New Egypt Central Bank Ruling A Blow For Local Money Market Funds
Published 2013-05-17 09:03:17| Amwal Al Ghad English
Egypt's central bank, worried that banks are investing too much of their cash in local money market and fixed income funds, is imposing stricter limits on such investments, a move asset managers say could cripple their industry. In a copy of a central bank directive obtained by Reuters, the central bank says banks will not be able to invest more than 2 percent of their tier-one capital in local money market and fixed-income funds, down from 5 percent at present. A central bank official said that some banks' investments in these funds had approached the size of their entire loan portfolio. "It's something that any central bank would be worried about," the official, who asked not to be named, told Reuters by telephone. "We don't regulate these companies, we don't supervise these companies, and they (the banks) leave this amount of money to be managed by these companies," the official said. The bank's directive, dated May 9, has been circulated to banks but does not say when it would come into effect.
- New Egypt Central Bank Ruling A Blow For Local Money Market Funds
- CIB Reports EGP 655 Mln Net Profit In Q1 2013
- Egypt’s Central Bank Offers US$ 40 Mln At Thursday’s FX Auction
- NBE Negotiates With SFD To Secure EGP 90 Mln For NGOs
- Egypt Says Disputes With Dubai's DAMAC Are Resolved
- SFD Cooperates With 3 Banks To Finance Franchise Projects
- CIB Approves Q1 2013 Financial Results Today
- NBE’s Credit Card Holders Allowed To Buy Samsung Products In Installments
- Egypt Developer TMG First-Quarter Net Profit Falls 19.8 Pct
- Egypt’s SODIC Names New CFO
Misr Life Insurance Company achieved premiums of EGP 1.307 billion in the first nine months of FY 2012/2013, compared to EGP 1.139 billion in the compared period, registering a growth rate of 14.8%. The company’s direct individual premiums reached EGP 669 million, compared to EGP 598 million in the corresponding period in the last fiscal year, registering an increase of 12%. Misr Insurance Company’s group insurance premiums rose 16% to reach EGP 617 million by the end of the third quarter of the current fiscal year, compared to EGP 532 million in the third quarter of the last fiscal year. The company’s health insurance premiums reached EGP 20.3 million at the end of last March, compared to EGP 8.7 million in the corresponding period in the last fiscal year, registering a growth rate of 133.3%. The value of new individual insurance policies reached EGP 3.074 billion in the first nine months of the current fiscal year, compared to EGP 2.499 billion in the corresponding period in the last fiscal year, registering a growth rate of 23%. The value of group insurance policies reached EGP 45.938 billion at the end of last March, compared to EGP 40.268 billion at the end of March 2012, registering an increase of 14.1%.
Egypt said on Wednesday it had settled disputes with the Dubai-based developer DAMAC involving projects dating back to the Mubarak era - an agreement the government hopes will reassure prospective investors. The government said the settlement covered three disputes: two involving housing projects near Cairo and the third involving a piece of land on the Red Sea. It said the deal meant DAMAC would withdraw a suit against Egypt filed with the International Center for Settlement of Investment Disputes in Washington. The government said the settlement would spare Egypt the risks of international arbitration, safeguard its image abroad and reassure investors scared off by continuing political uncertainty. DAMAC could not immediately be reached for comment. It filed its international arbitration case against Egypt in 2011 over the conviction of its chairman and owner, Hussain Sajwani, in connection with a 2006 land deal in Gamsha Bay on the Red Sea. Several cases alleging that president Hosni Mubarak's government sold off land too cheaply have gained momentum since his overthrow in February 2011.
The Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.