment of the certificate of the Suez Canal," said Yahya Aboul Fotouh, vice president of the National Bank of Egypt, the largest state bank of the country.
"Banks have savings banks that can absorb the available cash," said Hussein Rifai, director of the Suez Canal Bank.
"The Ministry of Finance will transfer the funds of the certificates to the banks according to their due date, bearing interest on the accounts of the Suez Canal Authority."
The issuing banks are the National Bank of Egypt, Misr Bank, Cairo Bank and the Suez Canal Bank.
Tarek Fayed, director of Cairo Bank, the third state-owned bank, said his bank "was making marketing efforts to retain customers of the Suez Canal Certificates by offering savings products geared to their needs".
The Suez Canal certificates have attracted unprecedented participation of Egyptians, especially those over 40, as well as demand from businesses and government and private organizations.
"Most of the Suez Canal certificates will be used by Suez Channel owners when they buy new certificates," said Radwa El-Sewify, head of research at Pharos Investment Bank. "Only a small percentage can be allocated to other investments: gold, real estate or return under the slab like Jet."
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