The total credit facilities granted by banks to their clients in August increased by EGP 12.295bn, reaching EGP 956.638bn. In July, credit facilities stood at EGP 944.343bn, according to the Central Bank of Egypt (CBE).
In its monthly report on the performance of banks issued on Tuesday, the CBE stated that the private sector accounted for 59.4% of the total facilities granted in August.
The industrial sector accounted for 32.1% of the total credit facilities granted by banks to their clients in August. The services sector followed, which includes tourism, at 27.4%. Trade came in third with 10.6%.
As always, the agriculture sector came last on the list with only 1.4% of the total of these facilities during August.
A number of other sectors were not listed in detail in the CBE’s report. Collectively, these sectors, including the household sector, received 28.5% of the total facilities.
The head of a bank operating in Egypt said that the country needs more loans granted to different economic services, particularly the industry sector—considering its importance for the national economy. He explained that the industrial sector is the most important sector for increasing economic growth, reducing unemployment, and increasing employment rates, in addition to lifting the foreign exchange reserves of export earnings.
Moreover, he criticised the size of credit facilities granted by banks to the agriculture sector, stressing that agriculture is a very important sector of the Egyptian economy, highlighting its importance in securing basic commodities to support Egyptians, next to its contribution in exports.
The CBE stated that deposits at banks increased by EGP 34.4bn in August, recording EGP 2.172tn, up from EGP 2.138tn in July 2016.
According to the CBE, the household sector accounted for 75.3% of the total deposits in August.