Annual growth in lending in the private sector decreased last year, according to the latest report issued by the Ministry of Finance. Private lending growth, as of May, was at 2.7 percent and totaled 417.3 billion EGP (U.S. $ 70.1 billion), while as of May 2010, annual growth in private lending was at 4.8 percent. The annual growth rate of the liabilities in the public sector continues to decline, according to the report, which was published today on the Finance Ministry's website. Growth was down 11.6 percent, at 33 billion EGP (U.S. $5.5 billion), compared to May 2010 when growth in public liabilities was up 17.1 percent. The report blamed the decline in growth on the decline of indebtedness of public sector banking companies in June 2010. The report suggests that the annual decline will continue until the end of the period in June 2011. Last May saw a slight increase of 0.8 percent in the monthly growth rate of total local cash, representing 994.4 billion EGP (U.S. $167 billion), while last April's total was 986.8 billion EGP (U.S. $165.75). The annual growth rate of total local cash increased 11 percent during May 2011, while there was an increase of 8.4 percent in May 2010. The annual growth rate of the liabilities of the government and the Authority of Supply Commodity was 37.4 percent, according to the report. This compensated for the decline in the growth rate of foreign assets in the Central Bank. Last May saw an increase of 19.2 percent in the annual growth rate of money, and the rate of quasi-money growth increased to 8.5 percent during last May. The report also indicated that the rate of foreign assets at the end of last May fell to 7.3 percent for a total of 253.6 billion EGP (U.S. $42.6 billion). This decline is as a result of the decline of 20.3 percent in foreign assets in the Central Bank for a total of 150 billion EGP (U.S. $25.2 billion). During the month of the study commission for the report, the annual growth rate of foreign assets in banks increased to 21.2 percent, totaling 103.5 billion EGP (U.S. $17.4). The growth rate of local assets at the end of last May, according to the report, jumped to 19 percent and the end of April showed a 21.5 percent rate. The international reserves rate in the Central Bank declined 22.4 percent at the end of last May, for a total of U.S. $27 billion. The total size of deposits in the banking system increased by 7.8 percent at the end of last May for a total of 951.7 billion EGP (U.S. $159.9 billion), 87.6 percent of such deposits coming from government institutions. “The annual inflation rate of the republic cities was stable at 11.8 percent during the last June compared to last month. It increased 10.1 percent during June 2010, and the annual inflation rate of the whole republic slightly reduced during last June, to reach 12.1 percent and 12.2 percent during the last month,” read the report. Preliminary estimates for the state public budget for the fiscal year 2010-2011 are still in the preparatory phase and will be published when completed.
