The total value of loan assets in banks has increased by EGP 3.6bn in February to register EGP 552.4bn, up from EGP 548.8bn in January, according the Central Bank of Egypt's (CBE) April bulletin. The CBE added that the amount of loan assets granted to the governmental sector has slumped by EGP 739m, recording EGP39.87bn in February compared to EGP 40.61bn in the preceding month. In the non-governmental sector, loan assets hiked by EGP 4.39bn to EGP 512.5bn, up from EGP 508.1bn, which was attributed to an increase in loans in local and foreign currencies. During the period between July 2013 and February 2014, reserve currency increased by EGP 9.2bn, reflected in the rise of currency in circulation outside the CBE by EGP 6.9bn and in banks' deposits in local currency in the CBE by EGP 2.3bn, the report pointed out. The bank noted that domestic liquidity amounted to EGP 1.4tn at the end of February, with an increase of EGP 121.5bn from July's figures. In efforts to balance increasing annual inflation rates, sluggish economic activity, low investment levels and a negative GDP outlook, the CBE in late April kept official interest rates on hold for the third consecutive time. Its Monetary Policy Committee maintained the overnight deposit rate, overnight lending rate and the rate of main operations at 8.25%, 9.25% and 8.75%, respectively, adding that the discount rate would also remain unchanged at 8.75%.
