ECONOMIC REVIEW
Vol. 46 No. 2
2005/2006
Research, Development and Publishing Sector
This Review, issued in Arabic and English by the Research, Development and Publishing Sector, focuses on economic developments in ARE and in the world and presents specialized studies of relevance. Opinions expressed do not necessarily reflect those of the Bank.
Contents
Page Major Financial and Monetary Indicators National Developments Overview ………………………………………………………………. …. 1 1- Monetary and Banking Developments
1/1: Monetary and Banking Policy and Monetary Aggregates ……………...... 6 1/2: Banking Developments ……………………………………………………….. 21 2- Stock Exchange
2/1: Shares Market ………………………………………………………………… 35 2/2: Bonds Market ……………………………………………………………………. 39 3- Public Finance and Domestic Public Debt 3/1: Consolidated Fiscal Operations of the General Government …………………….. 43 3/2: Domestic Public Debt ………………………………………………………….. 51 4- External Transactions
4/1: Foreign Exchange Market ……………………………………………………...... 57 4/2: Balance of Payments ……………………………………………………………. 59 4/3: International Finance ……………………………………………………………. 76 5- Cotton
5/1: Domestic Developments …………………………………………………………. 89 5/2: International Developments ……………………………………………………… 94 6- Tourism
6/1: Tourists …………………………………………………………………………… 97 6/2: Tourist Nights …………………………………………………………………...... 99 External Developments 7- International Economic and Monetary Developments
7/1: Economic Developments ………………………………………………………… 102 7/2: Monetary Developments ………………………………………………………… 106 8- International Economic Cooperation
8/1: International and Regional Meetings …………………………………………….. 110 8/2: World Bank Activity……………………………………………………………… 112 Annex
- Statistical Section …………………………………………………………………… 117
Major Financial and Monetary Indicators
July/December 2004/2005 2005/2006 % Price Index Change in consumer price index (urban) (99/2000 = 100) 3.4 1.9 Change on wholesale price index (99/2000 = 100) 4.2+ 0.1
Money and Liquidity LE bn - Reserve money 134.6 163.6 - Domestic liquidity (M2) of the banking system (1) 468.3 522.3 - Money supply (M1) 83.5 100.7 • Currency in circulation outside the banking system 59.4 69.0 - Currency in circulation / money supply (%) 71.2 68.5
Deposits with Banks (2)
- Total deposits, of which: 494.9 540.2 • Business sector deposits (public and private) 90.9 100.4 • Household sector deposits 318.6 353.5 - Deposits in foreign currencies 159.8 153.3
(1 CBE and banks. (2) Excluding the CBE. + On the basis of 1986/1987 = 100
Bank Credit * (1) - Total credit granted by banks 438.5 497.2 • Government securities and bills 103.8 138.3 • Other securities (including the foreign sector) 31.6 42.5 • Loans to the government and public economic authorities 17.8 21.0 • Loans to the business sector ( public and private) 244.7 247.3 • Loans to the household sector and others 40.6 48.0 - Ratio of loans to deposits held with banks (%): 61.2 58.6 • In local currency 69.8 61.4 • In foreign currencies 43.4 51.5 - Ratio of portfolio and treasury bills to deposits held with banks (%) 27.3 33.5
Foreign Assets and Liabilities of the Banking System (2) - Foreign assets 158.6 201.9 25.8** 35.2** - Foreign liabilities 103.3 89.1 16.8** 15.5** - Net foreign assets 55.3 112.8 9.0** 19.7**
Discount and Interest Rates July/December 2004/2005 2005/2006
AT End of Period (Per Annum %) - CBE discount and interest rate 10.00 10.00 - Average interest rate on 91-day treasury bills 9.895 - - Simple interest rate on investment certificates 10.50 10.50 - Average interest rate on 3-month deposits with banks 7.68 6.50 - Average interest rate on one year or less loans with banks. 13.34 12.70
(1) Excluding the CBE. (2) The CBE and banks. * Includes loans, securities and bills ** In US$ billion
US Dollar Exchange Rate Announced PT per US Dollar by the CBE (At end of period)
- Market rates 614.5 573.2 - Weighted average interbank rates 614.1 573.7 Consolidated Fiscal Operations of 2005/2006 the General Government (LE bn)
Estimates Actual For FY July/Dec. - Total revenues 155.4 65.4 - Total expenditures 192.1 80.8 Cash Deficit 36.7 15.4 Net acquisition of financial assets 12.6 6.5 Overall Deficit/Surplus 49.3 21.9 Total Financing 49.3 21.9 - Domestic financing 64.6 13.1 - Banking 35.2 -10.2 - Non-banking 29.4 23.3 - Foreign borrowing 3.0 -1.9 - Arrears - -0.1 - Others -10.3 1.9 - Financing effects for eliminations -4.2 -1.5 - Revaluation differences - -0.3 - Net privatization proceeds 3.0 0.4 - Discrepancy -6.8 10.3 - Cash deficit/GDP(%) 6.2 2.6 - Overall deficit /GDP (%) 8.3 3.7 - Expenditures /GDP (%) 32.4 13.6 - Revenues /GDP (%) 26.2 11.0
Domestic Public Debt End of June 2005 Dec. 2005 - Government domestic debt 349.2 357.6 - Public economic authorities debt 47.2 51.8 - NIB debt 114.4 115.2
Balance of Payments (US$ bn) July/December 2004/2005 2005/2006 Balance of Current Account & Transfers 1.8 1.1 Trade Balance (5.1) (5.8) Merchandise exports 6.3 8.6 Oil and its products % 39.8 55.2 Others % 60.2 44.8 Merchandise imports 11.4 14.4 Intermediate goods % 28.1 29.3 Investment goods % 23.7 24.7 Consumer goods % 12.8 11.7 Fuel, other raw materials and others % 35.4 34.3 Services Balance 4.5 4.2 Receipts 7.7 8.7 Of which: Transportation % 26.6 29.0 Travel % 45.6 45.0 Investment income % 4.4 9.8 Payments 3.2 4.5 Of which: Transportation % 13.4 12.3 Travel % 19.2 17.9 Investment income % 16.2 15.8 Transfers 2.4 2.7 Official % 25.4 11.0 Private % 74.6 89.0 Capital and Financial Transactions (0.4) 2.8 Overall Surplus (Deficit) 0.7 2.6
Outstanding External Debt at End of September 31.1 29.7
National Developments
- 1 -
Overview
During July-December of FY 2005/2006, the Egyptian economic performance continued its noticeable improvement. GDP real growth rate at factor cost rose to 5.8%, spurred by higher contributions of all sectors, mainly of mining (natural gas), manufacturing, trade and agriculture.
As for the monetary policy, the CBE continued its efforts to realise the overriding objective of its monetary policy, i.e. to achieve price stability and to bring inflation down to a satisfactory and stable level. This is to help strengthen market confidence, while maintaining high rates of investment and economic growth. To this end, the CBE has developed a new framework for monetary policy implementation, which uses, as an operational target, the overnight interest rate on interbank transactions, instead of banks’ excess reserve balances. This represents the CBE's main policy instruments, providing the outer bounds of a corridor within which the ceiling is the overnight interest rate on lending from the Bank, and the floor is the overnight deposit interest rate at the Bank. On 5 June 2005, this framework has come into force, with the CBE Monetary Policy Committee (MPC) setting the overnight deposit and lending rates at 9.5% and 12.5%, respectively. Regarding the monetary policy instruments, the CBE issued a new instrument dubbed “the CBE notes” with maturities spanning up to two years. After its meeting in January 2006, the MPC reduced the overnight deposit and lending rates a number of times, to reach 8.25% and 10.25%, respectively. It is noteworthy that the MPC in the said meeting lowered the CBE lending and discount rate from 10.0% to 9.0% annually.
The impact of the MPC’s decisions was obvious on the overnight interbank interest rates. The weighted average of these rates dropped from 8.99% in December 2005 to 8.69% in January 2006. Likewise, interest rates on deposits and loans at banks declined during the period under review. - 2 -
Domestic liquidity growth slackened from 7.7% during July-December 2004/2005 to 5.8% during the same period of 2005/2006, reaching LE 522.3 billion at end of December 2005. As for the counterpart assets of domestic liquidity, net foreign assets moved up by the equivalent of LE 31.9 billion or 39.4%. Likewise, domestic credit increased by LE 7.2 billion or 1.5%, as an outcome of the rise in banks' credit to all sectors, except for the government sector.
Forex market transactions revealed a surplus of US$ 2.9 billion during the period under review, against a deficit of US$ 0.7 billion during the corresponding period of the previous FY. This was an outcome of the increase in resources by US$ 7.4 billion, to reach US$ 14.7 billion, and in uses by US$ 3.8 billion, to post US$ 11.8 billion. As a result, the Egyptian pound appreciated vis-à-vis the US dollar by 0.8%, as the LE exchange rate (buying) rose from pt 5.779 a dollar at end of June 2005 to pt 5.732 at end of December 2005.
Against these positive developments, net international reserves (NIR) at the CBE augmented by US$ 2.6 billion to US$ 21.9 billion at end of December 2005. NIR continued to increase, reaching as such US$ 22.8 billion at end of April 2006 (during the printing of this Review).
The CBE's monetary policy helped to lower inflation, in association with the decline in the domestic liquidity growth rate. With the resultant improvement in the value of the LE, preference for the local currency as a saving vehicle continued. Accordingly, local currency deposits as a percentage of banks’ total deposits rose from 67.9% at end of September 2004 to 72.5% at end of December 2005.
According to the CMA statistics, the stock market showed a vigorous performance during the period under review. As such, the number of transactions on both shares and bonds climbed to 2.7 million, against 887 thousand; and the number of dealt-in securities to 3.2 billion, against 1.2 billion. Moreover, the value of these securities quadrupled their value of the corresponding period, thereby reaching LE 101.3 billion, against LE 24.2 billion. - 3 -
As to foreigners' transactions on the Egyptian Exchange, the notably active trading on the Exchange helped attract further investors, and led to a considerable rise in the value of their transactions (purchases and sales), as compared with the corresponding period of the previous FY. As such, their purchases and sales in LE and US$ rose to LE 28.1 billion and LE 27.2 billion, respectively. Accordingly, foreigners' transactions unfolded net purchases of LE 0.9 billion during July- December of FY 2005/2006, mostly on Egyptian pound securities.
As for the fiscal policy, the execution of the consolidated fiscal operations of the general government (the budget sector, NIB and SIFs) during the statement period revealed that total revenues amounted to LE 65.4 billion and total expenditures to LE 80.8 billion. This resulted in a cash deficit of LE 15.4 billion. Adding the net acquisition of financial assets of LE 6.5 billion to the aforementioned amount, the overall deficit reaches LE 21.9 billion.
As a reflection of the above developments, total domestic public debt rose by about LE 13.8 billion during July-December 2005-2006, to reach LE 524.6 billion at end of December 2005; of which claims on the government accounted for 68.2%.
As for the transactions with the external sector during the first half of FY 2005-2006, the surplus on the BOP current account declined to only US$ 1.1 billion, against US$ 1.8 billion during the corresponding period of the previous FY. This was an outcome of the increase in the trade deficit and the decrease in services surplus on the one hand, and the increase in net unrequited transfers on the other. Trade deficit widened by 15.1%, as a result of the rise in merchandise import payments by 26.3% in spite of the 35.4% growth in merchandise exports (ascribable mainly to buoyant export earnings of oil and products thereof, driven by the increase in both the volume of oil exports and world oil prices). In the meantime, services surplus declined by 5.7% due to the rise in service payments by 40.4% and the limited increase in service receipts by only 13.5%. The increase in service receipts was mainly an outcome of higher travel, transport and investment income receipts. Net unrequited transfers stepped up as a main result of the remarkable increase in the remittances of Egyptians working abroad. The capital
- 4 -
and financial account unfolded a net inflow of US$ 2.8 billion during the period, against a net outflow of US$ 0.4 billion during the corresponding period of the previous FY.
Against this backdrop, the BOP revealed an overall surplus of US$ 2.6 billion during the statement period, against US$ 714.0 million in the period of comparison.
Regarding international finance, resource inflows rose by US$ 3.1 billion to US$ 6.8 billion during July-December 2005/2006, due mainly to the increase in foreign investment in Egypt (direct and portfolio).
Egypt’s external debt denominated in US dollar totaled US$ 29.7 billion (mostly owed by the public sector) at end of December 2005, denoting an increase of US$ 0.7 billion compared with the end of June 2005. This increase reflected the pick-up in net disbursements of loans and facilities by some US$ 1.2 billion and the decline in the balance of external debt by US$ 0.5 billion. The latter decline was a main outcome of the depreciation of most currencies of borrowing vis-à-vis the US dollar at end of December 2005. As for the external debt service, the debt service as a percentage of current receipts (including private and official transfers in the BOP current account) improved during the period under review, declining to 6.8% from 7.2% during the period of comparison. Likewise, the debt service to total exports of goods and services ratio fell to 7.9% from 8.5%.
As for tourism during July-December 2005/2006, as compared with the corresponding period of the previous FY, the CAPMAS statistics revealed that tourism revenues stepped up by 12.0%, to reach US$ 3.9 billion. This was due to a 13.3% increase in the estimate of the average tourist spending per night.
As for the financial and economic reform agenda, the period witnessed a number of important measures. Mainly, the CBE was allowed to seek the services of four of the world best investment managers to manage its foreign exchange reserves and the CBE portfolio abroad. Moreover, the Mohandes Bank and the Bank of Commerce and Development (Al Tegareyoon) were merged into the
- 5 -
National Bank of Egypt. An approval was also granted for BLOM Bank to acquire 100% of the issued and paid-up capital of Misr Romanian Bank. It was also agreed in principle to raise the stake acquired by either HSBC (Egypt) (S.A.E.) or the Consortium of Calyon Bank and MIMID to 100% of the issued and paid-up capital of the Egyptian American Bank. In addition, it was decided to establish a committee that will draft the Central Bank’s directions concerning the implementation of governance rules for the establishment of banks' boards of directors.
In the field of customs and tax reforms, the executive regulations of the Law of Custom Exemptions and the Income Tax Law were issued. Concerning exportation and importation, the Executive Regulations of the Law no. 118 of 1975 on Import and Export were also issued.
At the same time, the Law of the Organization of the Ministry of Social Solidarity was issued to achieve an optimum utilization of financial and in-kind resources. Also, the Law Establishing the Ministry of Planning and Local Development was issued to activate regional planning mechanisms needed to ensure a fair distribution of investments. Moreover, the Law Organizing the Ministry of Trade and Industry was issued to develop and modernize the national industry. It was also decided that the Minister of Finance is be responsible for implementing the social insurance regulations. - 6 -
1- Monetary and Banking Developments 1/1: Monetary and Banking Policy and Monetary Aggregates
Pursuant to Article (5) of Law No. 88 of 2003 regarding the Central Bank, the Banking Sector and Money, the Central Bank continued its efforts to realize price stability as the overriding objective of its monetary policy. In other words, the CBE works to bring inflation down to a low and stable level that helps deepen market confidence, while spurring the country’s economic growth.
To this end, a coordinating council was established under the chairmanship of the Prime Minister, and with the membership of Ministers of Finance, Planning and Investment, the Governor of the CBE and his two deputies, and six members who have international expertise in economic, banking and financial affairs (Presidential Decree No. 17 for 2005, issued on 12 January 2005). The Coordinating Council determines the monetary policy targets that ensure price stability and banking system soundness, within the context of the general economic policy of the State. The Prime Minister determines the issues to be referred to the Council.
In this context, the Central Bank has formed the Monetary Policy Committee (MPC), under the chairmanship of the Governor of the CBE and the membership of his two deputies and some members of the CBE Board of Directors. The Committee is responsible for studying the targets of the monetary policy, the reports and information provided by the Monetary Policy Unit, in light of the targets determined by the Coordinating Council. In addition, the Committee is responsible for studying and following up the economic developments, particularly the factors affecting inflation, and studying the proposals necessary for implementing such a policy. The Committee holds its meeting at least once every two weeks∗.
* Up till the end of December 2005, the Committee held its meeting on the third Thursday of every month, instead of the first Thursday. Afterwards, a new meeting schedule was set to be every six weeks. - 7 -
In its first statement in June 2005, the Committee announced the monetary policy strategy of the Central Bank and the Bank’s intension to apply a formal inflation targeting framework to anchor monetary policy once the fundamental prerequisites are met. In the transition period, the CBE meets its inflation objectives by steering short-term interest rates, keeping in view the developments in credit and money supply, as well as a host of other factors that may influence inflation.
The CBE has developed a new framework for monetary policy implementation. This framework relies on the use of overnight interest rate on interbank transactions, instead of the excess reserve balances of banks, as an operational target of this policy. This represents the CBE main policy instruments, providing the outer bounds of a corridor within which the ceiling is the overnight interest rate on lending from the Bank, and the floor is the overnight deposit interest rate at the Bank (the Corridor System). The MPC has announced, in its first statement, the overnight deposit and lending rates at 9.5% and 12.5%, respectively. In its regular meetings, the Committee considers, in light of requirements of price stability and the reports of the Monetary Policy Unit, whether to adjust the overnight deposit and lending rates or keep them unchanged.
With respect to the monetary policy instruments, the CBE introduced a new instrument dubbed “the CBE notes”. These notes are issued with a maturity spanning up to two years and are used to absorb banks' excess liquidity instead of the reverse repos of treasury bills.
To achieve the primary objective of the monetary policy, the Bank continued to pursue a non-expansionary monetary policy to absorb banks' excess liquidity. As such, the outstanding balance of open market operations reached LE 85.6 billion at end of December 2005 (including LE 33.8 billion as outright sales, LE 47.2 billion as transactions under the deposit acceptance mechanism and LE 4.6 billion as reverse repos), against LE 72.4 billion at end of June 2005 (of which LE 1.9 billion were outright sales, LE 35.0 billion were transactions under the deposit acceptance mechanism and LE 35.5 billion as reverse repos).
- 8 -
Thanks to the monetary policy actions during the period under review, domestic liquidity declined to 5.8% from 7.7% during the period of comparison. This led to a decline in the CPI-based inflation rate to reach 1.9% during the period under review, against 3.4% during the corresponding period. Encouraged by the decline in inflation rate, the MPC cut the overnight deposit and lending rates a number of times and narrowed the corridor from 3% to 2%, to reach 8.75% and 10.75%, respectively at end of December 2005. It is worth mentioning that at the time of printing this Review, the Committee in its meetings in January 2006 reduced the overnight deposit and lending rates by 0.5%, to reach 8.25% and 10.25%, respectively. Likewise, the CBE lending and discount rate was lowered from 10.0% to 9.0% annually.
The above said decisions of the MPC had a tangible impact on the overnight inter-bank interest rates. The weighted average of these rates declined to 8.69% during January 2006 (against 8.99% during December 2005, 9.32% during September 2005 and 9.64% during July 2005). These decisions also led to a drop in the interest rate on deposits and loans at banks as shown in the following table.
CBE Lending and Discount Rate and Bank's Average Interest Rates on Deposits and Loans
2004 2005 June December June December* CBE lending and discount rate 10.0 10.0 10.0 10.0 Three-month deposits 7.68 7.68 7.61 6.50 Six-month deposits 7.79 7.84 7.67 7.50 One-year deposits 7.77 7.89 7.70 7.70 Loans of one-year or less 13.27 13.34 13.35 12.70 * Provisional.
The said monetary policy actions, together with the activation of the interbank foreign currency market (the dollar interbank system) have helped strengthen the preference for the local currency as a saving vehicle and as a store of value. This was especially true with the improvement in the LE exchange rate and the expected sustainability of this trend. Accordingly, time and saving deposits - 9 -
in local currency contributed the bulk of the annual growth of broad money (M2), compared with a negative contribution of time and saving foreign currency deposits, denominated in local currency, in the period under review.( see the following table).
Share of Domestic Liquidity (M2) Components in its Growth (% Annually) 2004 2005 At End of June Dec. June Dec. Local currency time & saving deposits 7.5 11.4 10.8 9.2 Foreign currency time & saving deposits 3.0 (1.0) (1.3) (1.6) (denominated in local currency) Others 3.5 3.2 4.7 3.9 Broad money (M2) 14.0 13.6 14.2 11.5
The LE exchange rate continued to improve against the US dollar in the foreign currency interbank market during July-December, 2005/2006. The LE weighted average stood at LE 5.74/dollar at end of December 2005, against LE 5.78/dollar at end of June 2005. Net international reserves rose from US$ 19.3 billion at end of June 2005 to US$ 21.9 billion at end of December 2005, then to US$ 22.8 billion at end of April 2006 (during the printing of this Review).
1/1/1: Reserve Money
Reserve money decreased by LE 14.2 billion or 8.0% during July-December of FY 2005/2006, (against an LE 16.1 billion increase or 13.6% during the corresponding period of the previous FY), to reach LE 163.6 billion at end of Dec. 2005. The decrease was an outcome of an LE 20.1 billion drop in banks' local currency deposits and an LE 5.9 billion increase in currency in circulation outside the CBE. The decline in banks' local currency deposits at the CBE during the period was ascribed to the modifications made on the accounting treatment of the balance of Egyptian TB reverse repos according to the CBE Board of Directors’ decision No. 1501 issued on August 2, 2005. As per this treatment, the balance of - 10 -
reverse repos included in the government portfolio of the CBE balance sheet was crossed out, and the value of this balance was deducted from banks' local currency deposits at the CBE. The decision also stated that as far as banks’ balance sheets are concerned, these reverse repos are to be added to the item “treasury bills” and deducted from the balances held at the CBE.
Reserve Money and Counterpart Assets (LE mn) Balances at Change during End of July-December December 2004/2005 2005/2006 2005 Value % Value % A- Reserve Money 163608 16073 13.6 (14214) (8.0) - Currency in circulation outside the CBE 73173 3948 6.6 5932 8.8 - Banks' deposits in local currency 90435 12125 20.5 (20146) (18.2) B- Counterpart Assets 163608 16073 13.6 (14214) (8.0) - Net Foreign Assets 54018 (1043) (10.6) 16723 44.8 - Foreign Assets 122956 3158 3.6 14218 13.1 Gold 4500 - 0.0 - 0.0 Foreign securities 21000 1981 11.6 4335 26.0 Foreign currencies 97456 1177 1.8 9883 11.3 - Foreign Liabilities 68938 4201 5.4 (2505) (3.5) - Net Domestic Assets 109590 17116 15.8 (30937) (22.0) - Claims on the Government (Net) 102111 8649 8.7 (20153) (16.5) Claims, of which: 174142 39924 22.0 (53225) (23.4) Government securities 164436 43520 26.5 (43585) (21.0) Deposits 72031 31275 38.2 (33072) (31.5) - Claims on Banks (Net) -2057 961 (2.7) 19926 (90.6) Claims 22663 950 10.0 11091 95.8 Foreign currency deposits 24720 (11) 0.0 (8835) (26.3) - Other items (net) 9536 7506 16.8 (30710) (76.3) Assets 49997 11581 21.3 926 1.9 Liabilities, of which: 40461 4075 42.3 31636 358.5 Equities 2513 290 14.3 572 24.5 Provisions 370 66 21.4 68 22.5
- 11 -
A breakdown of the counterpart assets of reserve money shows that net domestic assets went down by LE 30.9 billion during the period, while net foreign assets augmented by LE 16.7 billion worth.
The decline in net domestic assets was ascribed to a decrease in the CBE's net claims on the government by LE 20.1 billion. This was an outcome of the LE 53.2 billion drop in the CBE claims on the government (due to the aforementioned accounting treatment) on the one hand, and the LE 33.1 billion decline in the government's deposits at the Central Bank. The decline in government deposits was because part of the TBs counterpart deposits held for the account of the Ministry of Finance has fallen due, and another part has been subject to early redemption. Moreover, other items (net) -net unclassified assets & liabilities and capital accounts- fell by LE 30.7 billion. This decline was mitigated by the rise in CBE net claims on banks by LE 19.9 billion due to its higher claims on banks (by LE 11.1 billion) on the one hand, and banks' lower foreign currency deposits therewith (by LE 8.8 billion worth) on the other.
Net foreign assets of the CBE increased during the period by LE 16.7 billion worth, as a reflection of a rise in its foreign assets by LE 14.2 billion worth and a decline in its foreign liabilities by LE 2.5 billion worth.
1/1/2: Banknote Issue
The balance of banknote issue (including subsidiary coins) augmented by LE 6.2 billion or 9.2% during July/December, 2005/2006, against LE 4.2 billion and 7.1% during the corresponding period of the preceding FY, to reach LE 74.0 billion at end of December 2005.
- 12 -
Banknote Issue and Change Rates* (LE mn) Change during Balance of Annual Change At End of July-December Banknote Issue Value % Value % June 2003 52432 6799 14.9 Dec. 2003 57354 7747 15.6 4922 9.4 June 2004 59922 7490 14.3 Dec. 2004 64150 6796 11.8 4228 7.1 June 2005 67753 7831 13.1 Dec. 2005 73965 9815 15.3 6212 9.2 * Including subsidiary coins issued by the Ministry of Finance.
The increase in banknote issue led to a rise of LE 5.9 billion or 8.8% in the currency in circulation outside the CBE, to reach LE 73.2 billion at end of December 2005.
A breakdown of currency in circulation outside the CBE by denomination showed a rise in the circulation of the LE 100 note, to register 40.9% of the total currency in circulation at end of December 2005, against 37.7% at end of June 2005. Meanwhile, the LE 20 note dropped from 15.2% to 13.3%, and so did the LE 10 note from 7.4% to 6.3% and the LE 5 from 1.9% to 1.7%. As for the rest of the denominations, they remained almost unchanged at their level of June 2005.
Accordingly, the average value per note rose to LE 19.84 at end of December 2005, against LE 19.59 at end of June 2005, up by 1.3% during the period under review.
- 13 -
Currency in Circulation outside the CBE* (LE mn) Change during June 2005 December 2005 July-Dec. Denominations Relative Relative 2004- 2005- Value Value Importance Importance 2005 2006 Total 67236 100.0 73172 100.0 6.6 8.8 Subsidiary coins 226 0.3 230 0.3 1.8 1.8 Pt 25 118 0.2 135 0.2 4.3 14.4 Pt 50 217 0.3 261 0.3 11.4 20.3 LE 1 512 0.8 592 0.8 5.9 15.6 LE 5 1251 1.9 1225 1.7 9.4 (2.1) LE 10 4999 7.4 4626 6.3 (2.3) (7.5) LE 20 10246 15.2 9702 13.3 0.1 (5.3) LE 50 24348 36.2 26454 36.2 3.0 8.6 LE 100 25319 37.7 29947 40.9 17.5 18.3 * Representing the difference between banknote issue and cash at the CBE.
1/1/3: Clearing Houses Activity and SWIFT Local Services
Data on banking transfers (Fin-Copy) indicate that the number of executed LE transfers through the SWIFT system rose by 36.5 thousand during July- December, 2005-2006, to post 189.7 thousand transfers. Likewise, their value increased by LE 149.5 billion to LE 755.8 billion at end of December 2005.
As for the inter-bank transactions in the US dollar according to the Fin-Copy system applicable as of September 19, 2004, the number of executed transactions amounted to 5531, at a value of US$ 17.1 billion during July-December, 2005- 2006, against 2732 transactions and a value of US$ 545.6 million during the corresponding period of the previous FY.
- 14 -
SWIFT Local Service Activity (LE mn) Number of Value of Change during the Period Executed Executed During Transfers Transfers Number Value (unit) (LE mn) 2003-2004 258501 970617 41567 (27588) 2004-2005 326341 1246023 67840 275406 July-Dec. 2004-2005 153180 606220 26354 92831 July-Dec. 2005-2006 189726 755756 36546 149536
Statistics of Cairo, Alexandria and Port Said clearing houses revealed stability in the number of exchanged cheques and a rise in their value during the period, as compared with the corresponding period of the previous FY. As a result, the average value per cheque rose from LE 27.8 thousand to LE 30.4 thousand.
CBE Clearing Houses Activity
Number of Value of Change during the During Cheques Cheques Period (000’s) (LE mn) Number Value 2002-2003 10025 244581 26.6 (9.6) 2003-2004 9591 248223 (4.3) 1.5 2004-2005 9322 262425 (2.8) 5.7 July-Dec. 2004-2005 4631 128674 0.9 8.0 July-Dec. 2005-2006 4621 140377 (0.2) 9.1
1/1/4: Domestic Liquidity and Affecting Factors
Domestic liquidity (M2) expanded by LE 28.4 billion or 5.8% during July- December of FY 2005-2006, against LE 33.4 billion and 7.7% during the corresponding period of the previous FY, to reach LE 522.3 billion at end of December 2005.
- 15 -
Domestic Liquidity Structure (LE mn) Change during July-December End of December 2005 2004-2005 2005-2006 Relative Balances Value % Value % Importance Domestic Liquidity (M2) 522296 100.0 33350 7.7 28412 5.8 Money Supply (M1) 100712 19.3 5843 7.5 11027 12.3 - Currency in circulation outside the banking system 68960 13.2 3492 6.2 5931 9.4 - Local currency demand deposits 31752 6.1 2351 10.8 5096 19.1 Quasi-money 421584 80.7 27507 7.7 17385 4.3 - Local currency time and saving deposits 296756 56.8 19858 8.5 13736 4.9 - Foreign currency deposits 124828 23.9 7649 6.2 3649 3.0 -Demand deposits 19195 3.7 2116 13.0 1055 5.8 -Time and saving deposits 105633 20.2 5533 5.2 2594 2.5
The rise in domestic liquidity during the period came as a reflection of the increase in its main components: money supply and quasi-money. Money supply stepped up by LE 11.0 billion or 12.3% (compared with LE 5.8 billion and 7.5%) reaching LE 100.7 billion or 19.3% of total domestic liquidity at end of December 2005.
The pick up in money supply (M1) was due to the increase in the currency in circulation outside the banking system by LE 5.9 billion or 9.4%, and in the LE demand deposits by LE 5.1 billion or 19.1%. The growth in the deposits of the private business, household and public business sectors was the main propeller for the rise in demand deposits.
- 16 -
Domestic Liquidity L.E. bn (End of December)
550 Foreign currency deposits 500 450 400 Time &saving deposits in 350 local currency 300 250 Currency in circulation 200 outside the banking 150 system 100 Demand deposits in local currency 50 0 2002 2003 2004 2005
Quasi-money increased by LE 17.4 billion or 4.3%, against LE 27.5 billion and 7.7%, to reach LE 421.6 billion or 80.7% of total domestic liquidity at end of December 2005.
The increase in quasi-money reflects the growth in time and saving deposits in local currency by LE 13.7 billion or 4.9%, to reach LE 296.8 billion. This is in addition to the rise in foreign currency deposits (demand, and time & saving) by LE 3.7 billion worth or 3.0%, to reach LE 124.8 billion.
Deposits of the household sector contributed the bulk of the rise in local currency time & saving deposits. Specifically, its deposits grew by LE 13.0 billion during the period, whereas the deposits of the public business sector went up by only LE 0.8 billion.
On the other hand, the increase in foreign currency deposits was due to the fact that deposits of both the private and public business sectors grew by LE 4.1 billion and LE 0.7 billion worth, respectively. On the other hand, the household sector deposits declined by the equivalent of LE 1.1 billion.
- 17 -
It is noteworthy that local currency deposits still contribute the bulk of total deposits. They accounted for 72.5% of the total at end of December 2005, against 71.9% at end of June 2005. This attests to the confidence of depositors in the Egyptian pound, especially with the ongoing improvement in the value of the Egyptian pound vis-à-vis the US dollar, as well as the higher interest rate on LE deposits compared with those in US dollar.
LE bn Non-Government Deposits at Banks (End of December) 480 440 400 360 320 280 Foreign currencies 240 200 160 Local currency 120 80 40 0 1997 1998 1999 2000 2001 2002 2003 2004 2005
- 18 -
Counterpart Assets of Domestic Liquidity (LE mn) Change during July-December End of December 2005 2004-2005 2005-2006 Relative Balances Value % Value % Importance Counterpart Assets of Domestic Liquidity 522296 100.0 33350 7.7 28412 5.8 Net Foreign Assets 112777 21.6 10087 22.3 31864 39.4 ¤ With the CBE 54018 10.3 (1043) (10.6) 16724 44.8 ¤ With other banks 58759 11.3 11130 31.5 15140 34.7 Domestic Credit 473948 90.7 23298 5.5 7177 1.5 Government (net) 151176 28.9 16289 12.9 (8713) (5.4) Public business sector 41756 8.0 2678 7.5 4335 11.6 Private business sector 235426 45.1 2426 1.1 7231 3.2 Household sector 45590 8.7 1905 5.1 4324 10.5 Other Items (Net) -64429 -12.3 (35) 0.1 (10629) 19.8
Clearly shown in the counterpart assets of domestic liquidity was the expansionary effect of both domestic credit and net foreign assets and the increase in the negative balance of other items (net).
Domestic credit rose by LE 7.2 billion or 1.5% during the period, against LE 23.3 billion and 5.5% during the corresponding period, to reach LE 473.9 billion at end of December 2005. The increase reflected the pick-up in the credit granted to all sectors during the period, with the exception of the government sector. Credit to the private business sector (mainly securities) mounted by LE 7.2 billion or 3.2%, raising its debt balance to banks to LE 235.4 billion, or 49.7% of total domestic credit at end of December 2005.
Credit to the public business sector increased by LE 4.4 billion or 11.6%, bringing its debt up to LE 41.8 billion or 8.8% of the total credit at end of December 2005.
- 19 -
The share of the household sector moved up by LE 4.3 billion or 10.5%, thereby raising its stock of debt to LE 45.6 billion, or 9.6% of the total credit.
The increase in domestic credit was mitigated by a decline of LE 8.7 billion or 5.4% in the net credit to the government sector during the period; hence its debt balance stood at LE 151.2 billion or 31.9% of total domestic credit at end of December 2005. This was mainly attributed on the one hand to a decline in loans to the government and the banking system holdings of government securities and treasury bills by LE 43.2 billion, and to a decrease of LE 34.5 billion in government deposits. It is worthy to note that the drop in government deposits was an outcome of the decrease in its local currency deposits by LE 41.1 billion and the increase in those in foreign currencies by the equivalent of LE 6.6 billion.
L.E. bn Domestic Credit (By Sector) (End of December)
480 440 Gove r nm e nt (ne t) 400 360 320 Private business 280 sector 240 200 Public business 160 sector 120 80 Household sector 40 0 2002 2003 2004 2005
- 20 -
Net foreign assets of the banking system remarkably increased during the period by the equivalent of LE 31.9 billion or 39.4%, against a rise of only LE 10.1 billion worth and 22.3%, to reach LE 112.8 billion worth at end of December 2005. This was mainly a result of a pickup in net foreign assets of both the Central Bank and banks by the equivalent of LE 16.7 billion and LE 15.2 billion, respectively.
Net Foreign Assets of the Banking System (LE mn) Change in Net June 2005 December 2005 during July- Dec. Foreign Foreign Foreign Foreign 2004- 2005- Net Net Assets Liabilities Assets Liabilities 2005 2006 Total 174328 93415 80913 201863 89086 112777 10087 31864 CBE 108737 71443 37294 122956 68938 54018 (1043) 16724 Banks 65591 21972 43619 78907 20148 58759 11130 15140
The negative balance of other items (net) moved up by LE 10.6 billion during the period, to reach LE 64.4 billion at end of December 2005. The rise was an outcome of banks' increase of their capital, reserves and provisions on the one hand, and of the decrease in unclassified assets and liabilities (net) on the other.
- 21 -
1/2: Banking Developments
1/2/1: Overview of Banks' Aggregate Financial Position
During July-December of FY 2005/2006, the aggregate financial position of banks rose by LE 45.0 billion or 6.4% (against LE 49.4 billion or 6.4% during the corresponding period of the previous FY) to reach LE 750.1 billion at end of December 2005. Aggregate Financial Position of Banks (LE mn) Change during June 2005 December 2005 July/December End of 2004/ 2005/ Relative Relative Value Value 2005 2006 Importance Importance % % Cash 6594 0.9 6183 0.8 4.5 (6.2) Securities & investments 172177 24.4 180826 24.1 3.9 5.0 Balances at banks abroad 51204 7.3 63999 8.5 14.0 25.0 Balances at CBE 109773 15.6 112833 15.0 (6.7) 2.8 Balances at banks in Egypt 15213 2.1 15453 2.1 (9.5) 1.6 Loan & discount balances 308195 43.7 316374 42.2 0.3 2.7 Other assets 41990 6.0 54482 7.3 35.6 29.8
(Assets = Liabilities) 705146 100.0 750150 100.0 4.6 6.4 Capital 22949 3.3 24513 3.3 2.7 6.8 Reserves 12419 1.8 12127 1.6 (5.2) (2.4) Provisions 49541 7.0 49990 6.7 5.1 0.9 Bonds & long-term loans 14254 2.0 18808 2.5 (5.2) 31.9 Obligations to banks abroad 12262 1.7 9898 1.3 (9.1) (19.3) Obligations to CBE 8011 1.1 17768 2.4 0.8 121.8 Obligations to banks in Egypt 14660 2.1 13638 1.8 (10.0) (7.0) Deposits 519649 73.7 540151 72.0 3.9 3.9 Other liabilities 51401 7.3 63257 8.4 32.4 23.1 - 22 -
On the liabilities side, the increase was mainly due to the fact that deposits stepped up by LE 20.5 billion or 3.9% (to LE 540.2 billion or 72.0% of total liabilities at end of December 2005), and other liabilities by LE 11.9 billion. As for assets, the rise was mainly ascribed to a pickup of LE 12.8 billion in the balances at banks abroad, of LE 8.6 billion in investments in securities and TBs, and of LE 8.2 billion in loan and discount balances. The increase in banks' local investments was an outcome of the rise in banks' investments in government bonds (LE 9.3 billion), equity participations (LE 6.9 billion) and CBE notes (LE 23.9 billion) on the one hand, and a drop in non-government bonds (LE 0.4 billion) and treasury bills (LE 31.6 billion), on the other. As for foreign investments, they mounted up by LE 0.5 billion.
Portfolio Structure (%)
End of June 2005 December 2005 In In In In Local Foreign Total Local Foreign Total Currency Currencies Currency Currencies Local Investments 81.8 12.4 94.2 82.5 11.7 94.2 Treasury bills 54.0 0.0 54.0 34.0 0.0 34.0 Government bonds 15.6 9.6 25.2 20.2 9.0 29.2 Non-government bonds 3.4 1.1 4.5 2.8 1.3 4.1 Equity participations 8.8 1.7 10.5 12.3 1.4 13.7 CBE notes - - - 13.2 - 13.2 Foreign Securities 0.0 5.8 5.8 0.0 5.8 5.8 Total 81.8 18.2 100.0 82.5 17.5 100.0 Total Portfolio (LE bn) 140.9 31.3 172.2 149.2 31.6 180.8
Transactions of banks in Egypt with their correspondents abroad unfolded a rise in their net credit balances by the equivalent of LE 15.2 billion, to reach LE 54.1 billion worth at end of December 2005.
- 23 -
Transactions with Banks Abroad (LE mn) June December Change during July-December End of 2005 2005 2004/2005 2005/2006 Value % Value % Net Position 38942 54101 10389 31.5 15159 38.9 Balances at banks abroad 51204 63999 10349 23.9 12795 25.0 Obligations to banks abroad 12262 9898 (40.0) (0.4) (2364) (19.3)
1/2/2: Interbank Money Market in Egypt
The volume of transactions in the interbank money market in Egypt expanded – in terms of deposits – by LE 0.2 billion, bringing up total deposits to LE 15.5 billion at end of December 2005. This was ascribed to a rise in local currency deposits by LE 1.5 billion and a decline in foreign currency deposits by the equivalent of LE 1.3 billion.
Volume of Interbank Money Market in Egypt
(LE mn) Change during July/December End of June December 2004/2005 2005/2006 2005 2005 Value % Value % Total 15213 15453 (1782) (8.3) 240 1.6 Balances in local currency 7201 8720 (798) (7.1) 1519 21.1 Balances in foreign currencies 8012 6733 (984) (9.6) (1279) (16.0)
- 24 -
1/2/3: Deposits
Deposits at banks( including government deposits) totaled LE 540.2 billion or 72.0% of the aggregate financial positions of banks at end of December 2005, up by LE 20.5 billion or 3.9% during the period (against a 3.9% rise during the corresponding period of the previous FY).
The bulk of the increase during the period was in local currency deposits that rose by LE 17.8 billion or 4.8%, to reach LE 386.9 billion at end of December 2005. Meanwhile, foreign currency deposits moved up by only LE 2.7 billion worth or 1.8%.
A breakdown of deposits by maturity shows that time and saving deposits, in both local and foreign currencies, still represent the bulk of deposits. As such, time and saving deposits in local currency mounted by LE 12.2 billion or 3.8%, to reach LE 336.8 billion or 87.1% of total local currency deposits, whereas those in foreign currencies grew by the equivalent of LE 2.2 billion or 1.9%, reaching LE 122.7 billion worth or 80.1% of total foreign currency deposits.
- 25 -
Banks’ Deposits by Type and Currency (LE mn)
December Change during July/December End of June 2005 2005 2004/2005 2005/2006 % Value Value % Total Deposits 519649 540151 33227 7.2 20502 3.9 In Local Currency 369067 386896 24247 7.8 17829 4.8 Demand 31606 37873 1227 4.5 6267 19.8 Time and saving 324664 336834 24030 8.9 12170 3.7 Blocked or retained 12797 12189 (1010) (7.1) (608) (4.8) In Foreign Currencies 150582 153255 8981 6.0 2673 1.8 Demand 19951 20893 886 4.5 942 4.7 Time and saving 120468 122706 7460 6.2 2238 1.9 Blocked or retained 10163 9656 635 5.6 (507) (5.0)
Time and saving deposits and saving systems at banks went up by LE 13.8 billion or 5.1%, to reach LE 283.6 billion at end of December 2005. This was mainly due to the LE 10.2 billion rise in saving systems (as an outcome of the LE 12.5 billion increase in three-years-or-more saving systems and the LE 2.3 billion decline in less-than-three-years saving systems) and to the LE 3.6 billion pickup in non-government time and saving deposits. - 26 -
Time and Saving Deposits and Saving Systems at Banks by Maturity (LE mn) Change during July/Dec. End of 2005/2006 2004/2005 June Dec. 2005 2005 Value % Value % Total(1+2) 269861 283643 19749 2.6 13882 5.1 1- Non-Gov. Time & Saving Deposits in Local Currency, of which: 174137 177695 (4185) (2.4) 3558 2.0 a. Free Deposits 61351 64036 (2057) (1.5) 2685 4.4 b- Blocked Deposits 8096 7779 666 11.8 (317) (3.9) c- Saving Accounts 102817 103883 (1504) (2.8) 1066 1.0 d- Others 1873 1997 (1290) (58.5) 124 6.6 2- Saving Systems 95724 105948 23934 79.1 10224 10.7 • Less than 3 years 7348 5069 (687) (1.9) (2279) (31.0) • 3 years or more 88376 100879 24621 27.0 12503 14.1
A sectoral breakdown of deposits in local currency indicates that the household sector contributed 84.1% of the increase, as its deposits grew by LE 15.0 billion or 5.9%, to reach LE 268.8 billion or 69.5% of total local currency deposits.
The increase in foreign currency deposits was an outcome of larger deposits of the private business sector by the equivalent of LE 4.1 billion and of the public business sector by LE 0.7 billion worth. In contrast, deposits of the household sector rolled back by LE 1.2 billion worth, the external sector by the equivalent of LE 0.8 billion and the government sector by LE 0.2 billion worth.
- 27 -
Deposits in Local and Foreign Currencies (End of De ce mbe r) L.E. bn 280 Local Currency Foreign Currencies 240 200 160 120 80 40 0 2004 2005 2004 2005 Government sector Public business sector Private business sector Household sector Foreign sector
Deposits at Banks by Sector
(LE mn) Change during July/December End of June 2005 Dec. 2005 2004/2005 2005/2006 Value % Value % Total 519649 540151 33228 7.2 20502 3.9 In Local Currency 369067 386896 4247 7.8 17829 4.8 Government sector 57649 56314 2581 4.8 (1335) (2.3) Public business sector 16727 17766 (283) (1.8) 1039 6.2 Private business sector 39668 42319 1634 4.6 2651 6.7 Household sector 253865 268848 20673 10.1 14983 5.9 External sector 1158 1649 (358) (48.2) 491 42.4 In Foreign Currencies 150582 153255 8981 6.0 2673 1.8 Government sector 27252 27072 1468 5.6 (180) (0.7) Public business sector 4195 4873 417 12.2 678 16.2 Private business sector 31337 35454 5540 18.7 4117 13.1 Household sector 85813 84638 1664 1.8 (1175) (1.4) External sector 1985 1218 (108) (14.2) (767) (38.6)
- 28 -
1/2/4: Lending Activity
During July/December, 2005/2006, credit facilities extended by banks increased by LE 8.2 billion or 2.7%, against LE 0.9 billion and 3.9% during the corresponding period of the previous FY, thus reaching LE 316.4 billion at end of December 2005. This increase was a reflection of the rise of LE 4.3 billion in local currency facilities and of LE 3.9 billion worth in those in foreign currencies.
Banks' Credit (LE mn) Change during July-Dec.
End of 2004/2005 2005/2006
June 2005 Dec.2005 Value % Value % Total 308195 316374 913 3.9 8179 2.7 In Local Currency 233141 237447 500 0.2 4306 1.9 Government sector 10938 10684 (317) (3.2) (254) (2.3) Public business sector 30164 34632 900 3.0 4468 14.8 Private business sector 152193 148108 (1455) (0.9) (4085) (2.7) Household sector 39354 43360 1348 3.7 4006 10.2 External sector 492 663 24 6.2 171 34.8 In Foreign Currencies 75054 78927 413 0.6 3873 5.2 Government sector 11080 10315 185 3.0 (765) (6.9) Public business sector 7078 6936 40 0.5 (142) (2.0) Private business sector 53502 57657 234 0.5 4155 7.8 Household sector 1913 2230 (20) (1.9) 317 16.6 External sector 1481 1789 (26) (2.0) 308 20.8
- 29 -
The rise in local currency facilities was attributed to an increase in the loans granted to the public business sector by LE 4.4 billion, to the household sector by LE 4.0 billion and to the external sector by LE 0.2 billion. Meanwhile, loans to the private business sector decreased by LE 4.1 billion and to the government sector by LE 0.2 billion. The pickup in foreign currency facilities was a main result of the rise in loans granted to the private business sector by the equivalent of LE 4.2 billion.
Credit by Economic Activity (LE mn)
Change during July/Dec.
End of June 2005 Dec. 2005 2004/2005 2005/2006 Value % Value % Total 308195 316374 913 0.3 8179 2.6 In Local Currency 233141 237447 500 0.2 4306 1.8 Agriculture 5822 5821 (353) (7.0) (1) 0.0 Manufacturing 81844 82770 2914 3.7 926 1.1 Trade 45648 45820 (2915) (6.0) 172 0.4 Services 59870 58839 (518) (0.9) (1031) (1.7) Unclassified sectors (including the 39957 44197 1372 3.8 4240 10.6 household) In Foreign Currencies 75054 78927 413 0.6 3873 5.2 Agriculture 619 804 (4) (0.7) 185 29.9 Manufacturing 34957 36687 (6) (0.0) 1730 4.9 Trade 11893 12172 617 4.9 279 2.3 Services 24188 25244 (182) (0.8) 1056 4.4 Unclassified sectors (including the household) 3397 4020 (12) (0.5) 623 18.3
- 30 -
A breakdown of credit facilities by economic activity shows that the manufacturing sector received 37.8% of total credit at end of December 2005. The services sector obtained 26.6% of the total, the trade sector 18.3%, the agriculture sector 2.1% and the unclassified sectors 15.2%.
A breakdown of loans and advances by maturity and currency shows that banks extended more long-term loans (more than one year) during the period under review, up by LE 3.5 billion or 2.9%, to reach LE 123.6 billion or 39.2% of the total. Loans and Advances by Maturity and Currency*
(LE mn)
Change during July-Dec.
End of June 2005 Dec. 2005 2004/2005 2005/2006 Value % Value % Total 306652 315246 6858 2.3 8594 2.8 One Year or Less 186579 191642 4542 2.4 5063 2.7 In Local Currency 146972 150310 4337 2.9 3338 2.3 In Foreign Currencies 39607 41332 205 0.5 1725 4.4 More Than One Year 120073 123604 2316 2.1 3531 2.9 In Local Currency 85110 86388 1179 1.5 1278 1.5 In Foreign Currencies 34963 37216 1137 3.8 2253 6.4 * Excluding discounted commercial papers.
- 31 -
2- Stock Exchange
The policies and measures adopted in earlier periods to improve the Stock Exchange performance began to reap fruits during July/December, 2005/2006. This was particularly true with the offering of a 20-percent stake in Telecom Egypt for sale under the privatization program during the reporting period, leading to new entrants in the market.
As a reflection of the distinguished performance of the Egyptian Stock Exchange during 2005, it was rated among the world's ten top emerging stock markets by some international institutions.
In the field of regulating the Stock Exchange activity and increasing the degree of disclosure and transparency, the T+0 system was introduced by virtue of a decision of CMA Board of Directors. According to this system, an investor may sell and buy shares and settle the transactions thereof in the same trading session. The system was applied to 17 shares chosen according to criteria set by the Exchange and approved by the CMA. It may also be applied to other securities, provided that they meet the set criteria. Moreover, the Egyptian Stock Exchange, in cooperation with Egypt for Information Dissemination Company (EGID), has made preparations for launching the electronic disclosure system for 17 listed companies whose shares represent 58% of the total value of market capital. This aims to ensure easy and rapid flow of information that must be disclosed by the listed companies and announced to all dealers on the Exchange.
As a consequence of issuing the Executive Regulations governing securitization transactions at end of 2005, public subscription was opened for the first securitization transaction. In this context, some financial obligations related to certain car finance operations were securitized in the amount of LE 140 million and a fixed annual interest rate of 11%.
As part of the efforts exerted to attract foreign investments and enhance the status of the Egyptian Stock Exchange among emerging markets, ABN-Amro, in cooperation with Cairo and Alexandria Stock Exchanges (CASE), issued 50 open- end dollar certificates, derived from CASE 30 indicator, in four international - 32 -
financial markets (Switzerland, Amsterdam, Frankfurt and Italy). These certificates began to be tradable on the Swiss Exchange as of the 31st of October 2005. On the same date, the World Federation of Exchanges (WFE) officially decided that CASE will join the Federation as a full fledged member, making Egypt the first Arab country to be given such a membership. Moreover, Telecom Egypt issued Global Depositary Receipts that were traded on London Exchange on the 14th of December 2005.
According to the indicators of overall dealing on the Stock Exchange during July/December, 2005/2006, the number of transactions on shares and bonds reached 2.7 million, against 887 thousand in the corresponding period. The number of dealt-in securities also increased to 3.2 billion, against 1.2 billion, with a value of LE 100.3 billion, exceeding fourfold the figure realized in the corresponding period (LE 24.2 billion). Of this amount, shares accounted for 96.3%.
Indicators of Overall Trading on the Stock Exchange
No. of Amount of Dealt- Value of Dealt- Transactions in Securities in Securities (000s Units) (mn) (LE bn)
July/December 2005/2006 Total 2661.4 3211.7 100.3 Shares 2661.1 3207.9 96.6 Bonds 0.3 3.8 3.7 July/December 2004/2005 Total 887.2 1153.0 24.2 Shares 887.0 1150.5 21.7 Bonds 0.2 2.5 2.5
- 33 -
The period witnessed a growing interest among individuals to invest in the Exchange, as their trading value represented 62.7% of the total value of dealings during December 2005, against 46.7% during June 2005.
Retail vs. Institutional Investors % in Terms of Percentage of Value Traded
70 67 62 63 58 57 60 53 51 49 50 47 42 43 38 37 40 33 30
20 Jun - 05 Jul Aug Sep Oct Nov Dec
Retail Institutions
Moreover, the value of foreigners' transactions (sell and buy) increased during the period. Their purchases and sales (in Egyptian pound and US dollar) mounted to LE 28.1 billion and LE 27.2 billion, respectively. This unfolded net purchases of LE 0.9 billion during July/December, 2005/2006 (the same figure of the preceding corresponding period).
- 34 -
Foreigners' Trading on the Stock Exchange
July/December 2004/2005 2005/2006 During Egyptian US Dollar Egyptian US Dollar Pound Pound Net Number of Transactions 12016 2 46019 -636 (Unit) Purchases 97142 716 293855 3817 Sales 85126 714 247836 4453 Net Volume of Securities (mn) 25 -1 115 -3 Purchases 154 1 547 20 Sales 129 2 432 23 Net Value of Securities (mn) 926.2 -5.8 2277.3 -241.6 Purchases 6504.9 4.3 27759.5 56.7 Sales 5578.7 10.1 25482.2 298.3 Source: Capital Market Authority
Foreigners' transactions on LE securities revealed net purchases of LE 2.3 billion (against LE 0.9 billion in the comparison period). On the other hand, their transactions in US dollar unfolded net sales of US$ 241.6 million (against US$ 5.8 million).
- 35 -
2/1: Shares Market
2/1/1: Primary (Issue) Market
a) New Issues
During July/December, 2005/2006, the number of new issues stood at 1017 against 1054 in the period of comparison. Of these issues, 594 were for new incorporations, with 52 million shares at a value of LE 1.7 billion or 9.8% of the total value of issues. Issues to increase the capital of existing companies reached 423, with the number of shares reaching 1.1 billion at a value of LE 16.1 billion or 90.2% of total issues.
New Share Issues on the Exchange
July/December 2004/2005 2005/2006 Total Number of Issues (Unit) 1054 1017 New incorporations 642 594 Capital increase of existing companies 412 423 Total Number of Shares (mn) 463 1173 New incorporations 130 52 Capital increase of existing companies 333 1121 Total Value of Shares (LE mn) 12392 17835 New incorporations 4434 1747 Capital increase of existing companies 7958 16088 Source: CMA (Information Center)
- 36 -
b) Companies Listed on the Exchange
The number of listed companies decreased to 744 at end of December 2005 (against 770 companies at end of June 2005) due to the delisting of the companies that failed to meet the listing conditions. Moreover, the nominal value of the capital of listed companies dropped from LE 108.2 billion to LE 106.1 billion. However, their market value mounted by 35.4%, to reach LE 456.3 billion at end of December 2005 (against LE 337.1 billion) as a result of the bullish market activity during the period.
Companies Listed on the Exchange (LE mn) June 2005 Dec. 2005 End of No. of Capital's Capital's No. of Capital's Capital's Companies Nominal Market Companies Nominal Market (Unit) Value Value (Unit) Value Value Total 770 108209 337059 744 106142 456278 Listed on official schedules 132 49274250136 138 53046 373964 Listed on unofficial schedules 612 57368 84407 585 51909 80427 Listed on the transitional schedule 26 15672516 21 1187 1887 Source: CASE
According to the sectoral distribution of the market capital, communications accounted for 31.4% and building & construction materials for 26.9% of the total market capital at end of December 2005. The sector of finance, insurance and real estates came next at 11.3%, followed by the manufacturing sector (7.3%) and natural gas and mining (6.2%).
- 37 -
Market Capital by Sector (LE mn)
End of June 2005 % Dec. 2005 % Total 337059 100.0 456278 100.0 Agriculture and fishing 1370 0.4 1304 0.3 Building and construction materials 78961 23.4 122861 26.9 Natural gas & mining 21886 6.5 28230 6.2 Manufacturing 22640 6.7 33260 7.3 Trade 2350 0.72361 0.5 Finance, insurance & real estates 39287 11.6 51453 11.3 Utilities 7008 2.15710 1.3 Communications 120541 35.8143400 31.4 Others 43015 12.867699 14.8 Source: CASE
2/1/2: Secondary (Trading) Market
Share trading boomed during July/December, 2005/2006 because of the increase in the number of dealers, following the public offering of the shares of Telecom Egypt on the Exchange. As such, the trading value of shares in both Egyptian pound and US dollar (on the floor and over the counter) jumped to LE 96.7 billion, up by 345% compared with the corresponding period of the previous FY. The trading value of shares on the floor scored LE 91.6 billion or 94.9% of the total.
The trading volume in LE shares accounted for 94% of the total trading on the floor, whereas that in US dollar represented only 6%. At the sectoral level, trading in listed shares showed that the manufacturing sector continued to be in the lead (in terms of the value, volume and number of implemented transactions in both LE and US dollar). The finance, insurance and real estates sector came next, followed by services, then transportation, communications, electricity, natural gas and health.
- 38 -
The volume of dealing in shares over the counter, mostly in Egyptian pound, reached LE 5.0 billion, or 84.4% of the total OTC dealings during the period.
Domestic indices of share prices reflected the good performance of the Egyptian Stock Exchange during 2005. The Capital Market Authority Index (CMAI) denoted a rise of 27% during July/December 2005/2006, recording 2238.9 points at end of December 2005, against 1763.4 points at end of June 2005.
Index Number of Share Prices by Sector
3000 2750 Jun-05 2500 2250 Sept-05 2000 Dec-05 1750 1500 1250 1000 750 500 250 0 g e ure in tion ring tion rad nce es ult Min uc ctu rta T ura rvic gric str ufa po Ins Se A Con an ans e& M Tr anc Fin
The CASE 30 including the top 30 companies in terms of liquidity and activity recorded a remarkable increase of 31% during the period, posting 6324.7 points at end of December 2005, against 4828.7 points at end of June 2005.
- 39 -
Cairo & Alex. Stock Exchange Index (CASE30) - Capital Market Authority Index (CMAI)
6900 CASE 30 6500 6100 CMAI 5700 5300 4900 4500 4100 3700 3300 2900 2500 2100 1700 1300 900 500 June -04 Sept. -04 Dec. -04 March -05 June -05 Sept.-05 Dec. -05
2/2: Bonds Market
2/2/1: Primary (Issue) Market
The nominal value of issued bonds (listed) mounted by LE 16.7 billion during July/December 2005/2006, thereby reaching LE 52.0 billion at end of December 2005. The increase was an outcome of a pickup in treasury bonds – under the primary dealers system – by LE 18.0 billion and in corporate bonds by LE 1.0 billion. This is besides the amortization of treasury bonds, bank bonds and US dollar development bonds in the amount of LE 1.5 billion, LE 0.4 billion and the equivalent of LE 0.4 billion, in order.
- 40 -
Bonds Listed on the Exchange
(LE mn) End of June 2005 December 2005 Value % Value % Total 35313.1 100.0 52012.3 100.0 Government Bonds 28547.3 80.8 44663.0 85.9 - Treasury bonds 13000.0 36.8 11500.0 22.1 - Treasury bonds (primary dealers system) 14000.0 39.6 32000.0 61.5 - Housing bonds 123.6 0.4 121.8 0.3 - - US dollar development bonds 1423.7 4.0 1041.2 2.0 Corporate Bonds 5114.7 14.5 6148.2 11.8 Bank Bonds 1651.1 4.7 1201.1 2.3 Source: CASE
Government bonds accounted for 85.9% of total listed bonds at end of December 2005, followed by corporate bonds (11.8%) and bank bonds (only 2.3% of the total).
2/2/2: Secondary (Trading) Market
Dealings in the bond market during the period under review revealed an increase in the number of implemented transactions and the volume and value of dealt-in securities (mostly on the floor). LE bonds were traded only on the floor during the period and their volume reached 3.8 million papers, through 285 transactions, with a value of LE 3.4 billion, up by LE 0.9 billion compared with the corresponding period of the previous FY.
- 41 -
Trading in Listed Bonds on the Floor
During July /December 2004/2005 2005/2006 No. of Quantity Value No. of Quantity Value Trans- (000’s) (mn) Trans- (000’s) (mn) actions actions (Unit) (Unit) Total Bonds (LE) 216.0 2506.7 2504.6 285.0 3765.3 3393.6 Treasury bonds 10 14.2 16.3 11 57.3 61.0 Treasury Bonds (primary dealers system) 118 2445.0 2483.7 194 2907.2 3245.3 Housing bonds 70 19.2 1.5 39 2.7 0.2 Corporate bonds 9 19.7 2.1 40 798.1 87.1 Bank bonds 9 8.6 1.0 1 0 0.0 Total Bonds (US Dollar) 1 0.0 0.0 1 0.8 0.1 Development bonds 1 0.0 0.0 0 0 0.0 Corporate bonds 0 0.0 0.0 1 0.8 0.1 Source: CMA
Treasury bonds (under the primary dealers system) accounted for the bulk of trading on the floor (95.6%), where the trading volume registered 2.9 million bonds at a value of LE 3.2 billion through 194 transactions. Moreover, 0.8 million corporate bonds were dealt in at a value of LE 87.1 million through 40 transactions.
It is to be noted that OTC dealings were confined to US dollar bonds which amounted to 16.7 thousand bonds at a value of US$ 50.2 million through 27 transactions.
- 42-
2/3: Mutual Funds
The number of mutual funds stood at 25 at end of December 2005 (23 open- end funds and two close-end ones). The nominal value of these certificates reached LE 5.6 billion and their market value LE 10.8 billion at end of December 2005 (against LE 8.4 billion at end of June 2005), registering a rise of 28.6%.
Concerning the Egyptian mutual funds abroad, issuing their certificates in US$, their capital value at the time of incorporation amounted to US$ 509.3 million. - 43 -
3- Public Finance and Domestic Public Debt 3/1: Consolidated Fiscal Operations of General Government
Egypt’s fiscal policy continued its course starting from the beginning of FY 2005/2006, with a number of fiscal measures taken during October/December. For instance, the Executive Regulations of the Law governing Customs Exemptions were issued, and the basic foodstuffs that were released on temporary basis were exempted from certain customs duties. Moreover, a system for the electronic payment of customs duties was introduced to simplify import procedures and to ensure the release of consignments within the shortest possible time. As to general taxes, the Executive Regulations of the Income Tax Law were issued, while efforts continued to improve tax management. In addition, the first steps were taken to implement a plan for settling taxes due from previous periods, and new rules were issued concerning the system of advance tax payments on account. On the other side, the executive regulations of the voluntary part-time system for government and private sector employees were issued, and a pilot program of the smart ration card was launched, with the aim of controlling the provision of rationed commodities and ensuring the delivery of subsidies to those who really deserve them.
The period also witnessed the promulgation of the Law for the Organization of the Ministry of Social Solidarity, with the aim of achieving an optimum utilization of resources and ensuring a fair distribution of financial and physical allocations for needy income brackets of the society. Moreover, policies were developed to improve the individuals’ living standard; expand the social security umbrella to cover all citizens; and identify the subsidy-deserving brackets. It was also decided that the Minister of Finance is to be responsible for implementing the regulations of social insurance.
According to the Ministry of Finance, hereunder is a review of the estimates of the consolidated fiscal operations of the general government for FY 2005/2006, and the results of their execution over the course of July/December, 2005/2006.
- 44 -
3/1/1: Estimates of the Consolidated Fiscal Operations of the General Government during FY 2005/2006
Estimates of the State budget sector for FY 2005/2006 have not been revised, with revenues are targeted to reach LE 130.1 billion or 22.0% of GDP, expenditures LE 187.8 billion or 31.7% and the cash deficit LE 57.7 billion or 9.7%. Accordingly, the overall deficit is estimated at LE 59.4 billion or 10.0% of GDP.
As to the consolidated fiscal operations of the general government (the state budget sector, NIB and SIFs), total revenues are expected to reach LE 155.4 billion or 26.2% of GDP, total expenditures LE 192.1 billion or 32.4% and cash deficit LE 36.7 billion or 6.2%. Accordingly, the overall deficit was estimated at LE 49.3 billion or 8.3% of GDP.
The deficit in all sectors of the consolidated fiscal operations of the general government is expected to be financed by banking and non-banking domestic sources, with a minimum recourse to external sources. Some various domestic obligations are also to be paid from domestic sources after covering the deficit.
3/1/2: Follow-up of the Consolidated Fiscal Operations of the General Government during July/December, 2005/2006
First: State Budget Sector
A follow-up of the execution of the fiscal operations of the state budget sector (administrative system, local administration and service authorities) during July/December, 2005/2006 indicates that total collected revenues reached LE 55.0 billion or 42.2% of the total estimated for the whole FY.
- 45 -
On the revenues side, tax receipts were the major contributor, as they scored LE 34.7 billion or 63.1% of total revenues during July/December, 2005/2006 and represented 42.5% of the estimated figure for the whole FY. Taxes on goods and services contributed LE 15.7 billion or 28.6% of total revenues during the statement period, and on individuals' income and profits from EGPC, the Suez Canal Authority (SCA) and some other units contributed LE 14.0 billion or 25.4% of total revenues. Moreover, customs duties contributed LE 4.0 billion, representing 7.3% of total revenues and 44.4% of total estimates for the whole FY. Taxes on property and some other miscellaneous taxes accounted for the rest of collected revenues.
Revenues collected from property income reached LE 16.5 billion or 30% of total collected revenues, with an execution ratio of 43.5% of the total estimate for the whole year. Of this amount, 61.0% came from the EGPC, 32.8% from the SCA and 6.2% from some other economic authorities and companies.
The sales of goods and services, financing investments, and some other miscellaneous revenues posted LE 3.4 billion, representing only 6.2% of total revenues. Received grants amounted to LE 0.4 billion or 0.7% of total revenues.
On the other hand, expenditures registered LE 71.9 billion during the period, with an execution ratio of 38.3% of the total estimates for the whole FY. Compensations of employees accounted for LE 21.0 billion or 29.3% of total expenditures, with an execution ratio of 45.9% of the total estimated for the year. These compensations covered all wages and salaries, allowances and social benefits of all civil servants. In line with the State policy of cushioning low-income brackets of the society, subsidies amounted to LE 15.2 billion or 21.1% of the total, with an execution ratio of 43.0% of the estimated figure. Of this amount, 66.5% is to subsidize petroleum and the rest went to GASC. Interests on public debt (domestic and foreign) reached about LE 9.6 billion or 13.3% of the total, with an execution ratio of 22.5%.
- 46 -
Other expenditures (defense and some other miscellaneous expenses) reached LE 9.3 billion or 12.9% of the total, with an execution ratio of 50.8% of the total estimate. Social benefits, including pensions, amounted to LE 6.1 billion or 8.4% of the total, with an execution ratio of 48.8% of the estimated figure.
Expenditure on the investments of the administrative system, local administration and service authorities, included in the Economic and Social Development Plan, recorded LE 5.7 billion or 8.0% of total expenditures during the period, with an execution ratio of 32.9% of the estimated figure.
As a reflection of the aforementioned developments in the State budget sector (revenues and expenditures) during July/December, 2005/2006, the cash deficit amounted to LE 16.9 billion or 29.2% of the total estimated deficit for the whole FY. With the net acquisition of financial assets (reaching some LE 0.5 billion) plus the cash deficit, the overall deficit during the period reaches LE 17.4 billion or 29.2% of the total deficit estimated for the whole FY. Around 65.3% of this deficit was financed from banking sources and 2.1% from privatization proceeds.
Second: Budget Sector and NIB
With the addition of the fiscal operations of the NIB to the budget sector fiscal operations during July/December, 2005/2006, the cash deficit of the budget sector and the NIB declines to LE 10.2 billion. Net acquisition of financial assets also amounts to LE 1.6 billion. Accordingly, the overall deficit during the period reaches some LE 11.8 billion or 23.9% of the total estimated deficit for the whole FY.
Third: Budget Sector, NIB and SIFs
As a result of adding the fiscal operations of the SIFs to the aforementioned sectors, social benefits scaled up by LE 14.0 billion on the one hand, and revenues collected from property income mounted by LE 0.6 billion and some other miscellaneous revenues by LE 8.4 billion, on the other hand. - 47 -
Accordingly, total revenues increased during July/December, 2005/2006 by LE 9.0 billion, to reach LE 65.4 billion, with an execution ratio of 42.1% of the estimated figure.
Execution of Consolidated Fiscal Operations of General Government (Budget Sector, NIB and SIFs) (Total Revenues) (LE bn) July/December 2005/2006 Execution Execution Execution
Ratio of Ratio of Ratio of Budget Relative Budget Relative Total Total Budget Relative Total Sector Structure Sector and Structure Estimates Estimates Sector, NIB Structure Estimates NIB for the Year for the Year and SIFs for the Year Total Revenues 55.0 100.0 42.2 56.4 100.0 42.0 65.4 100.0 42.1 Tax Revenues 34.7 63.1 42.5 34.7 61.5 42.5 34.7 53.1 42.5 Tax on 40.1 14.0 21.3 income, profits 14.0 25.4 40.1 14.0 24.7 40.1 From EGPC 3.9 7.0 30.8 3.9 6.8 30.8 3.9 5.9 30.8 From SCA 3.7 6.7 49.3 3.7 6.5 49.3 3.7 5.6 49.3 From CBE ------From other units 2.6 4.7 41.2 2.6 4.6 41.1 2.6 3.9 41.1 Payable by individuals 3.8 7.0 45.6 3.8 6.8 45.6 3.8 5.9 45.6 Taxes on property 0.5 0.9 49.3 0.5 0.9 49.3 0.5 0.8 49.3 Taxes on goods and services 15.7 28.6 48.5 15.7 27.8 48.5 15.7 24.0 48.5 Taxes on international trade (customs) 4.0 7.3 44.4 4.0 7.2 44.4 4.0 6.2 44.4 Other taxes 0.5 0.9 11.8 0.5 0.9 11.8 0.5 0.8 11.8 Grants 0.4 0.7 13.9 0.4 0.7 13.8 0.4 0.6 13.8 Other Revenues 19.9 36.2 43.5 21.3 37.8 42.6 30.3 46.3 42.7 Property income 16.5 30.0 43.5 17.8 31.5 42.0 18.4 28.2 41.8 Sales of goods and services 2.1 3.9 42.2 2.1 3.8 42.2 2.1 3.3 42.2 Financing investment 0.3 0.5 26.2 0.3 0.5 26.2 0.3 0.4 26.2 Other 1.0 1.8 58.2 1.1 2.0 67.1 9.5 14.4 45.3 Source: The Ministry of Finance Percentages are calculated in terms of LE million. - 48 -
On the other hand, total expenditures mounted by LE 14.2 billion to LE 80.8 billion, with an execution ratio of 42.1% of the total estimated for the whole FY.
Execution of Consolidated Fiscal Operations of General Government (Budget Sector, NIB and SIFs) (Total Expenditures) (LE bn) July/December 2005/2006 Execution Execution Execution
Ratio of Ratio of Ratio of Budget Relative Budget Relative Total Total Budget Relative Total Sector Structure Sector and Structure Estimates Estimates Sector, NIB Structure Estimates NIB for the Year for the Year and SIFs for the Year Total Expenditures 71.9 100.0 38.3 66.6 100.0 38.6 80.8 100.0 42.1 - Compensations of Employees 21.0 29.3 45.9 21.0 31.5 45.8 21.2 26.3 45.8 -Purchases of Goods and Services 4.0 5.6 30.4 4.0 6.0 30.5 4.0 5.0 30.4 -Interests 9.6 13.3 22.5 9.9 14.8 25.7 9.9 12.2 25.7 -Subsidies, Grants and Social Benefits 22.3 30.9 44.0 16.7 25.1 42.3 30.7 38.0 52.5 Subsidies 15.2 21.1 43.0 15.2 22.8 42.9 15.2 18.8 42.9 Grants 1.0 1.4 55.5 1.0 1.5 55.5 1.0 1.3 55.5 Social benefits 6.1 8.4 48.8 0.5 0.8 39.2 14.5 17.9 71.6 Other - - 0.5 ------Other Expenditures 9.3 12.9 50.8 9.3 14.0 50.7 9.3 11.5 50.7 -Purchases of Non-financial Assets (Investments) 5.7 8.0 32.9 5.7 8.6 32.8 5.7 7.0 32.7 Source: The Ministry of Finance Percentages are calculated in terms of LE million.
- 49 -
As a result of the aforementioned fiscal operations on both sides of revenues and expenditures, the cash deficit in the consolidated fiscal operations of the general government during the period reached LE 15.4 billion or 42.0% of the estimated cash deficit for the whole FY. Net acquisition of financial assets amounted to LE 6.5 billion. Thus, the overall deficit posted LE 21.9 billion or 44.5% of the total estimated figure for the whole FY. - 50 -
Execution of Consolidated Fiscal Operations of General Government (Budget Sector, NIB and SIFs) (Cash and Overall Deficit/Surplus and Financing Sources) (LE bn) July/December 2005/2006 Execution Execution Execution
Ratio of Ratio of Ratio of Relative Budget Relative Budget Total Total Budget Relative Total Structure Sector Structure Sector Estimates Estimates Sector, NIB Structure Estimates and NIB for the Year for the Year and SIFs for the Year Total Revenues 55.0 42.2 56.4 42.0 65.4 42.1 Total Expenditures 71.9 38.3 66.6 38.6 80.8 42.1 Cash deficit 16.9 29.2 10.2 26.8 15.4 42.0 Net acquisition of financial assets 0.5 28.5 1.6 14.2 6.5 51.7 Overall Deficit 17.4 29.2 11.8 23.9 21.9 44.5 Financing Sources 17.4 100.0 29.2 11.8 100.0 23.9 21.9 100.0 44.5 Domestic financing 8.5 48.8 13.8 12.0 101.7 18.7 13.1 59.9 20.3 Banking financing -12.1* -69.6 -35.2 -11.4* -96.5 -32.7 -10.2* -46.5 -29.0 Non- banking financing 20.6 118.4 76.0 23.4 198.2 79.4 23.3 106.4 79.4 Foreign borrowing -1.9 -10.7 -61.9 -1.9 -15.8 -61.9 -1.9 -8.5 -61.9 Arrears - - --0.1 -1.0 - -0.1 -0.5- Other -0.1 -0.6 -9.8 -2.4 -20.6 -203.6 1.9 8.7 18.5 Financing effects for eliminations - - - -6.2 -52.6 -47.8 -1.5 -7.0 -36.3 Exchange rate revaluation -0.3 -1.7 - -0.3 -2.5 - -0.3 -1.3 - Net privatization proceeds 0.4 2.1 12.1 0.4 3.1 12.1 0.4 1.6 12.1 Privatization proceeds 1.1 6.3 21.7 1.1 9.2 21.7 1.1 4.9 21.7 Treasury contribution to the Restructuring Fund 0.7 4.2 36.3 0.7 6.1 36.3 0.7 3.3 36.3 Discrepancy 10.8 62.1 -159.1 10.3 87.7 -152.5 10.3 47.1 -152.5 Source: The Ministry of Finance * Includes financing of LE 11.3 billion to the budget sector and of LE 12.5 billion to the consolidated fiscal operations, from banks other than the CBE. Percentages are calculated in terms of LE million
Around 57.1% of this deficit was financed by banking sources (excluding the CBE) and 1.7% by privatization proceeds. - 51 -
3/2: Domestic Public Debt
3/2: Domestic Public Debt
Domestic public debt totaled LE 524.6 billion or 83.4% of GDP at end of Dec. 2005, up by LE 13.8 billion during July/Dec. of FY 2005/2006. Of the total debt, government debt accounted for 68.2%, debt of public economic authorities 9.9% and net debt of the National Investment Bank (NIB) 21.9%.
Domestic Public Debt (LE bn) End of June 2005 December 2005 Change Value % Value % +(-) Total Domestic Public Debt (1+2+3) due on:- 510.8 100.0 524.6 100.0 13.8 - Government 349.2 68.4 357.6 68.2 8.4 - Public Economic Authorities 47.2 9.2 51.8 9.9 4.6 - NIB (net debt) 114.4 22.4 115.2 21.9 0.8
3/2/1: Domestic Debt of the Government
Domestic debt of the government amounted to LE 357.6 billion, up by LE 8.4 billion or 2.4% during July-Dec. of FY 2005/2006, affected by the following developments. First, the government’s net credit position with the banking system dropped by LE 20.6 billion, with its deposits therewith falling faster than its borrowings. Second, there was a rise in the government borrowing from the NIB by LE 0.7 billion. Finally, the balances of bonds and bills retreated by LE 12.9 billion.
- 52 -
Domestic Debt of the Government (LE bn) Balances at End of June 2005 Dec. 2005 Change Value % Value % + (-) Domestic Debt of the Government 349.2 100.0 357.6 100.0 8.4 - Balances of Bonds & Bills 340.9 97.6 328.0 91.7 -12.9 . Notes and Bonds* 216.0 61.8 232.1 64.9 16.1 Of which: tradable on stock exchanges 32.3 9.2 48.9 13.7 16.6 . Treasury Bills 124.9 35.8 95.9 26.8 -29.0 - Government Borrowing from the NIB 143.7 41.2 144.4 40.4 0.7 -Government Net Balances with the Banking System -135.4 -38.8 -114.8 -32.1 20.6 . Facilities 17.9 5.1 7.9 2.2 -10.0 . Deposits -153.3 -43.9 -122.7 -34.3 30.6 Domestic Debt of Government / GDP 65.1% 60.3% Source: Ministry of Finance, CBE and NIB - Percentages are calculated in terms of LE mn. *Including Treasury bonds, housing bonds, bonds issued in foreign currencies with commercial public banks, the 5% ratio retained from the profits of the companies subject to Law No. 97 of the year 1983 for the purchase of government bonds, and the US dollar denominated sovereign bonds tradable on world exchanges and held with financial institutions resident in Egypt (the banking system and insurance sector).
It is noteworthy that the decrease in the outstanding balance of treasury bills by LE 29.0 billion, reaching LE 95.9 billion at end of December 2005 was ascribable to two main factors. First, the balance of treasury bills issued in favor of the CBE - to serve the monetary policy purposes, as agreed between the CBE and the Ministry of Finance - declined by LE 40.4 billion, due to the early redemption of LE 23.5 billion, while an amount of LE 16.9 billion of these TBs fell due. As a result, the remaining balance of these bills amounted to LE 4.6 billion at end of December 2005. Second, the outstanding balance of the TBs issued under the primary dealers system rose by LE 11.4 billion to LE 91.3 billion at end of December 2005.
- 53 -
The outstanding balance of issued treasury bonds increased by LE 16.1 billion, as an outcome of the following developments:
• Floating five Egyptian treasury bond issues under the primary dealers system at a value of LE 2.0 billion per issue. The first is to fall due on 12/7/2010 with an annual interest rate of 9.1%, the second on 16/8/2010 with an interest rate of 9.35%, the third on 4/10/2008 with an interest rate of 9.062%, the fourth on 18/10/2010 with an interest rate of 9.1% and finally, the fifth on 15/11/2015 and an interest rate of 9.3%.
• Floating two Egyptian Treasury bond issues under the primary dealers system over two stages, at a value of LE 2.0 billion for each, in August and September 2005. The auction was reopened on 8/11/2005 and 13/12/2005 on the same terms and conditions of the original issue, with the value of each issue registering LE 4.0 billion and falling due on 2/8/2009 and 20/9/2012, respectively.
• Increasing the dollar sovereign bonds by LE 0.2 billion.
• Issuing the twenty seventh tranche of the housing bonds at a value of LE 1.1 million, due on December 1st, 2024. Also, the eighth tranche was redeemed as of December 1st, 2005, at a value of LE 2.9 million.
• Redeeming three tranches of the Egyptian treasury bonds (the third, fourth and fifth) on the 16th of August, September and October 2005. The value of each tranche reached LE 0.5 billion. Hence, the balance of these bonds posted LE 43.5 billion at end of December 2005.
• Redeeming the treasury bonds issued in FY 1985/1986, in the amount of LE 470.1 million, to repay the debts of the GASC for previous years.
• Reducing the value of treasury bonds issued to finance the deficit in the foreign currencies position at commercial public banks, by the equivalent of LE 0.1 billion, due to revaluation differences.
- 54 -
LEbn Government Domestic Debt
300 200 100
0
-100
-200 June2005 Dec. 2005 Bor r ow ing fr om the N.I.B. Bonds Treasury Bills Net Balance w ith the Banking System
3/2/2: Debt of Public Economic Authorities
The stock of debt of public economic authorities rose by LE 4.6 billion during July-December of FY 2005/2006, to reach LE 51.8 billion at end of December 2005. This rise was a dual effect of a larger borrowing of these authorities from the NIB (by LE 1.9 billion) and their lower net credit position at the banking system (by LE 2.7 billion).
Debt of Public Economic Authorities (LE bn) June 2005 December 2005 Change Balances at End of Value % Value % + (-) Total Debt 47.2 100.0 51.8 100.0 4.6 - Net Balances of Public Economic Authorities at the Banking System -11.1 -23.5 -8.4 -16.3 2.7 . Facilities 23.4 49.7 23.0 44.5 -0.4 . Deposits -34.5 -73.2 -31.4 -60.8 3.1 - Borrowings of Public Economic Authorities from the NIB 58.3 123.5 60.2 116.3 1.9 Total Debt/ GDP 8.8% 8.7% Source: Ibid
- 55 -
3/2/3 : Resources and Uses of NIB
Net resources of the NIB stepped up by LE 3.4 billion during the statement period, thereby reaching LE 319.8 billion at end of December 2005. This was an outcome of the retreat in the NIB’s net credit position at the banking system by LE 0.7 billion and the increase of the surpluses transferred thereto from the Social Insurance Fund for Civil Servants by LE 0.4 billion, the post office saving accounts by LE 1.4 billion, and the proceeds of investment certificates and the accumulated returns on investment certificates (group A) by LE 1.4 billion. Added to this was the decline in the dollar development bonds by LE 0.4 billion and in the other domestic resources by LE 0.1 billion.
Resources and Uses of NIB
(LE bn) June 2005 Dec. 2005 Change Balances at End of Value % Value % + (-) Resources 316.4 100.0 319.8 100.0 3.4 -Social Insurance Fund for Civil Servants 122.9 38.8 123.3 38.5 0.4 -Social Insurance Fund for Business Sector Employees (Public and Private ) 96.1 30.4 96.1 30.0 - - Investment certificates proceeds 58.5 18.5 59.8 18.7 1.3 -Accumulated returns on investment certificates (group A) 6.8 2.2 6.9 2.2 0.1 - US dollar development bonds 1.4 0.4 1.0 0.3 -0.4 - Post office saving accounts 33.9 10.7 35.3 11.0 1.4 -NIB's account balances at the banking system (net) -4.9 -1.5 -4.2 -1.2 0.7 - Other Resources 1.7 0.5 1.6 0.5 -0.1 Uses 316.4 100.0 319.8 100.0 3.4 - Government 143.7 45.4 144.4 45.2 0.7 - Public economic authorities 58.3 18.4 60.2 18.8 1.9 - Others 114.4 36.2 115.2 36.0 0.8 NIB debt (net) / GDP 21.3% 19.4% Source: Ibid
- 56 -
The NIB used about LE 144.4 billion or 45.2% of its available resources to finance government investments and LE 60.2 billion or 18.8% to finance the investments of public economic authorities. The other resources (LE 115.2 billion or 36.0%) were directed to finance different activities of the Bank, such as concessional lending and participation in different projects.
- 57 -
4 - External Transactions 4/1: Foreign Exchange Market
Transactions on the foreign exchange market during July-December of FY 2005/2006 remarkably rebounded, in comparison to the same period a year earlier. Resources increased by US$ 7.4 billion or 103.4%, posting US$ 14.7 billion. On the other hand, utilizations also augmented by approximately US$ 3.8 billion or 48.0%, reaching US$ 11.8 billion. This brought about a surplus of US$ 2.9 billion during the reporting period (against a deficit of US$ 0.7 billion in the period of comparison), stemming from the surplus of US$ 2.8 billion in the banking system transactions and of US$ 0.1 billion of exchange dealer companies.
Resources and Utilizations of the Forex Market
(US$ mn) July-December During the Period 2004/2005 2005/2006 Surplus/Deficit (-) -731 2921 Banking System -870 2845 Foreign Exchange Dealer Companies 139 76 Resources 7222 14693 Banking System 6701 13492 Foreign Exchange Dealer Companies 521 1201 Utilizations 7953 11772 Banking System 7571 10647 Foreign Exchange Dealer Companies 382 1125
Net assets in foreign currencies with banks – apart from the CBE- decreased by US$ 0.3 billion, reaching US$ 4 billion at end of December 2005. Concurrently, the ratio of banks' assets to their obligations in foreign currencies fell to 112.3% at end of December 2005 (from 113.8% at end of June 2005). - 58 -
The positive developments in the forex market led to a rise in the CBE's net international reserves (NIR), by US$ 2.6 billion, to reach US$ 21.9 billion at end of December 2005. NIR remained on the rise (at the time of printing this Review), standing at US$ 22.8 billion at end of April 2006.
As for the developments in the exchange rate, the value of the US dollar (buy) decreased to PT 573.2 at end of December 2005 (against PT 577.9 at end of June 2005), denoting a drop of 0.8% throughout July/December, 2005/2006.
Average General Rate of the US Dollar on the Forex Market*
(PT/Dollar) End of Month Average Rate December 2004 614.5 January 2005 582.0 February 579.0 March 578.8 April 578.6 May 578.8 June 577.9 July 576.4 August 576.2 September 575.2 October 575.2 November 575.2 December 573.2 Source: The FOREX Statistics Chamber at the CBE
The number of exchange dealer companies currently in business in the foreign exchange market registered 101, with 154 branches at end of December 2005. The surplus of US$ 138.0 million realized in the corresponding period of the previous FY slackened to US$ 76 million in the reporting period. The decreased surplus was an outcome of the increase in their utilizations by US$ 743 million, to reach US$ 1.1 billion (9.6% of total market utilizations) and the increase in their resources by only US$ 680 million, to reach US$ 1.2 billion (8.2% of total market resources) during the first half of the FY 2005/2006. - 59 -
4/2: Balance of Payments ∗
4/2/1 : Summary
Egypt’s BOP revealed an overall surplus of US$ 2.6 billion during the first half of FY 2005/2006 (against US$ 0.7 billion during the same period a year earlier), with the country’s foreign reserve assets rising by the same amount. The BOP surplus was generally an outcome of the shift of the capital and financial account from a net outflow of US$ 0.4 billion to a net inflow of US$ 2.8 billion; and the current account surplus of US$ 1.1 billion (against US$ 1.8 billion). The retreat in the current account surplus was ascribed to the widening of the trade deficit, as the growth rate of merchandise import payments outpaced that of merchandise exports. This is in addition to the 5.7% drop in the services surplus, to reach only US$ 4.2 billion, and the 13.2% rise in net unrequited transfers, to register US$ 2.7 billion.
As for the capital and financial account, the increase in its net inflows during the period was ascribed to larger flows of foreign investment (direct and portfolio). Foreign investment unfolded a net inflow of US$ 6.1 billion against US$ 2.0 billion. This was partly a result of a rise in the FDI in Egypt to record a net inflow of US$ 3.3 billion or 3.2% of GDP (including US$ 0.9 billion as net investments in the oil sector and US$ 0.5 billion as the proceeds of selling local enterprises to foreign investors) against inflows of US$ 1.8 billion or 2.1% of GDP (including US$ 1.4 billion as investments in the oil sector and US$ 28.0 million as the proceeds of selling local companies to foreigners). Portfolio investment, in its turn, improved to a net inflow of US$ 2818.1 million (including foreigners’ subscriptions of US$ 2803.6 million for Egyptian bonds and notes) against a net inflow of US$ 121.1 million. The capital and financial account was also affected by the net outflows of US$ 3.6 billion achieved by the other assets and liabilities (against US$ 3.3 billion).Moreover, medium- and long-term borrowing revealed net repayments of US$ 107.0 million (against US$ 331.4 million).
♦ A statistical statement recording economic transactions between a given economy (resident) and the rest of the world (non-resident) during a specific period, compiled in accordance with the Fifth Edition of the IMF’s Balance of Payments Manual, September 1993 - 60 -
As for the current account, current payments rose by US$ 4.3 billion to US$ 18.9 billion, owing to a rise in import payments by 26.3% and service payments by 40.4%. On the other hand, current receipts mounted by US$ 3.6 billion, to reach US$ 20.1 billion. This was a reflection of a 35.4% pickup in merchandise export proceeds, 13.5% in service receipts and 35.1% in private transfers. Meanwhile, official transfers fell steeply by 51.1%.
Summary of Current Receipts and Payments (US$ mn) July / December 2004/2005 % 2005/2006 % Change (-) Current Receipts 16461.7 100.0 20060.2 100.0 3598.5 Export proceeds* 6335.7 38.5 8575.5 42.7 2239.8 Service receipts 7701.6 46.8 8740.0 43.6 1038.4 Private transfers (net) 1808.5 11.0 2443.6 12.2 635.1 Official transfers (net) 615.9 3.7 301.1 1.5 (314.8) Current payments 14630.0 100.0 18932.4 100.0 4302.4 Import payments** 11428.9 78.1 14436.5 76.3 3007.6 Service payments 3201.1 21.9 4495.9 23.7 1294.8 *Calculated on FOB basis, as their value is calculated at the customs borders of the Egyptian economy, i.e., excluding the costs of shipment, insurance and freight. They include exports of free zones to the rest of the world. **Calculated on CIF basis, i.e., including the costs of shipment, insurance and freight. They include imports of free zones from the rest of the world.
Some of the external balance indicators showed a decrease as illustrated in the following table:
Current receipts/Payments Coverage Ratio (%)
July / December 2004/2005 2005/2006 Merchandise Exports/ Merchandise Imports 55.4 59.4 Invisible Receipts/Invisible Payments 240.6 194.4 Current Receipts (excluding official transfers)/Current Payments 108.3 104.4 Current Receipts/Current Payments 112.5 106.0
- 61 -
Balance of Payments (US$ mn) July/December 2004/2005 2005/2006* Current Account 1831.7 1127.8 Current Account (excluding transfers ) -592.7 -1616.9 Trade Balance -5093.2 -5861.0 Exports ** 6335.7 8575.5 Oil and its products 2522.7 4732.0 Other exports 3813.0 3843.5 Imports ** -11428.9 -14436.5 Oil imports -1587.5 -2558.8 Other imports -9841.4 -11877.7 Services Balance 4500.5 4244.1 Receipts, of which : 7701.6 8740.0 Transport, of which 2046.7 2532.7 Suez Canal tolls (1601.9) (1762.5) Travel 3511.8 3932.6 Investment income 337.5 852.3 Payments, of which: -3201.1 -4495.9 Transport -428.6 -551.7 Investment income -518.2 -710.1 Transfers 2424.4 2744.7 Private (net) 1808.5 2443.6 Official (net) 615.9 301.1 Capital and financial Account -357.7 2804.3 Capital account 0.0 -40.0 Financial account -357.7 2844.3 Direct Investment in Egypt (net)*** 1839.4 3313.2 Direct Investment Abroad -11.9 -64.9 Portfolio Investment in Egypt (net) 121.1 2818.1+ Portfolio Investment Abroad 252.8 -347.7 Other Investments (net) 2559.1 -2874.4 Net Errors and Omissions -760.0 -1380.2 Overall Balance 714.0 2551.9 Change in Reserve Assets, Increase (-)++ -714.0 -2551.9 * Provisional figures ** Including exports and imports of free zones *** Including the FDI in the oil sector and the proceeds of selling local enterprises to foreign investors by 10% or more of the capital of the enterprise + Including foreigners’ subscriptions for Egyptian bonds and notes ++ The increase in balances takes a negative sign, as it represents an outflow on the debit side, and vice versa. - 62 -
4/2/2: Trade Balance
During July/December of the FY 2005/2006, the value of external trade (the sum of exports and imports) remarkably grew by 29.5% over the corresponding period of the previous FY. This was ascribed to the measures taken by the government to stimulate the economic activity, especially customs and tax measures, in addition to the increase in world oil prices. The index of economic openness–external trade as a percentage of GDP - increased from 20.6% in the period of comparison to 22.4% during the period under review. The remarkable growth in the Egyptian export earnings (35.4%, to register US$ 8.6 billion) was accompanied by an increase in import payments by 26.3%, to reach US$ 14.4 billion.
Export proceeds posted a noticeable rise because oil exports grew dramatically by 87.6% to US$ 4.7 billion or 55.2% of total export proceeds during the period under review. Non-oil exports remained almost unchanged at their previous level (US$ 3.9 billion). Exports as a percentage of GDP improved to reach 8.3% during the period under review (against 7.3% during the corresponding period of the pervious FY).
Import payments moved up by US$ 3.0 billion, as a result of an increase in payments for imports of all commodity groups. However, the group of fuel, mineral oils and products was an exception, as it decreased by 11.7%. The rise in import payments was a reflection of strong domestic demand, on the one hand, and higher world prices of some goods, on the other. The fall in the LE exchange rate against the US$ helped push up the country’s demand for imports. Of the total imports, intermediate and investment goods accounted for 53.9%; a matter that may help increase production and accordingly enhance the economic growth in the future. The ratio of the import payments to GDP also increased to 14.0% (against 13.2%).
- 63 -
Against this background, the trade deficit expanded by 15.1%, to stand at US$ 5.8 billion (5.7% of GDP). Meanwhile, merchandise export proceeds/merchandise import payments stepped up to 59.4% against 55.4%.
CommodityTransactions
July/ December US$ bn
16.0 14.0 12.0 10.0 8.0 14.4 6.0 11.4 8.6 4.0 6.3 2.0 0.0 2005/2004 2006/2005
Exports Imports
4/2/2/1: Commodity Distribution of Exports and Imports
A- Exports by Degree of Processing
The distribution of merchandise exports showed an increase in the proceeds of all commodity groups during July/December, 2005/2006, in comparison with the same period of the previous FY. As such, the groups of fuel, mineral oils and products; raw materials; and semi-finished goods grew by 85.0%, 24.2% and 23.3%, respectively. On the other hand, finished goods underwent a slight decrease of 3.2%. - 64 -
Commodity Distribution of Exports by Degree of Processing
(US$ mn) July/December 2004/2005 2005/2006 Change Value % Value % Total 6335.7 100.0 8575.5 100.0 2239.8 1- Fuel, mineral oils and products 2612.7 41.2 4834.0 56.4 2221.3 2- Raw materials 232.5 3.7 288.7 3.4 56.2 3- Semi-finished goods 415.9 6.6 512.7 6.0 96.8 4- Finished goods 2530.7 39.9 2449.6 28.5 (81.1) 5- Miscellaneous products, unclassified 543.9 8.6 490.5 5.7 (53.4)
Oil export proceeds surged by 87.6%, as a result of the following developments: exports of liquefied natural gas sharply rose to reach US$ 1.1 billion (against US$ 38.0 million during the period of comparison), representing 50.3% of the increase in oil exports. Such a rise followed the full operation of the two production stages of the natural gas liquefaction project in Edco (exported to USA, Spain, France, South Korea and Belgium). Moreover, export proceeds of crude oil went up by 59.4%, to reach US$ 1.6 billion, owing to an increase of 15.3% in exported quantities and a pickup in export prices from US$ 30.6 to US$ 42.4 a barrel. Exports of oil products stepped up by 44.9%, to reach US$ 1.5 billion as an outcome of the increase in exported quantities by 12.3% and in the average export prices (from US$ 352.3 to US$ 454.7 per ton). Bunker and jet fuel scaled up by 7.6%, to reach US$ 468.0 million.
Non-oil export proceeds slightly rose by 0.8%, to record US$ 3.9 billion. The increase in export proceeds was mainly in aluminum, (unmixed); cast iron and products thereof; glass and articles thereof; organic and inorganic chemicals; and paper and its products. On the other hand, a decline was noticed in exports of iron and steel products; aluminum products; cement; cars, tractors and bicycles; animal and vegetable fats, greases & oils and products.
- 65 -
According to the sectoral Sectoral Distribution of Exports distribution of total export July/December 2005/2006 proceeds, the public sector came first with 47.1% of the total (oil
11.2% exports represented 96.3% of its total exports). The private sector 47.1% came second with 41.7% of the total (finished goods represented 41.7% 65.5%) then the investment sector came next with 11.2% (oil exports constituted 88.0% of its total exports). Public Sector Private Sector Investment Sector
Given the limited growth rate of non-oil exports, as seen in the above said trends, all sectors -especially the public and investment sectors- should play a more effective role in stimulating the exports of such type of goods.
Main Non-oil Exports In Terms of Value July/December 2005/2006
Electric machines & Appliances
Ready-made clothes
Articles of iron and steel
250 200 150 100 50 0
US$ m n
- 66 -
B- Imports by Degree of Use
Merchandise import payments rose by US$ 3.0 billion, or 26.3%, to reach US$ 14.4 billion, as a result of an increase in import payments of all commodity groups. The groups of raw materials, intermediate goods, investment goods and consumer goods grew by 33.5%, 31.6%, 31.5% and 16.7%, in order. In contrast, the group of fuel, mineral oils and products decreased by 11.7%.
Commodity Distribution of Imports by Degree of Use (US$ mn) July-December 2004/2005 2005/2006 Change Value % Value % Total 11428.9 100.0 14436.5 100.0 3007.6 1- Fuel, mineral oils and products 1212.2 10.6 1070.1 7.4 (142.1) 2- Raw materials 1932.0 16.9 2579.3 17.9 647.3 3- Intermediate goods 3208.2 28.1 4222.9 29.3 1014.7 4- Investment goods 2707.6 23.7 3560.1 24.7 852.5 5- Consumer goods 1465.8 12.8 1710.7 11.7 244.9 a- durables 444.8 3.9 451.9 3.1 7.1 b- non-durables 1021.0 8.9 1258.8 8.6 237.8 6- Miscellaneous products, 903.1 7.9 1293.4 9.0 390.3 unclassified
Non-oil imports amounted to US$ 11.9 billion, with a growth rate of 20.7%. The increase was mainly seen in iron and steel products; car accessories and spare parts; fertilizers; cars for transporting passengers; pharmaceuticals; electric appliances for telephones and telegraphs; and cement. On the other hand, a decline was noticed in the imports of wheat (43.2%), household electric machines; synthetic fibers; greases, fats, animal and vegetable oils and products; oleaginous fruits and seeds; aluminum and its products; and locomotives, carriages and railway and trams related equipment and their parts.
- 67 -
Oil imports reached US$ 2.5 billion, posting a significant growth of 61.2% and representing 17.7% of total import payments. The said growth was chiefly ascribed to the sharp increase in crude oil imports that resulted from world oil price hikes and the higher domestic consumption during the period under review. Meanwhile, imports of oil products rolled back by 10.6%.
Concerning the sectoral Sectoral Distribution of Imports July/December 2005/2006 distribution of total import payments, the private sector ranked first (its main imports
0.3% were crude oil and products, iron 35.9% and steel products and wheat). Second came the public sector (its chief imports were crude oil 63.8% and products; greases, fats, animal and vegetable oils and products; and agriculture machines), then the investment Public Sector Private Sector Investment Sector sector (its main imports were plastics and articles thereof; iron and steel products; china ware; and pharmaceuticals).
Main Non-oil Imports In Terms of Value July/December 2005/2006
Cars accessories and spare parts Pharmaceuticals
Plastic & articles thereof
Organic & inorganic chemicals
Wheat
Iron & steel products
900 800 700 600 500 400 300 200 100 0 US $ mn
- 68 -
4/2/2/2: Geographical Distribution of Export Proceeds and Import Payments
During July/December, 2005/2006, the EU countries continued to rank first among Egyptian export markets, with exports thereto reaching US$ 3.2 billion or 37.5% of total export proceeds. On top of this group was Italy, followed by Spain, the Netherlands, France, the UK and Germany (these countries accounted for 90.4% of total exports to the EU).
The USA came second, receiving exports of US$ 2.7 billion, or 31.3% of the total. Arab countries followed, with exports thereto amounting to US$ 1.0 billion or 11.9% of the total. In the forefront of the group came UAE, followed by Saudi Arabia, then Jordan, Libya and Tunisia (these countries represented 61.2% of total exports to the Arab countries).
Asian countries had a share of US$ 849.6 million or 9.9% of the total, with India coming first, followed by Singapore, Hong Kong and South Korea (these countries accounted for 79.3%).
Geographical Distribution of Exports July/December 2005/2006
African Countries Asian Countries 1.3% 9.9%
Arab Countries 11.9% Other countries 2.3% U.S.A. 31.3% EU 37.5% Other European Federal Russia & countries C.I.S. 5.5% 0.3% - 69 -
The EU countries remained the major exporter to Egypt, with imports therefrom reaching US$ 5.5 billion, or 38.0% of total import payments. The UK led this group, followed by France, Germany, Italy and the Netherlands (these countries combined accounted for 80.9%).
The USA occupied the second position, with import payments reaching US$ 2.6 billion or 18.2% of the total. Asian countries came third with a share of US$ 2.1 billion or 14.4% of the total. China headed this group, followed by Japan, South Korea, Malaysia and India (these countries constituted 73.7%).
Imports from the other European countries amounted to US$ 1.2 billion or 8.2% of the total (Switzerland accounted for 71.0%). The Arab countries’ imports recorded US$ 1.1 billion or 7.7%, with UAE in the forefront, followed by Saudi Arabia, Algeria, Kuwait and Bahrain (these countries represented 80.0%).
Geographical Distribution of Imports July/December 2005/2006
African Countries 0.5% Asian Countries Arab Countries 14.4% 7.7%
Australiaِ Other countries %0.6 9.1%
EU U.S.A. 38.0% 18.2%
Federal Russia & Other European C.I.S. countries 3.3% 8.2%
- 70 -
Geographical Distribution of Commodity Transactions (US$ mn) July/December Export Proceeds Import Payments Trade Balance 2004/2005 2005/2006 2004/2005 2005/2006 2004/2005 2005/2006 Grand Total 6335.7 8575.5 11428.9 14436.5 (5093.2) (5861.0) % 100.0 100.0 100.0 100.0 EU 2305.8 3212.0 3505.5 5481.4 (1199.7) (2269.4) % 36.4 37.5 30.7 38.0 Other European Countries 328.0 467.7 935.8 1178.7 (607.8) (711.0) % 5.2 5.5 8.2 8.2 Russian Federation & CIS 26.8 26.1 214.2 473.0 (187.4) (446.9) % 0.4 0.3 1.9 3.3 USA 2307.2 2683.7 2620.6 2627.5 (313.4) 56.2 % 36.4 31.3 22.9 18.2 Arab Countries 732.9 1018.0 973.6 1114.1 (240.7) (96.1) % 11.6 11.9 8.5 7.7 Asian Countries 525.1 849.6 1676.8 2085.4 (1151.7) (1235.8) % 8.3 9.9 14.7 14.4 African Countries 71.4 114.9 73.3 66.2 (1.9) 48.7 % 1.1 1.3 0.6 0.5 Australia 8.1 3.1 62.2 93.8 (54.1) (90.7) % 0.1 0.0 0.5 0.6 Other Countries & Regions 30.4 200.4 1366.9 1316.4 (1336.5) (1116.0) % 0.5 2.3 12.0 9.1
4/2/3: Balance of Services and Transfers
The surplus on services posted US$ 4.2 billion (4.1% of GDP) during the first half of FY 2005/2006, compared with US$ 4.5 billion (5.2% of GDP) during the same period a year earlier, recording a decrease of 5.7%. This was attributed to the increase in services payments by 40.4%, to reach US$ 4.5 billion, and in services receipts by 13.5%, to reach US$ 8.7 billion.
- 71-
Balance of Services (US$ mn) July/December Change (-) 2004/2005 2005/2006 Services Balance 4500.5 4244.1 (256.4) Receipts 7701.6 8740.0 1038.4 Transportation 2046.7 2532.7 486.0 Travel 3511.8 3932.6 420.8 Investment income 337.5 852.3 514.8 Government receipts 67.9 104.6 36.7 Other receipts 1737.7 1317.8 (419.9) Payments 3201.1 4495.9 1294.8 Transportation 428.6 551.7 123.1 Travel 614.2 804.6 190.4 Investment income 518.2 710.1 191.9 Government payments 286.1 630.2 344.1 Other payments 1354.0 1799.3 445.3
All the components of services payments contributed to this increase. Investment income payments increased by 37.0%, as a result of the surge in the profit transfers of foreign oil companies and in the payments of portfolio investment income. Travel payments recorded an increase of 31.0%, due to larger expenditure on travel and medical treatment abroad, in addition to higher payments of travel companies and hotels, and for pilgrimage and Umra. Other payments∗ rose by 32.9%, due to increases in the external transfers of the oil sector, the commissions of securities brokerage, payments for communication services, insurance payments, royalties, license fees and payments for construction and contracting services. Transportation payments rose by 28.7%, as an outcome of the increase in external transfers of foreign aviation and navigation companies, the amounts transferred abroad from the accounts of Egyptian navigation companies and external transfers for repairing airplanes at foreign airports. Government expenditures rose to US$ 630.2 million, because of the increase in the expenses of Egyptian embassies abroad and in the salaries and expenses of the employees of Egyptian representation offices abroad.
∗ The main components of this item are the amounts transferred abroad by Egyptian and foreign companies ,and payments for construction and contracting and communication services.
- 72 -
As for services receipts, all items increased, with the exception of the “other receipts”. Investment income receipts significantly increased by 152.5%, as a result of the acceleration in interest rates on the banking system deposits, in light of the higher world interest rates. Government receipts augmented by 54.1%, due to the increase in the expenses of foreign embassies in Egypt, and the expenses of the Arab League and international institutions resident in Egypt. Transportation receipts edged up by 23.7%, chiefly because of the increase in the receipts of the Suez Canal by 10.0% (8.8% of the current receipts) under larger number of transiting ships and their net tonnage. Other influencing factors were the rises in the receipts of Egyptian navigation and aviation companies and in the receipts of the SOMED pipeline. Travel receipts∗ (tourism revenues) rose by 12.0%, to reach US$ 3.9 billion, representing 19.6% of current receipts. This was an outcome of the increase in the average tourist spending per night from US$ 75 to US$ 85 and the decrease in tourist nights from 46.8 million nights to 46.3 million. Other receipts∗∗showed a decrease of 24.2%, as a chief result of the decline in invisible receipts of the oil sector; and the receipts of communication services.
Net unrequited transfers went up by 13.2% to US$ 2.7 billion, with an increase of US$ 320.3 million. This reflected the rise in net private transfers by 35.1%, owing to the increase in workers' remittances by 38.6%, to stand at US$ 2.4 billion or 99.3% of total inflows of private transfers. Official transfers decreased by 51.1%, to total US$ 301.1 million because of the retreat of cash and in-kind grants.
∗ Calculated on the basis of the number of tourist nights by departures, multiplied by the average tourist spending per night.
∗∗ The main components of this item are the receipts of communication services, receipts of foreign companies, legal and consultation fees and charges, agencies commissions and fees and the invisible receipts of the oil sector.
- 73 -
Unrequited Transfers (US$ mn) July-December Change (-) 2004/2005 2005/2006 Total 2424.4 2744.7 320.3 1- Official Transfers (Net) 615.9 301.1 -314.8 - Inward cash grants 217.9 105.7 -112.2 - Other inward grants 419.1 208.1 -211.0 - Outward grants -21.1 -12.7 8.4 2- Private Transfers (Net) 1808.5 2443.6 635.1 - Workers' remittances 1783.5 2471.3 687.8 - Other transfers 33.1 18.6 -14.5 - Foreigners' transfers abroad -8.1 -46.3 -38.2
4/2/4: Capital and Financial Account
Capital and financial account revealed a net inflow of US$ 2.8 billion (against a net outflow of US$ 0.4 billion). This was an outcome of the improvement in the foreign investment (direct∗ and portfolio**), as it recorded a net inflow of US$ 12.0 billion and a net outflow of US$ 5.9 billion during the first half of FY 2005/2006 (against US$ 2.9 billion and US$ 0.9 billion, respectively, during the corresponding period of the previous FY). This resulted in an increase in the two types of net foreign investment in Egypt, achieving an inflow of US$ 6.1 billion. Of this amount net FDI accounted for US$ 3.3 billion, including net investments of US$ 0.9 billion in the oil sector and US$ 520.2 million representing the proceeds of selling some local companies to foreign investors. During the
∗ Representing total flows of FDI to Egypt (less capital repatriation) and foreign investors' equity participation in local enterprises that is equal or more than 10% of the capital of any enterprise
** Representing foreigners' net portfolio transactions (according to the CMA statement). This excludes foreign investors' equity participation in local enterprises that is equal or more than 10% of the capital of any enterprise. It includes data of the transactions on Egyptian bonds and notes
- 74 -
corresponding period, net foreign investment inflows amounted to US$ 2.0 billion, of which FDI represented US$ 1.8 billion including US$ 1.4 billion as investments in the oil sector and US$ 28.0 million as the proceeds of selling some local companies to foreign investors).
The foreigners' transactions on the Egyptian Stock Exchange unfolded net purchases of US$ 49.3 million, against US$ 125.1 million. Their purchases and sales amounted to US$ 4795.4 million and US$ 4746.1 million, respectively (against US$ 1034.7 million and US$ 909.6 million). It is noteworthy that net portfolio investment in Egypt included banks’ and insurance companies’ purchases of dollar-denominated sovereign bonds, in the amount of US$ 34.8 million, during the period under review (against US$ 4.0 million during the corresponding period) and foreigners' subscriptions for Egyptian bonds and notes at a value of US$ 2.8 billion.
Concerning the net outflow of other assets and liabilities, it mounted to US$ 3.6 billion (against US$ 3.3 billion), reflecting the change in banks’ foreign assets and liabilities, the CBE’s non-reserve foreign assets and the counterpart of some items of the current account. It is to be noted that other assets (other) recorded a net outflow of only US$ 0.9 billion (against US$ 1.4 billion), primarily as a result of the increase in banks’ purchases of foreign banknotes.
As for medium- and long-term borrowing transactions, they revealed net repayments of US$ 107.0 million (against US$ 331.4 million). This was attributed to the increase in total repayments to post US$ 1099.2 million (against US$ 900.1 million) and the increase in total disbursements to record US$ 992.2 million (against US$ 568.7 million).
- 75 -
Capital and Financial Account (US$ mn) July/December 2004/2005 2005/2006* Capital and Financial Account -357.7 2804.3 Capital Account 0.0 -40.0 Financial Account -357.7 2844.3 Direct Investment in Egypt (Net)** 1839.4 3313.2 Direct Investment Abroad -11.9 -64.9 Portfolio Investment in Egypt (Net) 121.1 2818.1 Bonds*** -4.0 2768.8 Portfolio Investment Abroad 252.8 -347.7 Other Investments (Net) -2559.1 -2874.4 - Disbursements 1684.2 1830.6 • Medium- and long-term loans 499.2 485.7 • International and regional institutions 439.6 419.1 • Bilateral loans 59.6 66.6 • Suppliers' and buyers' credit, medium- and long-term 69.5 506.5 • Suppliers' and buyers' credit, short-term (net) 1115.5 838.4 - Repayments -900.1 -1099.2 • Medium- and long-term loans -752.1 -866.5 • International institutions -321.7 -423.5 • Bilateral loans -430.4 -443.0 • Suppliers' and buyers' credit, medium- and -148.0 -232.7 long-term - Other Assets -3258.3 -3324.2 CBE -20.5 -43.3 Banks -1826.9 -2420.7 Others -1410.9 -860.2 - Other Liabilities -84.9 -281.6 CBE 6.8 5.2 Banks -91.7 -286.8
* Preliminary figures ** Including net FDI of US$ 0.9 billion in the oil sector in the first half of FY 2005/2006 against US$ 1.4 billion, and the proceeds of selling some companies and production assets to foreign investors in the amount of US$ 520.2 million against US$ 28.0 million. *** US dollar-denominated sovereign bonds, issued pursuant to Law No. 147 of 2001, and floated on international and local markets on 1/7/2001. They comprise 5-year bonds at a nominal value of US$ 500 million and a cost of 7.625%, and 10-year bonds at a nominal value of US$ one billion and a cost of 8.75%, along with foreigners’ subscriptions for Egyptian bonds and notes in the amount of US$ 2.8 billion.
- 76 -
4/3: International Finance
According to the international finance data, net resource inflows rose by some US$ 3.1 billion to US$ 6.8 billion during July/Dec., 2005/2006. This was ascribed to the increase in foreign investment in Egypt (FDI and portfolio), as it achieved a net inflow of US$ 6.1 billion. Specifically, FDI in Egypt rose -on net basis- to an inflow of US$ 3.3 billion (including net FDI of US$ 852.7 million in the oil sector), against US$ 1.8 billion (including FDI of US$ 1.4 billion in the oil sector). Similarly, portfolio investment went up -on net basis- to an inflow of US$ 2.8 billion (including foreigners’ purchases of Egyptian notes and bonds).
As for medium- and long- term loans and facilities, they resulted in net repayments of US$ 107.0 million, against US$ 331.4 million during the corresponding period of the previous FY. - 77 -
Net Resource Flows (US mn) July/Dec. Change 2004/2005 2005/2006+ Total Net Flows 3601.4 6751.2 3149.8 - External Debt 784.1 731.4 -52.7 • Bilateral loans -370.8 -376.4 -5.6 Disbursements 59.6 66.6 7.0 Principal repayments -430.4 -443.0 -12.6 • International Institutions’ Loans 117.9 -4.4 -122.3 Disbursements 439.6 419.1 -20.5 Principal repayments -321.7 -423.5 -101.8 • Medium- and Long-term Suppliers’ and Buyers' Credit -78.5 273.8 352.3 Disbursements 69.5 506.5 437.0 Principal repayments -148.0 -232.7 -84.7 • Short-term Suppliers’ and Buyers' Credit (Net) 1115.5 838.4 -277.1 - Official Grants (Net) 615.9 301.1 -314.8 - Direct Investment in Egypt (Net)++ 1839.4 3313.2 1473.8 - Direct Investment Abroad -11.9 -64.9 -53.0 - Portfolio Investment in Egypt (Net) 121.1 2818.1+++ 2697.0 • Bonds -4.0 2768.8 2772.8 - Portfolio Investment Abroad 252.8 -347.7 -600.5 + Provisional ++ Including net FDI in the oil sector in an amount of US$ 852.7 million, against US$ 1377.2 million +++ Including foreigners’ purchases of Egyptian bonds and notes
- 78 -
Resources from abroad (net inflows less interest payments & profit transfers) revealed a net inflow of US$ 6.0 billion during July/Dec. of FY 2005/2006, due to the pickup in net inflows by some US$ 3.1 billion, to reach US$ 6.8 billion. This was offset by the increase in outflows by about US$ 191.9 million, to post US$ 710.1 million, due to the rise in the profit transfers of both direct and portfolio investments. Resources from Abroad (US$ mn) July/Dec. 2004/2005 2005/2006+ Change +(-) Resources from Abroad (1+2) 3083.2 6041.1 2957.9 1- Net Inflows 3601.4 6751.2 3149.8 2- Outflows (Interest Payments and Profit Transfers) -518.2 -710.1 -191.9 2/1- External Loans and Facilities -270.5 -244.5 26.0 . Bilateral loans -185.2 -166.7 18.5 . International institutions’ loans -66.2 -64.6 1.6 . Suppliers’ and buyers’ credit -19.1 -13.2 5.9 2/2- Deposits at Egyptian Banks -26.5 -25.4 1.1 2/3- Profit Transfers of Direct Investment -192.6 -375.2 -182.6 2/4- Profit Transfers of Portfolio Investment -28.6 -65.0 -36.4 + Provisional
4/3/1: Direct Investment in Egypt
Net inflows of direct investment in Egypt remarkably went up during July/Dec. of FY 2005/2006, to register US$ 3.3 billion, due to the following developments: investment inflows from the USA stepped up by some US$ 1.6 billion to US$ 2.5 billion, and from the EU countries by US$ 1.3 billion to around US$ 1.6 billion, ( mainly from the UK, Spain, France and Greece). Investment inflows from the Arab countries rose by some US$ 149.7 million to US$ 170.7 million. Moreover, investment inflows from the rest of the world amounted to US$ 203.0 million. On the other hand, capital repatriations registered US$ 1.1 billion, against US$ 2.1 million during the corresponding period. - 79 -
Direct Investment in Egypt
(US$ mn) July/ December 2004/2005 2005/2006 Change +(-) Flows of Direct Investment in Egypt (Net) 1839.4 3313.2 1473.8 Inflows 1841.5 4422.7 2581.2 The USA 911.4 2491.6 1580.2 The EU* 236.1 1557.4 1321.3 Germany 1.7 82.4 80.7 France 6.7 266.8 260.1 The UK 18.7 734.2 715.5 Italy 0.2 8.2 8.0 Greece 0.4 138.8 138.4 Spain 320.3 320.3 The Netherlands 207.8 3.2 -204.6 Norway 0.6 2.3 1.7 Denmark 0.6 0.6 Austria 0.4 0.4 Sweden 0.2 0.2 Arab Countries 21.0 170.7 149.7 Saudi Arabia 1.2 12.2 11.0 The UAE 1.6 28.2 26.6 Kuwait 16.4 25.5 9.1 Libya 0.1 3.8 3.7 Lebanon 0.1 87.3 87.2 Bahrain 0.0 11.8 11.8 Qatar 1.3 1.3 0 Jordan 0.2 0.4 0.2 Others 0.1 0.2 0.1 Other Countries 673.0 203.0 -470.0 Switzerland 7.7 11.8 4.1 Singapore 19.0 -19.0 Japan 31.8 4.1 -27.7 Canada 10.1 -10.1 China 0.7 0.7 Australia 0.1 0.1 Taiwan 0.4 -0.4 India 9.0 -9.0 Romania 10.5 10.5 Other countries 595.0 175.8 -419.2 Capital Repatriation -2.1 -1109.5 -1107.4 - 80 -
4/3/2: External Grants
Net official grants retreated by some US$ 314.8 million or 51.1% to US$ 301.1 million during July/Dec., 2005/2006 against US$ 615.9 million during the corresponding period. This was mainly an outcome of the fall in grants from the USA.
Net Official Transfers (US$ mn) July/Dec. Change 2004/2005 2005/2006 Net Official Transfers 615.9 301.1 -314.8 - Inward cash grants 217.9 105.7 -112.2 - Other inward grants 419.1 208.1 -211.0 - Outward grants -21.1 -12.7 8.4
According to the Ministry of International Cooperation, total grant commitments during July/Dec., 2005/2006 retreated by 34.3% to US$ 257.3 million. This was basically due to the significant fall in the value of commitments with the USA.
- 81 -
New Commitments and Net Actual Flows of Official Transfers
(US$ mn) Commitments Actual Flows July/Dec. 2004/2005 2005/2006 2004/2005 2005/2006 Net Inflows 615.9 301.1 Inflows 391.4 257.3 637.0 313.8 The USA 280.6 124.1 453.1 196.0 Japan 0.5 0.1 0.3 Germany 181.7 20.7 The UK 0.1 Italy 1.1 0.1 Belgium 95.1 Canada 15.2 1.0 1.4 Austria 0.1 EU 124.4 US Agency for International Development 19.1 Arab Fund for Economic and Social Development 6.7 World Bank 0.6 Kuwaiti Fund for Development 1.0 European Investment Bank 76.5 Capital Repatriation -21.1 -12.7
According to the sectoral breakdown of grant commitments, there was a fall in the value of commitments by some US$ 134.1 million during July/Dec., 2005/2006. This resulted from the 60.5% retreat in total commitments for the services sectors to US$ 150.8 million. However, grant commitments for the production sectors rose to US$ 106.5 million against US$ 9.4 million during the corresponding period of the previous FY.
- 82 -
Breakdown of External Grant Commitments (by Beneficiary) (US$ mn) July/Dec. Change 2004/2005 % 2005/2006 % Total 391.4 100.0 257.3 100.0 -134.1 Production Sectors: 9.4 2.4 106.5 41.4 97.1 - Agriculture and irrigation 2.0 0.5 103.9 40.4 101.9 - Manufacturing 2.6 1.0 2.6 - Potable water and sanitary sewage 3.4 0.9 -3.4 - Building and construction 4.0 1.0 -4.0 Services Sectors: 382.0 97.6 150.8 58.6 -231.2 -Transport, communications and information 5.6 2.2 5.6 Wholesale and retail trade 200.0 51.1 -200.0 - Intermediation and subsidiary activities 87.5 22.4 -87.5 - General government 31.3 8.0 72.9 28.3 41.6 - Education and health 63.2 16.1 62.3 24.2 -0.9 - Others 10.0 3.9 10.0
4/3/3: External Debt
The external debt balance (public and private), denominated in the US dollar, with its all maturities, reached US$ 29.7 billion at end of Dec. 2005, up by US$ 0.7 billion over its level at end of June 2005. This was ascribed, on the one hand, to a rise in net disbursements by some US$ 1.2 billion, (disbursements of US$ 2.6 billion less principal repayments of US$ 1.4 billion). On the other hand, there was a US$ 0.5 billion drop in external debt due to the retreat in the prices of most currencies of borrowing vis-à-vis the US dollar at end of Dec. 2005.
- 83 -
Medium- and long-term loans amounted to some US$ 28.0 billion, representing 94.4% of the external debt. Medium- and long-term loans owed to Paris Club member countries (rescheduled or non-rescheduled bilateral loans) amounted to some US$ 18.5 billion or 62.5% of total external debt. In the meantime, debt due to non-members of Paris Club reached some US$ 753.8 million or 2.5%.
Structure of External Debt (US$ mn) Balances at End of June 2005 Dec. 2005 Change Value % Value % Total External Debt 28948.8 100.0 29691.6 100.0 742.8 - Rescheduled bilateral debts 15734.1 54.4 15118.1 50.9 -616.0 • Concessional 7836.4 27.1 7577.8 25.5 -258.6 • Non-concessional 7897.7 27.3 7540.3 25.4 -357.4 - Other bilateral loans 4291.3 14.8 4184.8 14.1 -106.5 • Paris Club countries 3529.9 12.2 3431.0 11.6 -98.9 • Other countries 761.4 2.6 753.8 2.5 -7.6 -International and regional institutions 5058.2 17.5 5173.8 17.4 115.6 -Suppliers’ and buyers’ credit 781.6 2.7 1238.9 4.2 457.3 - Egyptian bonds and notes* 613.6 2.1 1828.8 6.2 1215.2 - Long -term deposits 500.0 1.7 400.0 1.3 -100.0 - Short-term debts 1854.8 6.4 1654.1 5.6 -200.7 • Deposits 819.3 2.8 690.0 2.3 -129.3 • Facilities 1035.5 3.6 964.1 3.3 -71.4 Debt of the private sector (non-guaranteed) 115.2 0.4 93.1 0.3 -22.1 * The nominal value of the euro bonds (US$) reached US$ 1500 million. Following resident financial institutions’ purchase of US$ 921.2 million of these bonds, on the secondary market, external debt - arising from bond issue - reached US$ 578.8 million.
- 84 -
The external debt owed to international and regional institutions amounted to some US$ 5.2 billion, or 17.4% of the total, at end of Dec. 2005. Of this figure, public sector debt represented 93.0%. Moreover, the balance of Egyptian bonds and notes (non-residents’ holdings) reached some US$ 1.8 billion or 6.2%, while suppliers’ and buyers’ credit recorded some US$ 1.2 billion or 4.2%.
As for the balances of short-term debt, they posted about US$ 1.7 billion or 5.6%, of which 53.5% is owed by the public sector.
External Debt by Type En d o f De c e m be r (US$ mn)
35000 Private sector debt (non- Long -term deposits guaranteed) 30000
25000 Suppliers' & buyers' 20000 credit Rescheduled bilat eral debt Egyptian bonds 15000 and notes
10000 Other bilateral debt 5000 International & Regional Institutions 0 Short-term debt 2003 2004 2005
It is worthy to note that the external debt owed by the public sector accounted for the bulk of total external debt, as it reached US$ 28.4 billion or 95.7% of the total at end of Dec. 2005.
The breakdown of external debt by creditor indicates that 54.0% of the total is due to the main four members of Paris Club, namely the USA (15.5%); France (15.1%); Japan (12.7%); and Germany (10.7%). In addition, the combined debt due to the Arab countries reached 3.9%, mainly to Kuwait (1.7%); Saudi Arabia (0.7%); the UAE (0.4%) and Bahrain (0.3%). The debt owed to the international and regional institutions reached 17.4%, mainly the European Investment Bank (5.0%) and the International Development Association {IDA} (4.5%). - 85 -
External Debt by Main Creditor (US$ mn) June 2005 Dec. 2005 At End of Value % Value % Total External Debt 28948.8 100.0 29691.6 100.0 USA 4581.4 15.8 4589.9 15.5 Japan 4064.3 14.0 3783.7 12.7 EU Countries 11266.0 39.0 11369.1 38.2 France 4763.3 16.5 4480.6 15.1 Germany 3355.5 11.6 3172.8 10.7 Spain 824.0 2.8 825.0 2.8 Italy 802.7 2.8 768.8 2.6 UK 574.7 2.0 1227.1 4.1 Austria 551.0 1.9 525.2 1.8 Others 394.8 1.4 369.6 1.1 Arab Countries 1400.1 4.8 1161.0 3.9 Kuwait 469.4 1.6 509.3 1.7 Saudi Arabia 249.3 0.9 195.2 0.7 UAE 149.6 0.5 124.7 0.4 Bahrain 146.8 0.5 81.8 0.3 Others 385.0 1.3 250.0 0.8 Other Countries 1965.2 6.8 1785.3 6.1 Switzerland 464.1 1.6 438.3 1.5 Canada 245.9 0.8 244.9 0.8 Australia 225.3 0.8 193.4 0.7 China 111.0 0.4 111.4 0.4 Others 918.9 3.2 797.3 2.7 Egyptian Bonds and Notes 613.6 2.1 1828.8 6.2 International and Regional Institutions 5058.2 17.5 5173.8 17.4 IDA 1375.1 4.8 1337.0 4.5 European Investment Bank 1103.7 3.8 1495.2 5.0 Arab Fund for Economic and Social Development 996.3 3.4 983.4 3.3 African Development Fund (ADF) and Bank (ADB) 521.1 1.8 444.7 1.5 World Bank 397.2 1.4 379.8 1.3 AMF 326.1 1.1 380.8 1.3 Islamic Development Bank (Jeddah) 236.4 0.8 64.0 0.2 Other Institutions 102.3 0.4 88.9 0.3 - 86 -
Distribution of external debt by debtor illustrates that the debt balance owed by the central government and local government increased by some US$ 514.4 million to US$ 18.7 billion, other sectors by some US$ 29.7 million to US$ 7.8 billion, and banks by around US$ 251.0 million to US$ 2.3 billion. On the other hand, the debt owed by the monetary authority declined by about US$ 52.3 million to US$ 930.7 million at end of Dec. 2005. Nevertheless, such developments have not resulted in any tangible change in the structure of external debt by debtor. As such, the government debts still accounted for the bulk of 63.1% of the total external debt, followed by the other sectors (26.1%), banks (7.7%), and the monetary authority (3.1%) at end of Dec. 2005.
External Debt by Debtor (US$ mn) At End of June 2005 Dec. 2005 Change Value % Value % Total External Debt 28948.8 100.0 29691.6 100.0 742.8 Medium- and long-term debt 27094.0 93.6 28037.5 94.4 943.5 Short-term debt 1854.8 6.4 1654.1 5.6 -200.7 Central Government and Local Government 18231.0 63.0 18745.4 63.1 514.4 Medium- and long-term debt 18231.0 63.0 18745.4 63.1 514.4 Short- term debt 0.0 0.0 0.0 0.0 0.0 Monetary Authority 983.0 3.4 930.7 3.1 -52.3 Medium- and long-term debt 833.0 2.9 780.7 2.6 -52.3 Short- term debt 150.0 0.5 150.0 0.5 0.0 Banks 2010.5 6.9 2261.5 7.7 251.0 Medium- and long-term debt 1063.9 3.6 1571.7 5.3 507.8 Short-term debt 946.6 3.3 689.8 2.4 -256.8 Other Sectors 7724.3 26.7 7754.0 26.1 29.7 Medium- and long-term debt 6966.1 24.1 6939.7 23.4 -26.4 Short- term debt 758.2 2.6 814.3 2.7 56.1
As for external debt service, total repayments of debt service (interest and principal repayments) rose by US$ 174.4 million to some US$ 1.4 billion during
- 87 - the period under review. Such a rise was attributable to the increase in principal repayments by US$ 199.1 million to US$ 1.1 billion and the decline in interest payments by some US$ 24.7 million to around US$ 268.6 million.
The increase in the debt service was mitigated by the 21.9% growth in the exports of goods and services, and in transfers during July/Dec., 2005/2006. As a result, the ratio of debt service to current receipts (including transfers) improved to 6.8% against 7.2% during the preceding corresponding period. Moreover, the ratio of debt service to the export proceeds of goods and services was positively affected, falling to 7.9% from 8.5% during the previous corresponding period.
Likewise, the ratio of the external debt to GDP improved, posting 27.1% at end of Dec. 2005 (against 35.6%). The ratio of short-term debt to total debt reached 5.6% (against 5.5%) and to NIR 7.6% (against 11.1%). Concurrently, external debt per capita fell to US$ 413.0 at end of Dec. 2005 from US$ 432.6 at end of Dec. 2004.
Main Indicators of External Debt
(%) July/Dec. 2003/2004 2004/2005 2005/2006 Debt balance/GDP 38.8 35.6 27.1 Debt balance/ exports of goods and services 277.3 221.5 171.5 Debt service/ exports of goods and services 10.5 8.5 7.9 Debt service/ current receipts (including transfers ) 9.0 7.2 6.8 Interest payments*/ exports of goods and services 2.8 2.1 1.6 Interest payments*/current receipts (including transfers ) 2.4 1.8 1.3 Short-term debt/total debt (at end of the period) 5.7 5.5 5.6 Short-term debt/net international reserves (at end of the period) 11.9 11.1 7.6 Debt per capita (US$) (at end of the period) 441.4 432.6 413.0
• including interest payments on dollar-denominated sovereign bonds
- 88 -
New commitments on loans and facilities during July/Dec., of FY 2005/2006 amounted to only US$ 897.8 million against US$ 976.6 million during the corresponding period of the previous FY. 52.0% of these commitments were suppliers’ and buyers’ credit in the amount of US$ 467.2 million. Moreover, US$ 430.6 million or 48.0% of the total external debt was mainly loans from international and regional institutions {African Development Bank, Arab Fund for Economic and Social Development, the European Investment Bank, and the Islamic Development Bank (Jeddah)}.
As shown in the following graph tackling the distribution of external debt by component currencies, the US dollar accounted for the bulk of total external debt (43.7%), due to the existence of outstanding obligations in US dollar towards some creditor countries other than the USA. The euro followed (30.4%), then came the Japanese yen and the other currencies.
External Debt by Major Currencies End of December 2005
Japanese Yen Kuwaiti Dinar 11.9% 4.9% EURO 30.4%
Pound Sterling 0.8% SDR 4.5%
Swiss Franc Other Currencies 1.8% 2.0% USD 43.7%
- 89 -
5-Cotton 5/1: Domestic Developments
The follow-up of developments on both sides of cotton supply and demand in the 2005/2006 season shows the following:
5/1/1: Production
According to the Cotton Arbitration and Testing General Organization (CATGO), the preliminary estimates of the area cultivated in cotton during the 2005/2006 season reached some 650 thousand feddans, up by 1.1% over the targeted area during this season. However, this area would decrease by 11.1%, when compared with the actual figure of the previous season. 76.3% of the 2005/2006 area was cultivated in long staple, while the rest was cultivated in extra- long staple.
Area and Production by Cotton Variety
Area Production (Thousand Feddans) (Thousand Metric Cantars )
Change Change
(-)+ (-)+ 2004/2005* 2005/2006** 2004/2005* 2005/2006** % %
Final Targeted Estimates Final Targeted Estimates
Total 731 100.0 643 650 100.0 (11.1) 5833 100.0 5513 4303 100.0 (26.2) Extra- long staple 197 26.9 168 154 23.7 (21.8) 1551 26.6 1401 957 22.2 (38.3) Long staple 534 73.1 475 496 76.3 (7.1) 4282 73.4 4112 3346 77.8 (21.9) Source: CBE (Alexandria Branch), Securities and Cotton Department • The Holding Company for Cotton, Spinning, Weaving and Ready-Made Clothes. ** CATGO
- 90 -
According to the estimates of CATGO, total production during the 2005/2006 season reached some 4.3 million metric cantars, i.e. 21.9% less than the targeted amount and 26.2% less than the total output in the previous season. This came as a result of the decline in the cultivated area and the retreat in the average productivity per feddan to some 6.6 cantars/feddan (against some 8.0 cantars/feddan in the previous season).
5/1/2: Stock and Total Supply
Due to the decline in the estimated opening stock of the reporting season (to only 123 thousand metric cantars) and in the estimated output, cotton supply decreased by 28.7% as compared with the previous season, to post 4.4 million metric cantars. This drop is the impact of the cancellation of floor prices during this season, a matter that diverted farmers from growing cotton to more profitable crops.
Total Supply (Thousand Metric Cantars) 2004/2005 2005/2006 Season Season Change (-)+ Final Estimates* Total Supply 6210 4426 (1784) Opening stock 377 123 (254) output 5833 4303 (1530) Source: Ibid • CATGO
- 91 -
Egyptian Cotton Position M. metric Cantars 7.0 6.0
5.0
4.0
3.0
2.0
1.0
0.0 Opening Stock Crop Domestic Export Commitments Consumption Season 2004/2005 Season 2005/2006
5/1/3: Domestic Consumption
Local mills received about 724 thousand metric cantars of cotton since the beginning of the 2005/2006 season till the end of Dec. 2005, against 1224 thousand metric cantars in the corresponding period of the previous season, down by 40.8%. Total Use (Thousand Metric Cantars) 2004/2005 Season 2005/2006 Season Till Till Till 31/12/2005 Its End 31/12/2004 Total Use 6087 2940 1948 Domestic consumption 3247 1224 724 Export commitments 2840 1716 1224 Source: Ibid
- 92 -
According to the data of the Holding Company for Cotton, Spinning, Weaving and Ready-Made Clothes, cotton importation of some 579 thousand metric cantars is expected during the 2005/2006 season, against 784 thousand metric cantars during the same period of the previous season.
5/1/4: Export Commitments
The Alexandria Cotton Exporters’ Association (ALCOTEXA) announced the selling guidelines for cotton exports, effective as from 16/10/2005. In this context, export prices are to be set by agreement between the buyer and seller, and according to the shipment date. Moreover, ALCOTEXA is to announce periodically the weighted average of contracted selling prices. ALCOTEXA’s approval of the submitted offers is a prerequisite for contracting.
Moreover, ALCOTEXA announced the contracting terms and conditions, clarifying that the means of payment should be determined on the basis of the agreement between the buyer and seller, according to the Egyptian banking norms. In addition, the shipment of all cotton varieties contracted upon should be effected at a date no later than 31/8/2006. Registration of contracts on the offers approved by ALCOTEXA will be allowed for buyers, pending their settlement of contracts of previous seasons. These guidelines included also other terms related to the calculation of the expenses of storage, insurance and fines for non-execution of all, or part of, the contracts. In case any dispute related to shipment, contracting or arbitration procedures arises, the buyer/seller may refer the issue to ALCOTEXA for arbitration, in its capacity as the competent authority.
The quantity contracted upon for exportation reached some 1.2 million metric cantars. As such, commitments on long staple cotton represented about 79.2% of the total, while those on extra long staple accounted for the remainder. The private sector implemented 56.6% of total contracts, while the remainder was executed by the public sector.
- 93 -
Export Commitments by Importing Country
(Thousand Metric Cantars) 2004/2005 Season 2005/2006 Season Till End-Dec. 2004 Till End-Dec. 2005 Total 1716.0 1224.0 Asian Countries, of which: 914.7 651.2 India 504.8 264.0 Pakistan 174.6 188.0 China 107.4 112.6 South Korea 42.4 22.0 EU Countries, of which 184.4 128.4 Italy 70.5 64.8 UK 33.2 35.3 Germany 54.0 21.7 Other European Countries 505.1 224.9 Switzerland 413.5 192.0 Turkey 91.6 32.9 Arab Countries, of which 54.6 150.1 UAE 54.6 150.1 USA 41.8 64.5 Other Countries 15.4 4.9 Source: Ibid
- 94 -
5/2: International Developments
According to the preliminary estimates of the International Cotton Advisory Committee (ICAC) for the 2005/2006 season, the opening stock rose by 34.6% over the previous season, to reach 50.2 million bales. Estimates of world output retreated by 4.6% to 115.3 million bales, because of the decline in the output estimates for the reporting season, below the earlier estimates of the same season, and the preceding one. The decline of the reporting season was pronounced in the production of China, the USA, Pakistan and the African Franc Zone. Another affecting factor was the decrease in the shares contributed by the Southern Hemisphere countries -Brazil, Australia and Argentina- to the total world output, because of insufficient rain during the season.
According to ICAC, world consumption is projected to rise by 3.5% to 110.7 million bales, under stronger demand for cotton by some importing mills to cover their needs. Most of the increase is expected to come from China. In the light of the aforementioned developments on both sides of supply and demand, the carryover is expected to increase by 7.2% at end of the season, to reach 53.8 million bales.
Position of World Cotton (Million Bales) 2004/2005 Season 2005/2006 Season Change +(-) %
Opening Stock 37.3 50.2 34.6 World output 120.8 115.3 (4.6) Total Supply 158.1 165.5 4.7 World consumption 107.9 110.7 3.5 Carryover 50.2 53.8 7.2 International trade* 34.4 40.5 17.7 Source: International Cotton Advisory Committee (ICAC). * Measured by average value of exports and imports. Metric cantars = 4.592958 bales.
- 95 -
As for the world prices of cotton, they experienced some fluctuations, as they trended downwards during Oct. and Nov. 2005, affected by the decline in the prices of New York Futures. Moreover, some cotton traders made discounts on their selling prices in an endeavour to spur demand on cotton. However, prices took an upward trend during Dec. 2005 due to the rise in the estimates of the world consumption of cotton for the 2005/2006 season. In addition, prospects for decline in the volume of production heightened because the crop was adversely affected by heavy rains during the harvest time. In addition, the exchange rate of the local currency of Brazil (riyal) rose against the US dollar, leading to higher prices for the Brazilian cotton in the international markets.
According to the above-mentioned developments, the ICAC forecasted a rise in the volume of world trade to as high as 40.5 million bales, up by 17.7% compared with the previous season.
- 96 -
6- Tourism
Tourism promotion campaigns were intensified during July/Dec., 2005/2006 in all tourism export markets, especially in the promising Eastern Asia (India and China). Consequently, all types of tourism were favorably affected, particularly the shopping and “second-home” types. Moreover, efforts continued to develop the Western North Coast to be an international tourist destination.
According to CAPMAS, the number of arrivals slightly declined during the period under review by 1.0%, and so did tourist nights by departures by 1.2%, as compared with the corresponding period of the previous FY. In the meantime, tourism revenues rose by 12.0% to US$ 3.9 billion, against US$ 3.5 billion during the same period of the previous FY. This was attributed mainly to the pickup of 13.3% in the average tourist spending per night.
Tourism indicators
2003/2004 2004/2005 2005/2006 July/Dec. Change July/Dec. Change July/Dec. Change +(-)% +(-)% +(-)% Number of arrivals (000s)* 3797 26.94389 15.6 4347 (1.0) Number of departures (000s) 3483 28.44130 18.6 4082 (1.2) Number of tourist nights of departures (000s) 38157 111.546823 22.7 46265 (1.2) Average spending per tourist a night (US$) 75.0 (34.8) 75.0 0.0 85.0 13.3 Tourism revenues (US$ mn.) 2861.8 37.9 3511.8 22.7 3932.6 12.0 Average tourist stay (night) 11.0 66.711.3 2.7 11.3 0.0 Source: CAPMAS and CBE * Excluding non-resident Egyptians coming for temporary purposes.
- 97 -
6/1: Tourists
The number of arrivals from all tourist groups during July/Dec., 2005/2006 totalled some 4.3 million, down by 42 thousand or 1.0% as compared with the corresponding period a year earlier. This was an outcome of a 7.4% decline in the number of tourist arrivals during the first quarter (July/Sept.) and a 6.7% rise in their number during the second quarter (Oct. /Dec.) of the period under review, compared with the preceding corresponding period. This reflects the efforts exerted to help tourism recover its positive growth rates.
The decline was confined to tourist arrivals from Western Europe, as their number fell by some 185 thousand or 8.3%, mostly from Italy (177 thousand), Germany (45 thousand) and France (25 thousand). In contrast, there was an increase in the number of arrivals from the UK by around 145 thousand. At the same time, tourists heading from Eastern Europe rose by some 65 thousand or 8.9%, mostly from the Commonwealth of Independent States.
Number of Arrivals
(In thousand) July/Dec. 2003/2004 2004/2005 2005/2006 Number Relative Change Number Relative Change Number Relative Change weight +(-)% weight +(-)% weight +(-)% Total 3797 100.0 26.9 4389 100.0 15.6 4347 100.0 (1.0) By Period July/Sept. 1939 51.1 23.8 2390 54.5 23.3 2214 50.9 (7.4) Oct./Dec. 1858 48.9 30.3 1999 45.5 7.6 2133 49.1 6.7 By Group Europe 2384 62.8 21.7 2949 67.2 23.7 2829 65.1 (4.1) Middle East 1023 27.0 45.7 995 22.7 (2.7) 1019 23.4 2.4 Africa 108 2.8 17.4 131 3.0 21.3 138 3.2 5.3 Americas 108 2.8 21.3 129 2.9 19.4 151 3.5 17.1 Asia & Pacific 172 4.5 17.0 183 4.2 6.4 208 4.8 13.7 Others 2 0.1 0.0 2 0.0 0.0 2 0.0 0.0 Source: CAPMAS
- 98 -
The Middle East markets continued to occupy second position in terms of the relative weight of the number of tourist arrivals. As such, tourists from this group rose by some 24 thousand or 2.4%, mostly from Palestine, Saudi Arabia, Libya, Iraq and Kuwait. However, there was a fall in the number of tourist arrivals from Israel and Bahrain.
The markets of Asia and the Pacific occupied third position. Tourists from this group stepped up by some 25 thousand or 13.7%, mainly from India (8 thousand), South Korea (6 thousand), and Australia (3 thousand).
As for the markets of the Americas group, they ranked fourth, up by 22 thousand or 17.1%. The major tourism export market of this group is the USA, contributing 14 thousand tourists, followed by Canada and Brazil with shares of 2 thousand each.
In addition, tourist arrivals from the African group went up by some 7 thousand or 5.3%, particularly from the Sudan (4 thousand).
Nights (Thousands) Tourists,Nights and Revenues Tourists Revenues of (US$ million) (Thousands) 12500 1500 11500 10500 1300 9500 1100 8500 7500 900 6500 5500 700 4500 500 3500 July /Sept.2004/2005 July/Dec.2004/2005 July/Dec.2005/2006 2500 July /Sept.2005/2006 300 1500 500 100 . . v. h il ly . ne o b r ec. May July ept Oct. p May Ju ug. ept Oct. 2004 Ju Aug. S N Dec. Fe A June A S Nov. D ril Marc p an. 2005 J A
Revenues Nights Tourists ( US$ million ) ( Thousands ) ( Thousands )
- 99 -
6/2: Tourist Nights
Total number of tourist nights spent by all departure groups during July/Dec., 2005/2006 reached some 46.3 million, down by 558 thousand or 1.2% as compared with the corresponding period of the previous FY. Such a decline was ascribed to the 2.9% fall in the number of tourist nights by departures during the first quarter (July/Sept.) and the 1.5% rise during the second quarter (Oct. /Dec.). In the meantime, the average stay per tourist remained at the same level of the previous corresponding period (11.3 nights).
Number of Tourist Nights (In thousand) July/Sept. 2003/2004 2004/2005 2005/2006 Number Relative Change Number Relative Change Number Relative Change weight +(-)% weight +(-)% weight +(-)% Total 38157 100.0 111.5 46823 100.0 22.7 46265 100.0 (1.2) By Period July/Sept. 21769 57.1 119.8 28146 60.1 29.3 27316 59.0 (2.9) Oct./Dec. 16388 42.9 101.5 18677 39.9 14.0 18949 41.0 1.5 By Group Europe 21877 57.3 85.1 28225 60.3 29.0 26730 57.8 (5.3) Middle East 11998 31.5 172.2 13412 28.6 11.8 13783 29.8 2.8 Africa 1297 3.4 136.7 1647 3.5 27.0 1817 3.9 10.3 Americas 1615 4.2 169.6 1933 4.1 19.7 2149 4.6 11.2 Asia & Pacific 1343 3.5 104.7 1573 3.4 17.1 1753 3.8 11.4 Others 27 0.1 237.5 33 0.1 22.2 33 0.1 0.0 Source: Ibid
The number of tourist nights during the period took the same trends of the number of tourists from all tourist markets. As such, the European countries remained at the top, with 57.8% of the total. Moreover, the decline in the number of tourist nights by departures was confined to most markets of Western Europe, with a retreat of some 1.7 million or 7.9%, mostly in the nights spent by tourists from Italy (1.5 million), Germany (662 thousand) and France (228 thousand). However, tourist nights by departures of the UK rose by some 1.4 million.
- 100 -
The markets of Eastern Europe achieved a rise of some 192 thousand or 2.8% in terms of tourist nights by departures. The increase was confined to the nights spent by tourists from the Commonwealth of Independent States (682 thousand). By contrast, there was a fall in the tourist nights from the other countries of this group.
As for the Middle East group, the number of tourist nights by departures went up by around 371 thousand or 2.8%, mostly from Iraq (248 thousand), Saudi Arabia (193 thousand) and Palestine (129 thousand). However, there was a fall in those from Israel (490 thousand) and Bahrain (10 thousand).
Asia and the Pacific group recorded a rise of 180 thousand nights or 11.4%. The increase was mostly in the nights spent by tourists from India (56 thousand), Australia (34 thousand) and South Korea (24 thousand).
Moreover, the number of tourist nights by departures from the Americas group augmented by 216 thousand or 11.2%, principally from the USA (131 thousand), Canada (47 thousand) and Brazil (12 thousand).
Likewise, the group of African markets showed an increase in the number of tourist nights by some 170 thousand or 10.3%, mainly from the Sudan (133 thousand).
International Developments - 101 -
7- International Economic and Monetary Developments 7/1: Economic Developments
7/1/1: Economic Growth, Employment and Prices
The global economy exhibited a tangible improvement in October/December 2005. It recorded a growth rate of 3.2% during the said period against 2.7% during the same quarter of 2004 and 3.3% for 2005 as a whole. This step-up was underpinned by the 2.3% increase in the average growth rate of the G7 economies as a whole during Oct. /Dec. 2005, (against 1.7% in the same period a year earlier) notwithstanding the markedly slackened economic growth of the United States during the statement period. The strong world economic performance was also helped by the rise in the economic growth of Japan; the continued robust growth of the Chinese economy (11.5%); the noticeable pickup in the Indian economy (9.8%); and the improvement in the economic growth of a number of other Asian economies, particularly South Korea, the Philippines, Singapore and Taiwan.
The decline in energy prices and the associated rise in the consumer confidence index (CCI) in many countries had favorably contributed to the strength of the world economy. Another contributing factor was the increase in companies’ inventory; supported by the remarkable rise in the growth rate of world industrial output from 1.7% in the period of comparison to 6.6% during the period under review, along with higher corporate profits.
During the reporting period, there was also a noticeable increase in equity prices on many major stock exchanges of the world.
Reviewing economic growth rate in major industrial countries during Oct./Dec. 2005 (compared with the same period of 2004) showed that it slowed down in the USA, but picked up in Canada, the euro area as a whole and Japan. In the UK, it remained unchanged at its previous level of the period of comparison. The drop in the growth rate of the USA economy, from 3.3% during Oct. /Dec. - 102 -
2004 to 1.6% in the same period of 2005, was a main result of the decline in private consumption (representing about two thirds of GDP) from 4.3% during the period of comparison to only 1.2% during the period under review. In addition, the USA investment spending on fixed assets decreased from 7.2% to only 4.4%, because of weak software and hardware spending, as well as low government spending. Furthermore, the US economy was negatively affected by the continued rise in the current account deficit (US$ 224.9 billion during the period under review, against US$ 185.4 billion in the period of comparison) thus reaching US$ 804.9 billion or 6.4% of GDP during 2005.
On the other hand, economic growth in Canada rose from 2.1% during Oct./Dec. 2004 to 2.5% in the same period of 2005. This was chiefly ascribed to the pickup in the investment in fixed assets, underpinned by new investments in the oil sector in the light of the higher oil prices; the increasing spending on the purchase of equipment and machinery; and the sharp rise in corporate profits. The increase in exports by about 11.8% during Oct. /Dec. 2005 (calculated on an annual basis) was also behind the higher Canadian economic growth.
In the euro area, the economic growth rate was slightly better (1.0% during Oct. /Dec. 2005, against 0.8% in the same period of 2004), though it remained below its level of July/Sept. 2005 (2.7%). This improvement was driven by the noticeable recovery in the Italian economy, the third major economy in the area and the pickup in the growth rates of Spain and Finland. Meanwhile, economic growth of Germany stalled during the period under review. The improvement in the economic performance of the euro area was mainly attributed to the rise in the investment spending on fixed assets, the buoyant exports, and the associating increase in industrial production.
- 103 -
Economic Growth Rates (%) Oct./Dec. 2004 2005 USA 3.3 1.6 Canada 2.1 2.5 Japan (0.7) 5.4 Germany (0.4) 0.0 France 2.7 0.8 Italy (1.5) 1.5 UK 2.3 2.3 Euro area 0.8 1.0 Source: Global Economic & Policy Research, World Financial Markets, JP Morgan Dec. 2005
In Japan, the economy grew by 5.4% during the period under review, against a negative 0.7% during the period of comparison. This remarkable improvement was mainly due to the increase in private consumption. A particular pushup was also made by a strong industrial production because of larger fixed investment spending during the period ending 2005, backed up by the tangible increase in corporate earnings. The Japanese economy was also helped by the expansionary monetary policy of the Bank of Japan.
In the UK, economic growth remained on the rise since the beginning of 2005, reaching 2.3% during Oct. /Dec. 2005 (the same level of the period Oct. /Dec. 2004). This rise was a main result of the constant increase in private consumption and the rise in exports - mainly of services - at a higher pace than imports.
Concerning unemployment in December 2005, compared with the same month a year earlier, declines were recorded: in the USA from 5.4% to 4.9%; in the euro area from 8.8% to 8.4%, influenced by lower rates in France and Italy; in Japan from 4.5% to 4.4%; and in Canada from 7% to 6.5%. In the meantime, unemployment went up in the UK from 4.7% to 5.1%.
- 104 -
Unemployment and Inflation (%) Unemployment Inflation The year ending at end- Dec. 2004 2005 2004 2005 USA 5.4 4.9 3.3 3.4 Canada 7.0 6.5 2.1 2.2 Japan 4.5 4.4 0.2 (0.1) Germany 10.8 11.2 2.1 2.1 France 10.0 9.5 2.1 1.5 Italy 7.9 7.7 2.0 2.0 UK 4.7 5.1 1.6 2.0 Euro Area 8.8 8.4 2.4 2.2 Source: The Economist, various issues
As for inflation in major industrial countries, it increased in the USA from 3.3% during the year ending December 2004 to 3.4% in the year ending December 2005; in the UK from 1.6% to 2.0%; and in Canada from 2.1% to 2.2%. By contrast, inflation rates decelerated in the euro area as a whole from 2.4% to 2.2%. In Japan, it switched to negative, in spite of the economic improvement, signifying that Japan has not fully recovered from its deflationary pressures.
7/1/2: Primary Commodity Prices
The price index of primary commodities (2000 = 100) went down by 3.6% during October/December 2005, ascribable to the 7.3% drop in the price index of energy. On the other hand, rises were recorded in the price indices of metals (14.6%); agricultural raw materials (4.3%); beverages (1.7%); and foodstuffs (0.2%).
The decline in energy prices was a main result of the approval of member countries of the International Energy Agency (IEA) to increase the supply of crude oil and fuel to compensate for the shortage in the US oil production in the aftermath of the hurricane Katrina which hit the Gulf of Mexico.
- 105 -
Metal prices rose, mainly due to the price increases in zinc (30.2%), lead (20.1%) and copper (18.9%). The increase in the prices of copper was chiefly attributed to strong demand by China. Moreover, the prices of gold rose by 11.9%, under the growing demand by dealers and some central banks, particularly given the high inflation rates in some areas of the world, and the weak gold production. On the other hand, tin prices fell by 0.2%.
The rise in the prices of agricultural raw materials was mostly pronounced in rubber (11.0%) and cotton (2.8%), while the prices of wool went down by 7.4%. Beverage prices scaled up, as a main outcome of the price increases of coffee (11.0%) and cacao (0.5%), while the price of tea fell by 10.0%.
The increase in foodstuff prices was an outcome of the rise in the prices of wheat (2.9%) and soybeans (2.4%), whereas those of rice and meat declined by 3.5% and 3.9%, respectively.
7/2: Monetary Developments
7/2/1: Discount Rates
The USA and Canada continued to adopt tightening monetary policies due to increasing inflationary pressures throughout October/December, 2005. The American Federal Reserve raised its discount rate by 0.25 percentage point twice in November and December 2005, bringing it up to 5.25%. Thus, the discount rate has been increased thirteen times since June 1st, 2004, with the aim of maintaining consistency between the targets of monetary policy and price stability, on the one hand, and realizing a reasonable US economic growth rate, on the other. The Central Bank of Canada followed suit, raising its discount rate twice by 0.25 percentage point, to reach 3.5%. Likewise, the European Central Bank increased its repo rate by 0.25 percentage point in December, bringing it up to 5.25%, with the aim of hedging against the potential aggravation of the inflationary pressures faced by the euro area. Meanwhile, the Bank of England’s repo rate - 106 -
remained unchanged at 4.5%. In addition, the Bank of Japan’s discount rate remained almost at a zero level (0.1%) in the context of the expansionary monetary policy adopted by the Bank to spur the Japanese economy.
Discount Rates (Annually %) 2005 March June Sept. Dec. USA 3.75 4.25 4.75 5.25 Canada 2.75 2.75 3.00 3.50 Japan 0.10 0.10 0.10 0.10 UK* 4.75 4.75 4.50 4.50 Euro area* 2.00 2.00 2.00 2.25 Sources: IFS, Reuters & Financial Times, various issues. * Repo rate of the euro area and the UK.
7/2/2: Exchange Rates
Developments in world exchange rates, during October/December 2005, indicated a rise of the US dollar against most key currencies. As such, the euro depreciated against the US dollar from 0.8304 a dollar at end of September 2005 to 0.8477 at end of December 2005; the pound sterling from 0.5662 to 0.5808; the Japanese yen from 113.15 to 117.97; and the Canadian dollar from 1.1611 to 1.1645. Against this background, SDRs fell against the US dollar from 0.6899 at end of June 2005 to 0.6997 at end of December 2005.
The appreciation of the US dollar against most key currencies was a reflection of the successive raises in the interest rates on the US dollar, in addition to the foreigners’ large purchases of American financial assets, mainly the US administration ten-year bonds due to their high interest rate.
- 107 -
Exchange Rates of Key Currencies against the US Dollar (Units of Currencies per US Dollar)
2005 At End of March June Sept. Dec. Change (%) Oct./Dec. 2005 Canadian dollar 1.2096 1.2256 1.1611 1.1645 0.3 Pound sterling 0.5311 0.5576 0.5662 0.5808 2.6 Japanese yen 107.3500 110.4000 113.1500 117.9700 4.3 Euro 0.7714 0.8270 0.8304 0.8477 2.1 SDRs 0.6619 0.6865 0.6899 0.6997 1.4 Source: IFS, various issues
7/2/3: International Reserves
Total international reserves (excluding gold) amounted to SDR 2966.7 billion at end of December 2005, recording a rise of SDR 113.3 billion or 4.0% during Oct. /Dec., 2005 and exceeding the 2.8% increase in total reserves during the previous quarter of the same year. A large part of this increase was concentrated in the reserves of the developing countries, which surged by SDR 101.5 billion or 5.3%, to reach SDR 2029.1 billion or 68.4% of total international reserves at end of December 2005. Around 48.6% of the increase in developing countries' reserves was contributed by Asian countries, except for Japan. China alone accounted for 85.2% of the increase in the reserves of Asian countries. The increase in the reserves of this region is attributed to the intervention of some Asian central banks in exchange markets -particularly in China-, to hold back the appreciation of their currencies against the US dollar; and in turn help strengthen the competitiveness of their exports, reduce their imports; and hedge against any future financial crises. The reserves of Central and Eastern Europe, CIS and the Middle East also augmented; chiefly because of the escalation in their oil export proceeds. Likewise, the reserves of Latin America, the Caribbean and Africa increased.
- 108 -
At the level of industrial countries, reserves mounted by SDR 11.8 billion or 1.3%, to reach SDR 937.6 billion or 31.6% of total international reserves at end of December 2005. About 82.2% of this increase came from Japan’s reserves (up by SDR 9.7 billion or 1.7%). Thus, Japan continued to come in the lead of industrial countries, with a considerable balance of reserves amounting to SDR 583.7 billion or 62.3% of these countries' reserves, and 19.7% of total reserves at the world level, at end of December 2005. Moreover, the reserves of the UK increased by SDR 1.1 billion or 3.7%, while those of the USA and the euro area (mainly Germany and France) declined. Meanwhile, the reserves of Canada remained unchanged at their previous level. - 109 -
8- International Economic Cooperation 8/1: International and Regional Meetings
A number of international and regional meetings were held during the period of October/December, 2005/2006, the most important of which were the following:
APEC Meeting
Economic Leaders of the member economies of the Asia-Pacific Economic Cooperation (APEC) gathered in Busan, South Korea, on 18-19 November 2005. In their Declaration, the Leaders affirmed the utmost importance of the successful conclusion of the Doha Development Agenda (DDA) negotiations for fostering confidence in the World Trade Organization (WTO) and supporting a strengthened multilateral trading system. The Leaders also discussed the negative effects of bilateral trade agreements on the efforts to conclude the WTO negotiations on trade.. It is worthy noting that the number of bilateral and Regional Trade Agreements (RTAs) concluded by the APEC member economies (21 countries contributing about 60% of the world output) reached more than 50 agreements, representing almost one third of the total bilateral and regional trade agreements concluded on the international level. These agreements are widely inconsistent and many of them are concluded for political rather than economic considerations. With the aim of reducing the negative impacts of bilateral and regional trade agreements, the APEC Ministers of Trade called for enhancing consistency and transparency in such agreements.
COMESA Monetary Cooperation Meetings
The tenth meeting of the COMESA committee of governors of central banks was held in Burundi on 19-20 November 2005. In order to accelerate the implementation of the Monetary Cooperation Programme, the governors decided to form three subcommittees: the Monetary and Exchange Rate Policies Sub- committee; the Sub-committee on Financial Sector Stability; and the Subcommittee on Mobilization of Financial Resources. the governors agreed, in the context of designing the future governance structure of the COMESA Clearing - 110 -
House, on establishing a board of directors, comprising five members to be selected from five geographical clusters in the COMESA region, and appointed on a rotational basis following the alphabetical order of the names of the countries in the clusters. The members of the said board are the heads of departments responsible for the payment systems in member central banks. The Work Programme and annual budgets of the COMESA Clearing House is to be approved by the Board of directors during the transition period of three-years before the Clearing House becomes fully operational and self-funded. Moreover, the board of directors will oversee the implementation of the Regional Payments and Settlement System (REPSS) and guide it through its progress to the operational stage.
OPEC Meetings
In its meeting on 12 December 2005, the OPEC decided to lower the current oil production quota of 30.3 million barrels per day, as of the beginning of April 2006, to stop the decline in oil prices in the international markets.
WTO Meetings
The WTO member countries (149 countries) approved the final ministerial declaration of the meeting held in Hong Kong during 13-18 December 2005. The following is a summary of the main results that the meeting came up with:
- The ministers agreed on the progressive elimination of the export subsidies of agricultural commodities, so that a large part of these subsidies will be phased out by 2010, and that all forms of export subsidies are to be completely eliminated by 2013. - The ministers agreed that all forms of export subsidies for cotton will be eliminated by developed countries by the end of 2006. They also agreed that developed countries will give duty and quota free access for cotton exports from Southern African countries and other least-developed countries (LDCs) from the commencement of the implementation of the agreement on the liberalization of trade in agriculture commodities. - - 111 -
- The ministers decided that developed countries should give duty and quota free access for 97% of the products of 32 of the least-developed countries, affirming the development dimension of the Doha Work Programme. - As for services, the ministers agreed that the WTO member countries should submit their revised offers on the liberalization of services trade in no later than July 2006. - The ministers affirmed their commitment to the completion of the Doha negotiations by the end of 2006.
EU Summit
On their summit meeting in Brussels on December 15-16, 2005, the EU leaders reached an agreement on the 2007-2013 EU-budget representing 1.05% of the EU GNI or 862.4 billion euros (US$ 1.3 trillion). Moreover, the EU leaders agreed that a comprehensive revision of the EU-budget in 2009 will result in cutting the agricultural subsidies provided by the EU to European farmers under the EU joint agricultural policy. The development assistance provided by the EU to the ten new Eastern European member states were estimated at 158 billion euros. The EU decided to allow these countries more flexibility in spending this assistance.
8/2: Activity of the World Bank Group during FY 2004/2005
World Bank Activity
FY 2004/2005 witnessed the ongoing cooperation between the World Bank and its development partners and the doubling of efforts to address the international developmental challenges, particularly in Africa. Also, the World Bank gave high priority to the needs of the world’s poorest countries in an endeavor to reduce poverty and achieve the Millennium Development Goals
- 112 -
MDGs. Moreover, the World Bank gave special attention to intensifying development efforts in middle-income countries; in addition to participating in the debt relief initiatives; encouraging the private sector and micro enterprises; and applying programs on fighting epidemics.
Total lending commitments of the World Bank increased by 23.6% to reach US$ 13.6 billion during FY 2004/2005 to finance 118 projects in 37 countries, against US$ 11 billion for 87 projects in 33 countries in the previous FY. Of these commitments, 36% went to Latin America and the Caribbean; 26% to Europe and Central Asia (ECA); 15% to South Asia; and 13% to East Asia and the Pacific. The share of the Middle East and North Africa reached 9%, and the remainder went to Africa.
A breakdown of the Bank’s loans by sector reveals that public administration and law and justice received the largest share (26%), followed by transportation (15%), and water, sanitation, and flood protection (12%). Meanwhile, small shares were received by the sectors of agriculture, fishing, finance, education, health, industry and trade, energy and mining, and information and communication. According to the breakdown of loans by theme, the largest share (17%) went to the financial and private sector development, followed by environmental and natural resource management (15%), social protection and risk management (13%), and the remainder went to the sectors of urban and rural development, human development, public sector governance, economic management, and the rule of law.
IDA Activity
IDA loans and grants during FY 2004/2005 fell by 3.3% to US$ 8.7 billion, to the finance 160 operations in 66 countries, compared with some US$ 9 billion for 158 operations in 62 countries in the preceding FY. The geographical distribution of such loans and grants demonstrates that Africa continued to receive the bulk of the IDA’s total commitments (45%). South Asia came next with a share of 33%, followed by East Asia and the Pacific (12%). The remainder went to Europe and Central Asia (ECA), Latin America, and the Middle East and North Africa (MENA). - 113 -
According to the sectoral breakdown, the sector of public administration and law and justice came in the forefront, receiving 26% of total loans. The sector of health and other social services came second with 16%, followed by transportation 12%. The remainder went to energy and mining, education, industry and trade, water supply, agriculture, finance, and information and communication.
The breakdown of the IDA’s loans by theme shows that the sector of human development received 19% of total loans, followed by rural development (17%), and the financial and private sector development, and public sector governance (16% for each). The remaining amount went to the sectors of social protection, risk management and social development, environmental and natural resource management, rural development, and trade and integration.
IFC Activity
During FY 2004/2005, the IFC approved investment commitments totaling US$ 6.5 billion for the financing of 236 projects in 67 countries, compared with US$ 5.63 billion for 217 projects in 65 countries in the previous FY, denoting a rise of 15.5%. Of these commitments, investments for IFC’s own account reached US$ 5.4 billion, and the remaining US$ 1.1 billion were in syndicated loans held for others. It is worthy noting that Malta and East Timor joined the IFC membership, raising the number of member countries to 178.
The geographical distribution of the IFC commitments was as follows: Europe and Central Asia received the largest share (37% of the total), followed by Latin America and the Caribbean (27.7%), East Asia and the Pacific (12.5%), South Asia (10%), Sub Saharan Africa (6.8%), and the Middle East and North Africa (4.8%). The remainder went to different regions.
According to the sectoral breakdown of the IFC commitments, the finance and insurance sector obtained the bulk of these commitments (34.5% of the total), followed by the sectors of transportation and industrial products (about 9% for each sector). The remaining went to the sectors of primary metals, pulp and paper, utilities and others.
- 114 -
MIGA Activity
During FY 2004/2005, MIGA issued 62 contracts in guarantee coverage, with a total value of US$ 1.2 billion for the financing of 33 projects, compared with 55 contracts at a total value of US$ 1.1 billion for 35 projects in the preceding FY. Total contracts guaranteed by the Agency reached 773 contracts at a total value of US$ 14.7 billion during the period 1990-2005. It is noteworthy that the Maldives joined the MIGA membership, raising the number of member countries to 156.
Annex
- 115 -
Statistical Section
1- Monetary and Banking Developments
Monetary Aggregates
(1/1/1) CBE Financial Position: Reserve Money and Counterpart Assets (1/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets (1/1/3) Banking Survey: Deposits in Local Currency (1/1/4) Banking Survey: Deposits in Foreign Currencies (1/1/5) Banking Survey: Foreign Assets and Liabilities (1/1/6) Banking Survey: Domestic Credit and Other Items (Net) (1/1/7) Total Saving Vessels (1/1/8) Bank Lending and Discount Balances to Business Sector
Financial Sector
- Structure of the Egyptian Banking System as at 31/12/2005 - Mutual Funds Licensed and Operating up to 31/12/2005
Activity of the Banking System
Central Bank of Egypt
(1/2/1) Note Issued Including Cash in CBE Vault by Denomination (1/2/2) Currency in Circulation Outside CBE by Denomination (1/2/3) Clearing House Activities
- 116 -
Banks
(1/3/1) Aggregate Financial Position (1/3/2) Deposits by Maturity (1/3/3) Non-Government Deposits and Saving Systems in Local Currency by Maturity (1/3/4) Deposits by Sector (1/3/5) Deposits by Economic Activity (1/3/6) Portfolio Investments by Sector (1/3/7) Lending and Discount Balances by Sector (1/3/8) Credit by Sector (1/3/9) Lending and Discount Balances by Economic Activity (1/3/10) Loans and Advances (Excluding Discount Balances) by Maturity and Type of Guarantee
Interest Rate
(1/4) The Discount Rate and Interest Rates on Deposits and Loans in Egyptian Pound (1/5) Domestic Interest Rates on 3- Month Deposits in Major Currencies (1/6) The Interest Rates on Treasury Bills (Weekly Weighted Averages)
Index Number
(1/7) Wholesale Price Index (1999/2000 = 100) (1/8) Consumer Price Index (Urban Population) (1999/2000 = 100)
- 117 -
2- The Stock Exchange
(2/1) Companies Listed on the Stock Exchange (2/2) Transactions on Shares on the Stock Exchange (2/3) Transactions on Bonds & Mutual Funds Documents on the Stock Exchange (2/4) Global Depository Receipts (GDR’s) (2/5) The Outstanding Balance of Treasury Bills (Quarterly) (2/6) The Outstanding Balance of Treasury Bills (Weekly) (2/7) The Outstanding Balance of Treasury Bonds
3- Public Finance & Domestic Public Debt
(3/1) Consolidated Fiscal Operations of General Government (Total Expenditures) (3/2) Consolidated Fiscal Operations of General Government (Total Revenues) (3/3) Summary of the Consolidated Fiscal Operations of General Government (3/4) Domestic Debt of Government & Public Economic Authorities (3/5) National Investment Bank (Resources & Uses)
4- External Transactions
(4/1) Balance of Payments (LE) (4/2) Balance of Payments (US$) (4/3) Exports by Degree of Processing (US$ mn) (4/4) Imports by Degree of Use (US$ mn) (4/5) Regional Distribution of Export and Import Transactions (4/6) LE Average Exchange Rates against Foreign Currencies (4/7) Structure of External Debt (4/8) Distribution of External Debt by Main Currencies
- 118 -
5- Cotton
(5/1) Position of Egyptian Cotton (5/2) Egyptian Cotton Exports
6- Tourism
(6/1) Number of Arrivals and Tourist Nights of Departures (by Group) (6/2) Number of Tourists (Departures) & Average Stay
(1/1/1) CBE Financial Position : Reserve Money & Counterpart Assets ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Reserve Money 80461 89236 107922 118504 134577 177822 163608 Currency in circulation outside CBE 48983 51960 56430 59415 63363 67241 73173 Banks' deposits in local currency 31478 37276 51492 59089 71214 110581 90435
Counterpart Assets 80461 89237 107922 118504 134577 177821 163608 Net foreign assets 9428 12343 6997 9858 8815 37295 54018 Foreign assets 62825 86287 87362 88313 91471 108738 122956 Gold 2568 3808 3808 4437 4437 4500 4500 Foreign securities 13749 15569 16331 17103 19084 16665 21000 -119 Foreign currencies 46508 66910 67223 66773 67950 87573 97456 Foreign liabilities 53397 73944 80365 78455 82656 71443 68938 Net domestic assets 71033 76893 100925 108646 125762 140527 109590 Net claims on Government 78559 70769 89081 99472 108121 122264 102111 Claims ; of which 125458 136723 152863 181313 221237 227367 174142 Government securities 98512 116527 116325 164441 207961 208021 164436 Deposits 46899 65954 63782 81841 113116 105103 72031 Net claims on banks -19108 -34505 -34997 -35544 -34583 -21983 -2057 Claims 8940 9766 9557 9530 10480 11572 22663 Banks' deposits in foreign currencies 28048 44271 44554 45074 45063 33555 24720 Other items (net) 11582 40629 46841 44718 52224 40246 9536 Assets 22616 48758 57920 54355 65936 49071 49997 Liabilities ; of which 11034 8129 11079 9637 13712 8825 40461 Equities 5500 1790 1790 2035 2325 2331 2513 Provisions 294 235 203 308 374 302 370 Source : Central Bank of Egypt . (1/1/2) Banking Survey : Domestic Liquidity and Counterpart Assets ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. First: Domestic Liquidity 342503 384262 410807 434911 468261 493884 522296 a- Money Supply 62137 67212 73373 77606 83449 89685 100712 Currency in circulation outside the banking system 45056 48258 52150 55933 59425 63029 68960 Demand deposits in local currency 17081 18954 21223 21673 24024 26656 31752 -120 b- Quasi-Money 280366 317050 337434 357305 384812 404199 421584 Time & saving deposits in local currency 200816 212010 222570 233610 253468 283020 296756 Demand and time & saving deposits in foreign currencies 79550 105040 114864 123695 131344 121179 124828
Second: Counterpart Assets Net foreign assets 17754 25429 32145 45241 55328 80913 112777 Domestic credit 377763 387446 407406 422040 445338 466771 473948 Other items (net) -53014 -28613 -28744 -32370 -32405 -53800 -64429
Source : Central Bank of Egypt ( 1/1/3 ) Banking Survey : Deposits in Local Currency ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total Deposits in local Currency 217897 230964 243793 255283 277492 309676 328508
First: Demand Deposits 17081 18954 21223 21673 24024 26656 31752
Public business sector * 1602 2937 2319 2857 2483 3027 3315
Private business sector 7346 7989 9417 9235 10320 12228 14897 -121 Household sector 8555 8674 9894 10306 11761 11985 13964 Minus: Purchased cheques & drafts 422 646 407 725 540 584 424
Second: Time and Saving Deposits 200816 212010 222570 233610 253468 283020 296756
Public business sector * 10792 10990 12493 12557 12648 13700 14450 Private business sector 22788 22099 24706 25984 26533 27439 27422 Household sector 167236 178921 185371 195069 214287 241881 254884
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. ( 1/1/4 ) Banking Survey : Deposits in Foreign Currencies ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total Deposits in Foreign Currencies 79550 105040 114864 123695 131344 121179 124828
First: Demand Deposits 8954 12159 14185 16280 18396 18140 19195
Public business sector * 349 475 853 878 975 1249 889
Private business sector 4477 6123 7158 8891 10398 10234 11616 -122 Household sector 4246 5689 6343 6697 7181 6823 6827 Minus: Purchased cheques & drafts 118 128 169 186 158 166 137
Second: Time and Saving Deposits 70596 92881 100679 107415 112948 103039 105633
Public business sector * 1906 2403 2100 2554 2874 2946 3984 Private business sector 15719 19056 19536 20659 24691 21103 23838 Household sector 52971 71422 79043 84202 85383 78990 77811
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. ( 1/1/5 ) Banking Survey : Foreign Assets and Liabilities ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Net Foreign Assets 17754 25429 32145 45241 55328 80913 112777
First: Foreign Assets with 91119 126068 135400 145297 158673 174328 201863 -123
Central Bank of Egypt 62826 86287 87362 88313 91471 108737 122956 Banks 28293 39781 48038 56984 67202 65591 78907
Second: Foreign Liabilities with 73365 100639 103255 100056 103345 93415 89086
Central Bank of Egypt 53398 73944 80365 78455 82656 71443 68938 Banks 19967 26695 22890 21601 20689 21972 20148
Source : Central Bank of Egypt ( 1/1/6 ) Banking Survey : Domestic Credit and Other Items (Net) ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. First: Domestic Credit 377763 387446 407406 422040 445338 466771 473948
Net claims on the Government (A + B - C) 110318 103518 116012 126343 142632 159889 151176 A - Securities 177157 203845 207556 258178 311725 311376 278866 B - Credit facilities 41027 33506 50056 33094 31126 41385 30726 C - Government deposits 107866 133833 141600 164929 200219 192872 158416 -124 Claims on public business sector * 32815 34986 36196 35588 38266 37421 41756 Claims on private business sector 200582 214308 218662 223096 225522 228195 235426 Claims on household sector 34048 34634 36536 37013 38918 41266 45590
Second: Other Items (Net) -53014 -28613 -28744 -32370 -32405 -53800 -64429 Capital accounts of which : -71769 -76905 -82743 -83821 -90069 -94179 -99453 Capital and reserves -29624 -31750 -32211 -33836 -34239 -37699 -39153 Provisions -36403 -40334 -43127 -44891 -47050 -49843 -50360 Net unclassified assets and liabilities 18755 48292 53999 51451 57664 40379 35024
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. (1/1/7) Total Saving Vessels ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec.
Total Saving Vessels 351145 395068 418265 445887 473943 498190 518792
Savings with the Banking System 280366 317050 337434 357305 384811 404199 421584 -125- Time & saving deposits in local currency 200816 212010 222570 233610 253468 283020 296756
Demand and time & saving deposits in foreign currencies 79550 105040 114864 123695 131343 121179 124828
Net Sales of Investment Certificates 51877 55218 56794 60178 59065 58485 59780
Post Office Saving Deposits 18902 22800 24037 28404 30067 35506 37428
Source : Central Bank of Egypt (1/1/8) Bank Lending and Discount Balances to Business Sector Public Business Sector* ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec.
Total 32708 34885 36057 35430 38922 37242 41568
In Local Currency 27789 26834 27932 27690 31158 30165 34632
Agriculture 1 55 48 44 44 16 0
Industry 16496 16854 16728 17263 18499 18318 20327 -126-
Trade 6031 5094 5589 5272 6418 5936 7408
Services 5261 4831 5567 5111 6197 5895 6897
In Foreign Currencies 4919 8051 8125 7740 7764 7077 6936
Agriculture ------
Industry 4342 5614 5803 5603 5760 5260 5210
Trade 336 446 466 532 526 511 524
Services 241 1991 1856 1605 1478 1306 1202
Source : Central Bank of Egypt
* Including all public sector companies subject or not to Law No 203 for 1991. (1/1/8) Bank Lending and Discount Balances to Business Sector Private Business Sector (Contd.) ( LE mn ) 20022003 2004 2005 End of Dec. June Dec. June Dec. June Dec.
Total 184751 199896 203726 205816 206590 205693 205760
In Local Currency 145111 149068 152052 154147 155264 152191 148104
Agriculture 4820 4444 4660 4972 4642 5756 5765
Industry 54150 55775 55509 58434 60925 59099 57596 -127-
Trade 42809 42436 43335 42267 40941 39712 38413
Services 43332 46413 48548 48474 48756 47624 46330
In Foreign Currencies 39640 50828 51674 51669 51326 53502 57656
Agriculture 493 447 407 550 527 619 804
Industry 14835 19764 19889 19850 19683 20388 22467
Trade 8822 11111 11736 12020 11909 11369 11635
Services 15490 19506 19642 19249 19207 21126 22750
Source : Central Bank of Egypt - 128 -
Structure of the Egyptian Banking System as at 31/12/2005*
Central Bank of Egypt
Public Sector Banks 4
Commercial Banks Branches 965
Private & Joint Venture Banks 21
Branches 438
Private & Joint Venture Banks 11
Business & Investment Banks Branches 199
Off-Shore Banks 18
Branches 51
Specialized Banks
Industrial Industrial Development Bank of Egypt 1
Branches 13
Real Estate Egyptian Arab Land Bank** 1
Branches 27
Principal Bank for Development & Agricultural 1 Agricultural Credit
Branches 1202 of which: Agricultural Banks in Governorates 2 Village Banks 1032 2895 Total 57***
* Excluding the branches of Egyptian banks abroad and two banks established under private laws and not registered with CBE : Arab International Bank, and Nasser Social Bank. ** The Credit Foncier Egyptien had been merged in the Arab Land Bank on 21/6/1999 . *** 6 of which are in the process of cancelation. - 129 -
Mutual Funds Licensed and Operating Up Till 31/12/2005
Net Asset Cash Par Type of Inception Size Value at Distributions Fund Managers Fund Name Value Fund Date 31/12/2005 at 31/12/2004 LE mn LE LE Open-end Funds 1- Banque Du Caire Growth Nov-95 200 100 794.53 - Income/ 2- Egyptian American Bank ΙI * Apr-97 300 100 122.65 37.50 Growth Income/ 3- Egyptian Gulf Bank May-97 100 100 315.82 92.00 Hermes Fund Management Growth 4- Egyptian American Bank I Growth Oct-94 300 100 269.61 121.75 5- Bank of Alexandria Growth Nov-94 200 100 366.77 131.50 6- Faisal Islamic Bank of Egypt Income Dec-04 50 100 145.54 16.00 Cairo Fund Management Export Development Bank of Egypt Income Oct-96 100 100 267.81 33.00 1- Arab Misr Insurance Group Growth Aug-95 100 500 716.77 192.00 2- Societe Arabe Int'l de Banque Ι Growth Jun-96 100 500 2138.51 270.00 Prime Investment Fund Income/ Management 3 - Societe Arabe Int'l de Banque ΙΙ Oct-97 200 100 269.97 64.00 Growth 4- Societe Arabe Int'l de Banque ΙΙΙ Income Feb-99 50 100 102.31 60.00 1- Banque Misr Ι Income Feb-95 500 100 106.64 82.30 Concord Fund Management 2- Banque Misr ΙΙ Growth Sep-95 300 67 78.06 37.15 3- Misr International Bank Growth Feb-98 280 100 215.64 31.00 Income/ HC Securities 1- Bank Misr ΙΙΙ ** Dec-97 139 1000 4170.33 350.00 Growth Income/ 2- Misr Iran Development Bank I Aug-98 100 100 411.70 55.00 Growth 3- Misr Iran Development Bank II Income Jul-05 500 1000 1000.00 41.06 Income/ 4- National Bank of Egypt III Aug-05 200 100 117.80 0.00 Growth Egyptian Fund Management Egyptian American Bank III Income Jun-99 150 1000 1104.33 80.26 Group*** Egyptian Anglo Fund Income/ Suez Canal Bank Dec-96 100 500 358.34 20.00 Management Growth 1- National Bank of Egypt Ι Growth Sep-94 200 500 1737.50 - El-Ahly Fund Management 2- National Bank of Egypt ΙΙ Income Oct-95 300 100 91.80 100.00 C I Asset Management Commercial International Bank Income Apr-05 1000 100 108.06 0.00 Close-end Funds Egyptian Investment & Finance Orient Trust Growth Feb-97 50 1000 1232.98 - Co. Prime Investment Fund Arab Land Direct Income Feb-00 70 1000 1029.01 113.75 Management Source : CASE .
* The Misr Exterior Bank fund has been changed to Banque Misr III Fund starting from 16/9/2004 after the merger of Misr Exterior Bank with Banque Misr.
** The American Express Bank fund has been changed to Egyptian American Bank starting from 30/6/2005 after the merger of American Express Bank with Egyptian American Bank.
*** The Fund Manager has been changed to Egyptian Fund Management Group instead of Lazard Asset Management starting from 30/6/2005. (1/2/1) Note Issued Including Cash in CBE Vault by Denomination ( LE mn ) 20022003 2004 2005 End of Dec. June Dec. June Dec. June Dec.
Currency By Denomination 49398 52219 57138 59703 63927 67527 73735
PT 25 142 136 134 118 124 120 138
PT 50 253 235 231 203 231 220 270 -130
LE 1 472 455 531 515 552 517 603
LE 5 1103 1119 1247 1226 1342 1279 1276
LE 10 5971 5728 5723 5490 5380 5074 4740
LE 20 12058 12110 11883 11010 11087 10329 9952
LE 50 17440 19381 21575 22686 23419 24517 26614
LE 100 11959 13055 15814 18455 21792 25471 30142
Source : Central Bank of Egypt (1/2/2) Currency in Circulation Outside CBE by Denomination ( LE mn ) 2002 2003 2004 2005 END OF Dec. June Dec. June Dec. June Dec.
Total 48983 51960 56431 59415 63363 67236 73172
Subsidiary denominations (banknotes & Coins) * 209 213 216 219 223 226 230
PT 25 141 135 132 117 122 118 135
PT 50 248 232 228 201 224 217 261 -131
LE 1 467 448 521 510 540 512 592
LE 5 1081 1098 1210 1201 1314 1251 1225
LE 10 5906 5690 5661 5424 5300 4999 4626
LE 20 11920 12049 11734 10926 10939 10246 9702
LE 50 17179 19270 21037 22490 23158 24348 26454
LE 100 11832 12825 15692 18327 21543 25319 29947
Source : Central Bank of Egypt
* Issued by the Ministry of Finance ( 1/2/3) Central Bank of Egypt : Clearing House Activities
During July / Dec. 2000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2004/2005 2005/2006 Cairo Branch Number of cheques (thousands) 6881 6737 9250 8856 8618 4282 4283 Value of cheques (LEmn) 249613 232323 215703 215091 231942 113360 126083
Alexandria Branch
Number of cheques (thousands) 1182 1037 663 626 593 295 288 -132 Value of cheques (LEmn) 39156 35208 26383 30652 27875 14059 13156
Port - Said Branch Number of cheques (thousands) 165 144 112 109 110 54 50 Value of cheques (LEmn) 3399 3012 2495 2481 2606 1255 1138
All Branches Number of cheques (thousands) 8228 7918 10025 9591 9321 4631 4621 Value of cheques (LEmn) 292168 270543 244581 248224 262423 128674 140377
Source : Central Bank of Egypt (1/3/1) Banks : Aggregate Financial Position ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec June Dec. A- Assets Cash 5110 5557 6145 5412 6151 6594 6183 Securities & investments in TBs; of which* 102784 111337 117022 137431 170469 172177 180826 CBE Notes ------23907 Balances with banks in Egypt 85334 110874 125887 116290 106102 124986 128286 Balances with banks abroad 20513 29798 36597 43290 53639 51204 63999 Loans and discounts 267438 284722 291722 296199 303123 308195 316374 -133 Other assets 37460 35650 37522 34814 43371 41990 54482 Assets =Liabilities 518639 577938 614895 633436 682855 705146 750150 B- Liabilities Capital 13036 18155 19580 20346 21133 22949 24513 Reserves 11088 11805 10841 11454 10779 12419 12127 Provisions 36110 40099 42824 44584 46677 49541 49990 Long-term loans & bonds 13947 14866 14798 15012 16253 14254 18808 Obligations to banks in Egypt 34712 35579 33080 29933 27561 22671 31406 Obligations to banks abroad 11006 16247 11585 10332 10292 12262 9898 Total deposits 357159 403144 435872 461697 494925 519649 540151 Other liabilities 41581 38043 46315 40078 55235 51401 63257 Source : Central Bank of Egypt * Including TB reverse repos which were replaced with the CBE notes as of August 2005. (1/3/2) Banks : Deposits by Maturity ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total Deposits 357159 403144 435872 461697 494925 519649 540151
Demand deposits 31265 37233 42476 46742 48855 51557 58766 Time & saving deposits and saving accounts 303452 342535 368108 389482 420972 445132 459540 Blocked or retained deposits 22442 23376 25288 25473 25098 22960 21845
First: Local Currency Deposits 262356 278179 296548 310870 335117 369067 386896 -134
Demand deposits 20613 22929 25743 27168 28395 31606 37873 Time & saving deposits and saving accounts 227591 242058 256272 269505 293535 324664 336834 Blocked or retained deposits 14152 13192 14533 14197 13187 12797 12189
Second: Foreign Currency Deposits 94803 124965 139324 150827 159808 150582 153255
Demand deposits 10652 14304 16733 19574 20460 19951 20893 Time & saving deposits and saving accounts 75861 100477 111836 119977 127437 120468 122706 Blocked or retained deposits 8290 10184 10755 11276 11911 10163 9656
Source : Central Bank of Egypt (1/3/3) Banks* : Non-Government Deposits & Saving Systems in Local Currency (by Maturity) ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total (1+2) 208193 224419 235913 247385 268303 298306 317020 1-Total Deposits 171192 177721 185197 193933 190917 202582 211072
First: Demand Deposits 19509 20970 23471 25053 26223 28445 33377 A-Free 16426 18669 20339 21259 23609 26012 30993 B- Blocked 3083 2301 3132 3794 2614 2433 2384
Second: Time and Saving Deposits 151683 156751 161726 168880 164694 174137 177695 -135 A- Free During one month 16509 14904 15369 16966 15466 16134 18189 From 1 to 3 months 30080 28998 28313 27494 24752 25577 26190 From 3 to 6 months 11820 12211 14045 11277 12871 11262 11600 From 6 to one year 4943 4098 4994 5091 5944 6660 6377 After one year 2929 2444 2370 2150 1887 1718 1680 B- Blocked 8903 8039 8396 7738 8404 8096 7779 C- Saving Accounts 74882 83572 86356 95780 94276 102817 103883 D- Others 1617 2485 1883 2384 1094 1873 1997
2-Saving Systems 37001 46698 50716 53452 77386 95724 105948 Less than three years 8806 7816 7748 7825 7138 7348 5069 Three years and more 28195 38882 42968 45627 70248 88376 100879 Source : Central Bank of Egypt * Excluding Specialized Banks. (1/3/4) Banks : Deposits by Sector ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total Deposits 357159 403144 435872 461697 494925 519649 540151
Local Currency Deposits 262356 278179 296548 310870 335117 369067 386896
Government sector 43699 46071 51816 54120 56701 57649 56314 Public business sector * 12394 13929 14811 15414 15131 16727 17766 Private business sector 30134 30087 34123 35219 36853 39668 42319 -136 Household sector 175791 187594 195266 205375 226048 253865 268848 Foreign sector ** 338 498 532 742 384 1158 1649
Foreign Currency Deposits 94803 124965 139324 150827 159808 150582 153255
Government sector 14478 18977 23154 26187 27655 27252 27072 Public business sector * 2256 2878 2953 3432 3849 4195 4873 Private business sector 20196 25179 26694 29550 35090 31337 35454 Household sector 57217 77111 85386 90899 92563 85813 84638 Foreign sector** 656 820 1137 759 651 1985 1218
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. ** Including counterpart deposits of US aid. (1/3/5) Banks : Deposits by Economic Activity ( LE mn ) 20022003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total Deposits 357159 403144 435872 461697 494925 519649 540151
Local Currency Deposits 262356 278179 296548 310870 335117 369067 386896
Agriculture 2469 2049 2531 2480 2462 2548 2172 Industry 13757 15054 16522 17325 17323 19239 19651
Trade 10914 9879 11569 10520 11148 11740 12470 -137 Services 19998 22416 25081 28487 29904 31915 37575 Unclassified sectors 215218 228781 240845 252058 274280 303625 315028
Foreign Currency Deposits 94803 124965 139324 150827 159808 150582 153255
Agriculture 504 558 522 467 570 831 689 Industry 9738 12193 13077 14718 16336 15274 17034 Trade 5042 5914 6222 7258 7805 6583 6521 Services 9966 12772 13680 15306 18692 17499 20125 Unclassified sectors 69553 93528 105823 113078 116405 110395 108886
Source : Central Bank of Egypt (1/3/6) Banks : Portfolio Investments by Sector ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total 102784 111337 117022 124099 135354 139062 180826
In Local Currency 81227 86000 89467 92542 104088 107725 149260
Government sector 65440 69853 73299 75106 85838 86761 121924 Public business sector * 647 648 666 629 629 666 538 Private business sector 15140 15499 15501 16806 17621 20298 26798 -138 Household sector ------Foreign sector - - 1 - - - -
In Foreign Currencies 21557 25337 27555 31557 31266 31337 31566
Government sector 13205 17465 17932 18630 17925 16594 16413 Public business sector * ------Private business sector 3525 1703 1901 2885 3657 4711 4668 Household sector ------Foreign sector 4827 6169 7722 10042 9684 10032 10485
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. (1/3/7) Banks : Lending and Discount Balances by Sector ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total 267438 284722 291722 296199 303123 308195 316374
In Local Currency 215650 218696 224863 228159 233809 233141 237447
Government sector 9284 9049 8998 9963 10017 10938 10684 Public business sector * 27793 26835 27931 27690 30457 30164 34632 Private business sector 145171 149118 152102 154162 155276 152193 148108 -139 Household sector 33017 33285 35450 35955 37648 39354 43360 Foreign sector 385 409 382 389 411 492 663
In Foreign Currencies 51788 66026 66859 68040 69314 75054 78927
Government sector 4810 4248 4500 6240 7811 11080 10315 Public business sector * 4922 8051 8126 7740 7651 7078 6936 Private business sector 39639 50827 51675 51669 51326 53502 57657 Household sector 1031 1350 1086 1059 1271 1913 2230 Foreign sector 1386 1550 1472 1333 1256 1481 1789
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. (1/3/8) Banks : Credit by Sector ( LE mn ) 2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total 370222 396059 408744 420298 438477 447257 497200
In Local Currency 296877 304696 314330 320701 337897 340866 386707
Government sector 74724 78902 82297 85070 95855 97699 132608 Public business sector * 28440 27483 28597 28319 31086 30830 35170 Private business sector 160311 164617 167603 170968 172897 172491 174906 -140 Household sector 33017 33285 35450 35955 37648 39354 43360 Foreign sector 385 409 383 389 411 492 663
In Foreign Currencies 73345 91363 94414 99597 100580 106391 110493
Government sector 18015 21713 22432 24870 25736 27674 26728 Public business sector * 4922 8051 8126 7740 7651 7078 6936 Private business sector 43164 52530 53576 54554 54983 58213 62325 Household sector 1031 1350 1086 1059 1271 1913 2230 Foreign sector 6213 7719 9194 11375 10939 11513 12274
Source : Central Bank of Egypt * Including all public sector companies subject or not to Law No 203 for 1991. (1/3/9) Banks : Lending and Discount Balances by Economic Activity ( LE mn ) 20022003 2004 2005 End of Dec. June Dec. June Dec. June Dec. Total 267438 284722 291722 296199 303123 308195 316374
In Local Currency 215650 218696 224863 228159 233809 233141 237447
Agriculture 4859 4521 4740 5015 4744 5822 5818 Industry 72232 74269 74109 77722 82577 81844 82287
Trade 48841 47530 48923 48479 47359 45648 45724 -141 Services 56145 58547 61105 60505 60954 59780 58839 Unclassified sectors 33573 33829 35986 36438 38175 39957 44779
In Foreign Currencies 51788 66026 66859 68040 69314 75054 78927
Agriculture 493 447 407 550 527 619 790 Industry 20453 26782 27331 28569 30464 34957 36555 Trade 9158 11557 12203 12552 12435 11893 12073 Services 19253 24341 24360 23941 23351 24188 25191 Unclassified sectors 2431 2899 2558 2428 2537 3397 4318
Source : Central Bank of Egypt (1/3/10) Banks* : Loans and Advances (Excluding Discount Balances) by Maturity and Type of Guarantee ( LE mn ) 20022003 2004 2005 End of Dec. June Dec. June Dec. June Dec.
Total 235856 252429 257865 262261 268776 272063 280569
Up to One Year Maturity 149676 156122 160505 170105 173856 169811 176188 -142
With in kind guarantees 50434 48893 49232 52834 53066 51793 50703
Without in kind guarantees 99242 107229 111273 117271 120790 118018 125485
More than One Year Maturity 86180 96307 97360 92156 94920 102252 104381
With mortgage guarantee 17270 11332 11325 10303 11435 11332 10585
With other guarantees 68910 84975 86035 81853 83485 90920 93796
Source : Central Bank of Egypt * Excluding Specialized Banks. - 143 -
(1/4 ) The Discount Rate and Interest Rates on Deposits and Loans in Egyptian Pound (% Annually)
Average Interest Rate in Interest Rate on Interest Rate Banks Investment Certificates Discount on Post End of Rate Office Saving on three on one year-or Deposits* Simple Compound months less maturity Interest Interest deposits loans Jan-03 10.00 8.27 13.80 10.50 10.00 10.50 Feb 10.00 8.03 13.78 ,, ,, ,, Mar 10.00 8.12 13.39 ,, ,, ,, Apr 10.00 8.27 13.58 ,, ,, ,, May 10.00 8.36 13.53 ,, ,, ,, June 10.00 8.46 13.45 ,, ,, ,, July 10.00 8.37 13.38 ,, ,, ,, Aug 10.00 8.37 13.42 ,, ,, ,, Sep 10.00 8.27 13.57 ,, ,, ,, Oct 10.00 8.11 13.55 ,, ,, ,, Nov 10.00 8.07 13.58 ,, ,, ,, Dec 10.00 7.92 13.42 ,, ,, ,,
Jan-04 10.00 7.88 13.37 ,, ,, ,, Feb 10.00 7.80 13.42 ,, ,, ,, Mar 10.00 7.68 13.25 ,, ,, ,, Apr 10.00 7.67 13.31 ,, ,, ,, May 10.00 7.68 13.31 ,, ,, ,, June 10.00 7.68 13.27 ,, ,, ,, July 10.00 7.71 13.41 ,, ,, ,, Aug 10.00 7.71 13.47 ,, ,, ,, Sep 10.00 7.70 13.45 ,, ,, ,, Oct 10.00 7.70 13.42 ,, ,, ,, Nov 10.00 7.70 13.33 ,, ,, ,, Dec 10.00 7.68 13.34 ,, ,, ,,
Jan-05 10.00 7.63 13.36 ,, ,, ,, Feb 10.00 7.62 13.44 ,, ,, ,, Mar 10.00 7.60 13.41 ,, ,, ,, Apr 10.00 7.60 13.39 ,, ,, ,, May 10.00 7.60 13.35 ,, ,, ,, June 10.00 7.61 13.35 ,, ,, ,, July 10.00 7.46 13.31 ,, ,, ,, Aug 10.00 7.42 13.28 ,, ,, ,, Sep 10.00 6.60 12.80 ,, ,, ,, Oct 10.00 6.60 12.60 ,, ,, ,, Nov 10.00 6.50 12.60 ,, ,, ,, Dec 10.00 6.50 12.70 ,, ,, ,, Source: Central Bank of Egypt and Egyptian National Postal Authority. * Calculated as additional interest of 0.25% for deposits of one year maturity. - 144 -
(1/5) Domestic Interest Rates on 3 - Month Deposits in Major Currencies ( % Annually ) U.S. Dollar Pound Sterling Euro End of Min Max Min Max Min Max Jan-06 1.06 1.25 2.88 3.63 2.06 2.31 Feb 1.00 1.19 2.56 3.31 1.81 2.06 Mar 1.00 1.19 2.56 3.31 1.75 2.00 Apr 1.00 1.19 2.50 3.25 1.81 2.06 May 1.00 1.19 2.50 3.25 1.81 2.06 June 0.69 0.88 2.50 3.25 1.38 1.63 July 0.81 1.00 2.31 3.06 1.38 1.63 Aug 0.81 1.00 2.44 3.19 1.38 1.63 Sep 0.81 1.00 2.56 3.31 1.38 1.63 Oct 0.88 1.06 2.81 3.56 1.38 1.63 Nov 0.88 1.06 2.88 3.63 1.38 1.63 Dec 0.88 1.06 2.94 3.69 1.38 1.63
Jan-04 0.81 1.00 3.00 3.75 1.31 1.56 Feb 0.81 1.00 3.06 3.81 1.31 1.56 Mar 0.81 1.00 3.19 3.94 1.25 1.50 Apr 0.81 1.00 3.25 4.00 1.31 1.56 May 1.00 1.19 3.50 4.25 1.31 1.56 June 1.25 1.44 3.69 4.44 1.38 1.63 July 1.38 1.56 3.81 4.56 1.38 1.63 Aug 1.44 1.63 3.81 4.56 1.38 1.63 Sep 1.69 1.88 3.81 4.56 1.38 1.63 Oct 1.81 2.00 3.75 4.50 1.38 1.63 Nov 2.06 2.25 3.75 4.50 1.44 1.69 Dec 2.15 2.44 3.75 4.50 1.44 1.69
Jan-05 2.38 2.56 3.75 4.50 1.38 1.63 Feb 2.56 2.75 3.75 4.50 1.38 1.63 Mar 2.75 2.94 3.88 4.63 1.38 1.63 Apr 2.88 3.06 3.81 4.56 1.38 1.63 May 3.00 3.19 3.75 4.50 1.38 1.63 June 3.19 3.38 3.69 4.44 1.38 1.63 July 3.38 3.56 3.50 4.25 1.38 1.63 Aug 3.50 3.69 3.44 4.19 1.38 1.63 Sep 3.69 3.88 3.50 4.25 1.38 1.63 Oct 3.88 4.06 3.50 4.25 1.44 1.69 Nov 4.00 4.19 3.50 4.25 1.69 1.94 Dec 4.13 4.31 3.50 4.25 1.75 2.00 Source: National Bank of Egypt (1/6) The Interest Rates on Treasury bills ( Weekly weighted averages) (%) 91 days 182 days 364 days October 2005
First week (6/10) 9.353 9.413 0.0 Second week (13/10) 9.316 9.370 9.380 Third week (20/10) 0.0 9.329 9.394 Fourth week (27/10) 0.0 0.0 0.0 The monthly average 9.335 9.371 9.387
November 2005 - 145
First week (3/11) 9.234 9.269 9.298 Second week (10/11) 0.0 9.198 9.278 Third week (17/11) 0.0 0.0 0.0 Fourth week (24/11) 0.0 0.0 9.195 (30/11) 9.104 9.100 0.0 The monthly average 9.169 9.189 9.257
December 2005
First week (1/12) 0.0 0.0 0.0 Second week (8/12) 8.809 8.778 8.989 Third week (15/12) 0.0 8.681 8.716 Fourth week (22/12) 8.572 8.567 8.765 The monthly average 8.691 8.675 8.823 Source: Central Bank of Egypt. (1/7) Wholesale Price Index (1999/2000=100)*
Change Rate % Groups Relative 2004 2005 The Year Ending July/Dec. Weights Dec. June Dec. Dec. 2005 2005/2006 General Index (All Items) 100.0 166.0 167.5 167.7 1.0 0.1 Farm Products 34.4 .. .. 188.8 .. .. Food Stuffs 18.2 .. .. 166.1 .. .. Beverages & Tobacco 2.7 .. .. 169.0 .. .. Yarn &Textiles 3.9 .. .. 169.6 .. ..
Wearing Apparel 1.4 .. .. 124.4 .. .. -146- Leather & Footwear 0.2 .. .. 170.1 .. .. Wood & its Products 1.5 .. .. 166.8 .. .. Paper & Printing 1.7 .. .. 154.3 .. .. Chemicals & its products 7.4 .. .. 123.9 .. .. Fuel & Related Products 10.5 .. .. 125.2 .. .. Rubber & Plastic Products 0.6 .. .. 144.1 .. .. Nonmetallic Mineral Products 3.5 .. .. 131.7 .. .. Metals 5.2 .. .. 243.9 .. .. Metallic Prods.,Machinery&Equipment 5.4 .. .. 147.4 .. .. Transportation Equipment 2.8 .. .. 162.0 .. .. Other Manufacturing Products 0.6 .. .. 193.6 .. .. Source : Central Agency for Public Mobilization and Statistics (Monthly Bulletin of Wholesale Price Index released every two months). * A new series was developed by taking the average of the fiscal year 1999/2000 as a base period. The averages of two years (1999/2000 and 2000/2001 ) for agricultural and industrial production values were taken as weights for this series, in order to avoid big and sudden changes which may occur in the production of some commodities in case of selecting one year. This series has been released as of September 2005. .. Not available. (1/8) Consumer Price Index (Urban Population ) (1999/2000=100)
2004 2005 Change Rate % Relative Dec. June Dec. TheYear July/Dec. End of Weights Ending 2005 Dec.2005 General Index 100.0 133.4 135.0 137.6 3.1 1.9 Food& non- alcoholic beverages 38.9 149.9 150.7 156.0 4.1 3.5 Tobacco 2.8 136.1 136.1 136.1 0.0 0.0 Clothing & Footwear 10.4 125.4 130.8 130.9 4.4 0.1 -147 Housing , water,elect.and fuel 11.7 112.2 112.4 112.4 0.2 0.0
Furniture, household equipment & 4.9 131.7 132.5 132.8 0.8 0.2 maintenance Health 4.6 118.5 120.3 122.8 3.6 2.1
Transport 5.6 125.1 125.5 126.4 1.0 0.7
Communications 2.0 152.3 180.7 178.7 17.3 -1.1 Recreation & Culture 5.9 119.5 119.5 120.2 0.6 0.6 Education 5.7 119.5 119.5 125.0 4.6 4.6 Hotels & Restaurants 2.5 130.1 130.1 130.1 0.0 0.0 Miscellaneous 5.0 121.1 121.1 121.2 0.1 0.1
Source: Central Agency for Public Mobilization and Statistics (Monthly Bulletin for Consumer Price Index). (2/1) Companies Listed on the Stock Exchange
2002 2003 2004 2005 End of Dec. June Dec. June Dec. June Dec. First: Companies listed on official schedules - Number of companies (in unit) 158 152 101 129 129 132 138 - Number of shares (mn) 1783 2689 2929 3661 3822 4236 6701 - Nominal value of capital (LE mn) 14685 35906 39770 43597 45748 49274 53046 - Market value of capital (LE mn) 26108 55706 76135 95103 139893 250136 373964 Second: Companies listed on unofficial schedules - Number of companies (in unit) 993 971 374 528 591 612 585 - Number of shares (mn) 3823 3244 1859 2383 2637 2646 2551 - 148- - Nominal value of capital (LE mn) 77345 63123 39492 46491 54497 57368 51909 - Market value of capital (LE mn) 95931 94508 69491 68789 89278 84407 80427 Third: Companies listed on temporary schedule* - Number of companies (in unit) 503 146 75 26 21 - Number of shares (mn) 1470 208 143 103 64 - Nominal value of capital (LE mn) 18436 6439 2992 1567 1187 - Market value of capital (LE mn) 26296 8974 4725 2516 1887
Fourth : All Companies - Number of companies (in unit) 1151 1123 978 803 795 770 744 - Number of shares (mn) 5606 5933 6258 6252 6602 6985 9316 - Nominal value of capital (LE mn) 92030 99029 97698 96527 103237 108209 106142 - Market value of capital (LE mn) 122039 150214 171922 172865 233896 337059 456278 Source: CASE monthly bulletin * Companies which have not adjusted their statuses according to the new listing rules . (2/2) Transactions on Shares on the Stock Exchange
July/ Dec. During 2004/2005 2005/2006 Number of Market Number of Market Amount in Amount in Transactions Value in Transactions Value in Thousands Thousands in unit mn in unit mn
In Egyptian Pound 877273 1074049 20518 2634489 3065170 90433 -149
On the floor 832505 819374 17807 2535664 2580693 86240
Over the counter 44768 254675 2711 98825 484477 4193
In Foreign Currencies (US$) 9742 76453 193 26574 142755 1074
On the floor 9599 9078 29 26420 52368 940
Over the Counter 143 67375 164 154 90387 134
Source: Capital Market Authority. (2/3) Transactions on Bonds and Mutual Funds Documents on the Stock Exchange
During July/ Dec. 2004/2005 2005/2006 Number of Number of Amount Market Amount Market Transactions Value in Transactions Value in ( in unit )( 000's ) ( in unit ) ( 000's )
In Egyptian Pounds 216 2506630 2506 285 3765340 3393667 -150 On the floor 216 2506630 2506 285 3765340 3393667
Over the counter ------
In Foreign Currencies (US$) 0 0 0 28 17521 50307
On the floor 0 0 - 1 800 81 Over the counter - - - 27 16721 50226
Source: Capital Market Authority. (2/4) Global Depository Receipts (GDRs)
Corporate Stocks GDR's Listed on Global Exchanges Issued on Egyptian Exchange
Price($) at End of Price(LE) at End of Order and Date of Depository Bank Sub Custodian Bank Offering June-05 Dec.-05 June-05 Dec.-05
1st July-96 Bank of New York Commercial International Bank (CIB) 8.13 9.87 47.77 58.68
2nd July-96 Bank of New York CIB 14.50 13.00 82.00 90.13 National Bank of Egypt (NBE)
3rd Oct.-97 Deutsche Bank Citibank 1.90 2.35 31.33 49.32 -151 4th Apr.-98 Bank of New York CIB 4.88 4.70 46.44 36.12 5th Aug.-98 Bank of New York HSBC 12.00 44.00 33.76 128.13 6th Jun.-99 Deutsche Bank Citibank 12.00 15.10 27.51 69.09 7th July -99* Bank of New York CIB 0.44 0.44 - - 8th July-00 Bank of New York CIB 50.29 53.50 587.45 603.06 9th Aug-02 Bank of New York CIB 57.38 75.00 164.57 218.67 10th Nov.-04 Bank of New York CIB - - 108.00 105.00 11th Dec-05** Bank of New York CIB - 16.21 - 19.21 NBE HSBC
Source: CASE monthly Bulletin.
* Last closing price on 6/11/2002 as trading on this company's GDRs was not conducted after this date.
** Trading on this company's GDRs started on 14 December 2005. - 152 -
(2/5) The Outstanding Balance of Treasury Bills (Quarterly)
(LEmn)
End of 91 days 182 days 89 days 364 days Total 1999 March 6701.0 9352.9 - 11145.4 27199.3 June 6494.9 7918.1 - 11145.4 25558.4 Sept. 6338.6 7909.2 - 11145.4 25393.2 Dec. 5949.6 8274.7 11145.4 25369.7 2000 March 5558.2 8675.8 - 11145.4 25379.4 June 5585.3 8675.9 - 11131.9 25393.1 Sept. 5773.3 8637.9 - 14457.4 28868.6 Dec. 5714.9 8666.5 - 14457.4 28838.8 2001 March 6195.9 8271.3 - 14457.4 28924.6 June 5762.5 9113.9 - 14457.4 29333.8 Sept. 7687.7 8564.1 - 14457.4 30709.2 Dec. 11451.6 9502.5 - 14457.4 35411.5 2002 March 10864.0 10240.5 - 14457.4 35561.9 June 11183.2 14366.7 - 14457.4 40007.3 Sept. 14575.7 18411.5 - 14457.4 47444.6 Dec. 15897.1 22908.0 - 14457.4 53262.5 2003 March 15250.8 24259.7 - 14457.4 53967.9 June 16235.7 24625.2 - 14457.4 55318.3 Sept. 14975.2 26776.5 - 14457.4 56209.1 Dec. 6272.9 28066.3 13001.4 14457.4 61798.0 2004 March 15294.0 30476.8 4081.4 14457.4 64309.6 June 18462.7 38852.7 - 26458.2 83773.6 Sept. 11000.0 48196.3 - 48958.2 108154.5 Dec. 8600.0 45466.8 - 66558.2 120625.0 2005 March 0.0 34550.0 - 82358.2 116908.2 June 2750.0 23900.0 - 98257.4 124907.4 Sept. 8900.0 22350.0 - 71725.6 102975.6 Dec. 5500.0 22600.0 - 67815.6 95915.6 Source: Central Bank of Egypt. (2/6) The Outstanding Balance of Treasury Bills (Weekly)
(LE mn)
91 days 182 days 364 days Total
October 2005 The: First week (6/10) 8900.0 22850.0 71025.6 102775.6 Second (13/10) 8900.0 23350.0 67605.6 99855.6 Third (20/10) 7900.0 23600.0 68105.6 99605.6 Fourth (27/10) 7900.0 23600.0 66215.6 97715.6
End of month 7900.0 23600.0 66215.6 97715.6 - 153
November 2005 The: First week (3/11) 8400.0 23700.0 66915.9 99015.9 Second (10/11) 8400.0 23500.0 67815.6 99715.6 Third (17/11) 8400.0 23500.0 67315.6 99215.6 Fourth (24/11) 8400.0 22500.0 68315.6 99215.6 End of month 8400.0 22500.0 67315.6 98215.6
December 2005 The: First week (1/12) 8400.0 22500.0 67315.6 98215.6 Second (8/12) 8400.0 23500.0 68315.6 100215.6 Third (15/12) 8400.0 23500.0 67315.6 99215.6 Fourth (22/12) 7000.0 23600.0 69315.6 99915.6 End of month 5500.0 22600.0 67815.6 95915.6 Source: Central Bank of Egypt.
(2/7) The Outstanding Balance of Treasury Bonds* End of December 2005 Date of Value Interest Maturity & Issue (LE mn) Rate Due Date
Sixth Tranche 15/1/1999 500 10.000% 7 years, 15/01/2006 Seventh Tranche 1/3/99 2000 9.500% 10 years, 01/03/2009 Eighth Tranche 16/4/99 2000 10.000% 10 years, 16/04/2009 NinthTranche 3/5/99 3000 11.000% 7 years, 03/05/2007 TenthTranche 1/1/04 4000 8.000% 3 years, 01/01/2007 Bonds under the Primary Dealers System **
Eleventh Tranche 26/10/04 5000 11.500% 7 years,26/10/2011 - 154 Twelveth Tranche 16/11/04 5000 11.625% 10 years,16/11/2014 Thirteenth Tranche 12/7/05 3000 10.938% 4 years,07/12/2008 Fourteenth Tranche 18/1/05 1000 11.400% 20 years,18/01/2025 Fifteenth Tranche 12/7/05 2000 9.100% 5 years,12/07/2010 Sixteenth Tranche (1 ) 2/8/05 4000 9.250% 4 years,02/08/2009 Seventeenth Tranche 16/8/05 2000 9.350% 5 years,16/08/2010 Eighteenth Tranche (2) 20/9/05 4000 9.100% 7 years,20/09/2012 Nintheenth Tranche 4/10/05 2000 9.063% 3 years,04/10/2008 Tentheenth Tranche 18/10/05 2000 9.100% 5 years,18/10/2010 Tentheenth Tranche 15/11/05 2000 9.300% 10 years,15/11/2015 Source : Central Bank of Egypt.
* Issued by Law No. 4 /1995. ** This system was put into force as of July 2004, in virtue of the Minister of Finance 's Decree No. 480 for 2002 and the provisions governing it, issued by the Minister of Finance's Decree No. 723 for 2002, in accordance with Article (7) of Law No. 92 for 2004.
( 1 ) Increased by LE 2.0 billion, due to their re-opening on 8/11/2005 on the same conditions.
( 2 ) Increased by LE 2.0 billion, due to their re-opening on 13/12/2005 on the same conditions. (3/1) Consolidated Fiscal Operations of General Government * ( The Budget Sector, NIB and SIFs ) (Total Expenditures) ( LE mn ) 2005/2006 Prel. Estimates 6 Months (Actual)
The The The The The The Budget Budget Budget Budget Budget Budget Sector,NIB Sector, Sector,NIB Sector, Sector Sector & SIFs NIB & SIFs NIB Total Expenditures 187817 172627 192122 71842 66635 80817 Compensation of employees 45843 45898 46360 21027 21044 21247 Salaries and wages 34644 34697 35107 18026 18043 18209 Social contributions 5284 5286 5338 2611 2612 2649 Other 5915 5915 5915 390 389 389 Purchases of goods and services 13143 13155 13234 4002 4007 4026 Goods 5511 5514 5526 1375 1375 1377 Serivces 4884 4887 4936 2365 2366 2382 Other 2748 2754 2772 262 266 267 Intersts 42605 38315 38315 9591 9855 9855 Foreign interests 4015 4015 4015 1316 1316 1316 -155 - Domestic interests 38590 34300 34300 8275 8539 8539 To NIB 12314 957 957 1945 -560 -560 To others 26276 33343 33343 6330 9099 9099 Subsidies, grants and social benefits 50546 39546 58427 22223 16724 30681 Subsidies 35361 35361 35361 15188 15187 15187 To G.A.S.C 9749 9749 9749 3675 3675 3675 To petroleum 22078 22078 22078 10104 10104 10104 To others 3534 3534 3534 1409 1408 1408 Grants 1834 1834 1834 1017 1017 1017 Social benefits 12326 1326 20207 6013 520 14477 Contribution to social funds 11000 0 18881 5504 5 13962 Other 1326 1326 1326 509 515 515 Other 1025 1025 1025 5 0 0 Other expenditures 18285 18315 18317 9284 9290 9291 Defense 15486 15486 15486 7632 7632 7632 Other 2799 2829 2831 1652 1658 1659 Purchases of non financial assets (investments) 17395 17398 17469 5715 5715 5717 Fixed assets 14988 14991 15062 5100 5101 5103 Others 2407 2407 2407 615 614 614 Source : The Ministry of Finance . * According to the State Budget new classification, in line with the IMF's GFS 2001. (3/2) Consolidated Fiscal Operations of General Government* ( The Budget Sector , NIB , and SIFs ) (Total Revenues ) ( LE mn ) 2005/2006 Prel. Estimates 6 Months (Actual)
The The The The The The Budget Budget Budget Budget Budget Budget Sector,NIB& Sector, Sector,NIB Sector, Sector Sector SIFs NIB & SIFs NIB Total Revenues 130152 134495 155396 54985 56424 65391 Taxes Revenues 81607 81607 81607 34713 34712 34712 Tax on income, profits 34844 34844 34844 13962 13961 13961 From EGPC 12544 12544 12544 3863 3863 3863 From SCA 7479 7479 7479 3684 3684 3684 From CBE 135 135 135 0 0 0 From Other Units 6267 6267 6267 2579 2578 2578 -156 - Payable by individuals 8419 8419 8419 3836 3836 3836 Taxes on property 1004 1004 1004 495 495 495 Taxes on goods and services 32359 32359 32359 15707 15707 15707 Taxes on international trade 9115 9115 9115 4045 4045 4045 Other taxes 4285 4285 4285 504 504 504 Grants 2861 2861 2861 397 396 396 Current 1680 1680 1680 321 321 321 Capital 1181 1181 1181 76 75 75 Other revenue 45684 50027 70928 19875 21316 30283 Property income 37902 42246 44034 16473 17762 18427 From EGPC 12599 12599 12599 3150 3150 3150 From SCA 10467 10467 10467 5405 5405 5405 From CBE 2137 2137 2137 0 0 0 From Economic Authorities 931 931 931 170 170 170 From Companies 1602 1602 1689 424 424 424 Other( from EGPC) 7540 7540 7540 6900 0 0 Other 2626 6970 8671 424 8613 9278 Sales of goods and Services 5096 5096 5096 2152 2152 2152 Financial investment 978 978 978 256 256 256 Other 1708 1707 20820 994 1146 9448 Source : The Ministry of Finance . * According to the State Budget new classification, in line with the IMF's GFS 2001. (3/3) Summary of The Consolidated Fiscal Operations of General Government* ( The Budget Sector, NIB and SIFs ) ( LE mn ) 2005/2006 Prel. Estimates 6 Months (Actual) The The The The The Budget The Budget Budget Budget Budget Sector,NIB& Sector,NIB& Sector, Budget Sector, Sector SIFs SIFs NIB Sector NIB Total Revenues 130152 134495 155396 54985 56424 65391 Total Expenditures 187817 172627 192122 71842 66635 80817 Cash Deficit 57665 38132 36726 16857 10211 15426 Net Acquisition of Financial Assets 1735 11052 12574 495 1568 6507 Overall Fiscal Balance Finance 59400 49184 49300 17352 11779 21933 Financing Sources 59400 49182 49299 17352 11779 21935 -157 - Domestic Financing 61371 64125 64645 8473 11977 13131 Banking Financing 34321 34721 35241 -12080 -11362 -10208 Central Bank 6960 7460 7460 -23404 -22723 -22723 Other Banks 27361 27261 27781 11324 11361 12515 Non Banking Financing 27050 29404 29404 20553 23339 23339 N.I.B 5755 4847 4847 11 -274 -274 Other 21295 21295 21295 20542 21264 21264 N.I.B Borrowing 0 3262 3262 0 2349 2349 Foreign Borrowing 3000 3000 3000 -1857 -1857 -1857 Arrears 0 0 0 0 -115 -115 Other -1195 -1195 -10322 -117 -2433 1910 Financing Effects for Eliminations 0 -12972 -4248 0 -6199 -1540 Exchange Rate Revaluation 0 0 0 -291 -291 -291 Net Privatization Proceeds 3000 3000 3000 362 362 362 Privatization Proceeds 5000 5000 5000 1087 1087 1087 Treasury Contribution in the Fund 2000 2000 2000 725 725 725 Discrepancy -6776 -6776 -6776 10782 10335 10335 Cash Deficit (Surplus ) as a percentage of G.D.P 9.7% 6.4% 6.2% 2.8% 1.7% 2.6% Overall fiscal balance as a percentage of G.D.P 10.0% 8.3% 8.3% 2.9% 2.0% 3.7% Revenues as a percentage of G.D.P 22.0% 22.7% 26.2% 9.3% 9.5% 11.0% Expenditures as a percentage of G.D.P 31.7% 29.1% 32.4% 12.1% 11.2% 13.6% Source : The Ministry of Finance . * According to the State Budget new classification, in line with the IMF's GFS 2001. (3/4) Domestic Debt of Government & of Economic Authorities (LE mn) June 2005 Dec. 2005 Change +(-) End of Value % Value % 2005/2006 Government Domestic Debt 349169 100.0 357643 100.0 8474 - Bonds & Bills 340898 97.6 327998 91.7 -12900 - Treasury bonds,of which : 200284 57.4 216473 60.5 16189 Local currency bonds with public sector banks 4000 1.1 4000 1.1 - Euro sovereign bonds (US$) offered abroad * 5122 1.5 5281 1.5 159 - Government notes to compensate the actuarial 2000 2000 0.6 -
0.6 - 158- deficit in social insurance funds - Housing bonds 124 0.1 122 0.1 -2
- Treasury bills 124907 35.8 95916 26.8 -28991 - Bonds to cover foreign currency bonds with public sector commercial banks 12070 3.5 11969 3.3 -101 - The equivalent of the retained 5% of corporate profits to purchase government bonds 1513 0.4 1518 0.4 5
- Net Government Balances with the Banking System -135480 -38.8 -114840 -32.1 20640 - Government Borrowing from NIB 143751 41.2 144485 40.4 734
Economic Authorities Debt 47176 100.0 51758 100.0 4582 - Net Balance of Economic Authorities with the Banking System -11089 -23.5 -8441 -16.3 2648 - Borrowing of Economic Authorities from NIB 58265 123.5 60199 116.3 1934
Source: The Ministry of Finance, Central Bank of Egypt & National Investment Bank. * Holdings of financial institutions resident in Egypt ( the banking system and the insurance sector). (3/5) National Investment Bank (Resources & Uses) (LE mn) End of June 2005 Dec. 2005 Change +(-) Value % Value % 2005/2006
Resources: 316476 100.0 319894 100.0 3418 . Social insurance fund for gov. employees 122913 38.8 123263 38.5 350
. Social insurance fund for pub. & priv. business sectors employees 96093 30.4 96093 30.0 0
. Proceeds from the investment certificates 58485 18.5 59780 18.7 1295
. Accumulated interest on investment certificates (Category A) 6852 2.2 6897 2.2 45 - 159
. Proceeds from US dollar development bonds 1418 0.4 1038 0.3 -380
. Post office savings 33902 10.7 35338 11.0 1436
. Net balances of the NIB with the banking system -4917 -1.6 -4199 -1.2 718 . Other * 1730 0.5 1684 0.5 -46
Uses: 316476 100.0 319894 100.0 3418 . Government 143751 45.4 144485 45.2 734
. Economic authorities 58265 18.4 60199 18.8 1934
. Other 114460 36.2 115210 36.0 750
* Including deposits of the private insurance funds, saving certificates, loans & deposits of various authorities. - 160 - (4/1) Balance of Payments
(LEmn) July / Dec.
2004/2005 2005/2006* Change
Value % Value % (-)
Balance of Current Account 11440.0 6495.8 (4944.2)
Balance of Current Account (Excluding Transfers) (3664.2) (9330.5) (5666.3)
Receipts 87301.4 100.0 99717.9 100.0 12416.5
Export proceeds** 39403.9 45.1 49390.4 49.6 9986.5
Transportation, of which 12729.6 14.6 14586.9 14.6 1857.3
Suez Canal dues (9963.2) (11.4) (10152.4) (10.2) 189.2
Travel 21839.9 25.0 22657.4 22.7 817.5
Investment income 2099.5 2.4 4908.2 4.9 2808.7
Government services 422.1 0.5 602.3 0.6 180.2
Other receipts 10806.4 12.4 7572.7 7.6 (3233.7)
Payments 90965.6 100.0 109048.4 100.0 18082.8
Import payments** 71079.4 78.1 83157.6 76.3 12078.2
Transportation 2666.3 2.9 3177.0 2.9 510.7
Travel 3819.3 4.2 4634.4 4.2 815.1
Investment income, of which 3222.6 3.6 4093.5 3.8 870.9
Interest paid (1846.9) (2.0) (1555.4) (1.4) (291.5)
Government expenditures 1758.8 1.9 3622.5 3.3 1863.7
Other payments 8419.2 9.3 10363.4 9.5 1944.2
Transfers 15104.2 100.0 15826.3 100.0 722.1
Private (net) 11246.2 74.5 14075.2 88.9 2829.0
Official (net) 3858.0 25.5 1751.1 11.1 (2106.9) * Preliminary figures ** Including the exports & imports of free zones. - 161 - (4/1) Balance of Payments (Contd.) (LE mn) July / Dec. 2004/2005 2005/2006* Value Value Capital & Financial Account -2211.5 16159.2 Capital Account 0.0 -230.1 Financial Account -2211.5 16389.3 Direct Investment Abroad -74.1 -373.6 Direct Investment in Egypt (Net) 11443.8 19088.7 Portfolio Investments Abroad 1572.9 -1998.7 Portfolio Investments in Egypt ( Net), Of which : 753.5 16251.0 Bonds -24.9 15970.7 Other Investments (Net) -15907.6 -16578.1 Net Borrowing 4880.0 4206.4 Medium and Long - Term Loans -1571.7 -2196.7 Drawings 3105.6 2795.7 Repayments -4677.3 -4992.4 Medium - Term Suppliers' Credit -488.3 1574.1 Drawings 432.3 2913.4 Repayments -920.6 -1339.3 Short - Term Suppliers' Credit (Net) 6940.0 4829.0 Other Assets -20261.8 -19157.6 CBE -127.6 -249.0 Banks -11363.4 -13948.7 Other -8770.8 -4959.9 Other Liabilities -525.8 -1626.9 CBE 42.3 29.9 Banks -568.1 -1656.8 Net Errors & Omissions -4783.2 -7947.5 Overall Balance 4445.3 14707.5 Change in CBE Reserve Assets, Increase (-) -4445.3 -14707.5 Source : CBE * Preliminary figures - 162 - (4/2) Balance of Payments
(US$mn) July / Dec.
2004/2005 2005/2006* Change
Value % Value % (-)
Balance of Current Account 1831.7 1127.8 (703.9)
Balance of Current Account (Excluding Transfers) (592.7) (1616.9) (1024.2)
Receipts 14037.3 100.0 17315.5 100.0 3278.2
Export proceeds** 6335.7 45.1 8575.5 49.5 2239.8
Transportation, of which 2046.7 14.6 2532.7 14.6 486.0
Suez Canal dues (1601.9) (11.4) (1762.5) (10.2) 160.6
Travel 3511.8 25.0 3932.6 22.7 420.8
Investment income 337.5 2.4 852.3 4.9 514.8
Government services 67.9 0.5 104.6 0.6 36.7
Other receipts 1737.7 12.4 1317.8 7.7 (419.9)
Payments 14630.0 100.0 18932.4 100.0 4302.4
Import payments** 11428.9 78.1 14436.5 76.3 3007.6
Transportation 428.6 2.9 551.7 2.9 123.1
Travel 614.2 4.2 804.6 4.2 190.4
Investment income, of which 518.2 3.5 710.1 3.8 191.9
Interest paid (297.0) (2.0) (269.9) (1.4) (27.1)
Government expenditures 286.1 2.0 630.2 3.3 344.1
Other payments 1354.0 9.3 1799.3 9.5 445.3
Transfers 2424.4 100.0 2744.7 100.0 320.3
Private (net) 1808.5 74.6 2443.6 89.0 635.1
Official (net) 615.9 25.4 301.1 11.0 (314.8) * Preliminary figures ** Including the exports & imports of free zones. - 163 - (4/2) Balance of Payments (Contd.)
(US$mn) July / Dec. 2004/2005 2005/2006* Value Value Capital & Financial Account -357.7 2804.3 Capital Account 0.0 -40.0 Financial Account -357.7 2844.3 Direct Investment Abroad -11.9 -64.9 Direct Investment in Egypt (Net) 1839.4 3313.2 Portfolio Investments Abroad 252.8 -347.7 Portfolio Investments in Egypt (Net), Of which : 121.1 2818.1 Bonds -4.0 2768.8 Other Investments (Net) -2559.1 -2874.4 Net Borrowing 784.1 731.4 Medium and Long - Term Loans -252.9 -380.8 Drawings 499.2 485.7 Repayments -752.1 -866.5 Medium - Term Suppliers' Credit -78.5 273.8 Drawings 69.5 506.5 Repayments -148.0 -232.7 Short - Term Suppliers' Credit (Net) 1115.5 838.4 Other Assets -3258.3 -3324.2 CBE -20.5 -43.3 Banks -1826.9 -2420.7 Other -1410.9 -860.2 Other Liabilities -84.9 -281.6 CBE 6.8 5.2 Banks -91.7 -286.8 Net Errors & Omissions -760.0 -1380.2 Overall Balance 714.0 2551.9 Change in CBE Reserve Assets, Increase (-) -714.0 -2551.9 Source: CBE * Preliminary figures (4/3) Exports by Degree of Processing * (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Total **** 6335.7 100.0 8575.5 100.0 2239.8 Fuels , Mineral Oils & Products 2612.7 41.2 4834.0 56.4 2221.3 Crude petroleum 988.8 15.6 1576.6 18.4 587.8 Petroleum products *** 1533.9 24.2 3155.4 36.8 1621.5 Charcoal & types thereof 11.6 0.2 10.6 0.1 (1.0)
Other 78.4 1.2 91.4 1.1 13.0 - 164 Raw Materials 232.5 3.7 288.7 3.4 56.2 Cotton 33.2 0.5 53.0 0.6 19.8 Maize 36.0 0.6 42.8 0.5 6.8 Potatoes 0.2 0.0 0.7 0.0 0.5 Citrus fruits 4.0 0.1 8.9 0.1 4.9 Spices & vanilla 0.2 0.0 0.1 0.0 (0.1) Groundnuts 1.2 0.0 0.5 0.0 (0.7) Medicinal plants 5.8 0.1 1.7 0.1 (4.1) Flax, raw 2.4 0.0 1.5 0.0 (0.9) Edible vegetable roots & tubers 48.2 0.8 42.3 0.5 (5.9) Other 101.3 1.6 137.2 1.6 35.9 Semi-finished Goods 415.9 6.6 512.7 6.0 96.8 Carbon 3.9 0.1 8.3 0.1 4.4 Essentials oils & resins 13.1 0.2 1.8 0.0 (11.3) (4/3) Exports by Degree of Processing *(Contd.) (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Cotton yarn 62.9 1.0 60.2 0.7 (2.7) Aluminium, not mixed 27.0 0.4 80.3 0.9 53.3 Animal and vegetable fats, greases & oils and products 39.5 0.6 5.3 0.1 (34.2) Molasses 5.5 0.1 14.0 0.2 8.5 Organic & inorganic chemicals 89.8 1.4 121.4 1.4 31.6 Cast iron & semi-finished products thereof 118.2 1.9 160.0 1.9 41.8 Leather, tanned 26.5 0.4 24.7 0.3 (1.8) - 165 Plastic & articles thereof 12.0 0.2 22.3 0.2 10.3 Other 17.5 0.3 14.4 0.2 (3.1) Finished Goods 2530.7 39.9 2449.6 28.5 (81.1) Dairy products 8.0 0.1 4.4 0.1 (3.6) Preserved & dried vegetables 2.2 0.0 0.7 0.0 (1.5) Dried onion 2.1 0.0 1.9 0.0 (0.2) Rice 53.1 0.8 54.7 0.6 1.6 Vegetables & fruits products 3.2 0.1 7.4 0.1 4.2 Sugar and its products 14.9 0.2 13.5 0.1 (1.4) Pharmaceuticals 89.2 1.4 59.6 0.7 (29.6) Fertilizers 83.8 1.3 93.5 1.1 9.7 Cement 132.0 2.1 88.8 1.0 (43.2) Essential oils & resins 18.0 0.3 23.8 0.3 5.8 Leather products 5.2 0.1 1.2 0.0 (4.0) (4/3) Exports by Degree of Processing *(Contd.) (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Rubber & articles 5.4 0.1 4.7 0.1 (0.7) Paper, cardboard paper & articles thereof 39.4 0.6 65.8 0.8 26.4 Chinaware products 60.8 1.0 47.3 0.5 (13.5) Cars, tractors & bicycles 99.6 1.6 65.0 0.8 (34.6) Cotton textiles 113.1 1.8 102.7 1.2 (10.4) Carpets & other floor covering 64.3 1.0 70.0 0.8 5.7 Shoes & accessories 6.1 0.1 4.6 0.1 (1.5)
Ready-made clothes 137.1 2.2 146.2 1.7 9.1 166 - - Glass & glassware 108.7 1.7 144.5 1.7 35.8 Copper & articles 9.7 0.1 14.7 0.2 5.0 Aluminium articles 122.6 1.9 63.4 0.7 (59.2) Articles of iron and steel 340.6 5.4 207.2 2.4 (133.4) Wooden furniture 4.5 0.1 3.7 0.0 (0.8) Marble & granite 19.8 0.3 24.5 0.3 4.7 Electric machines & appliances, recorders & T.V sets and 119.8 1.9 131.2 1.5 11.4 their accessories Other 867.5 13.7 1004.6 11.7 137.1 Miscellaneous products (undistributed) 543.9 8.6 490.5 5.7 (53.4) Source: Central Bank of Egypt. * Commodities are classified according to Harmonized System. ** Provisional. *** Include bunker & jet fuel. **** Include exports of free zones. (4/4) Imports by Degree of Use * (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Total *** 11428.9 100.0 14436.5 100.0 3007.6 Fuels, Mineral Oils & Products 1212.2 10.6 1070.1 7.4 (142.1) Petroleum products 1157.6 10.1 1035.4 7.2 (122.2) Charcoal & types thereof 52.6 0.5 28.5 0.2 (24.1) Other 2.0 0.0 6.2 0.0 4.2 Raw Materials 1932.0 16.9 2579.3 17.9 647.3 Crude petroleum 429.9 3.8 1523.4 10.6 1093.5 Wheat 687.9 6.0 391.0 2.7 (296.9) Maize 196.8 1.7 216.3 1.5 19.5 - 167 Sesame 10.3 0.1 2.6 0.0 (7.7) Tobacco 113.1 1.0 87.4 0.6 (25.7) Iron, ore 6.7 0.0 21.6 0.1 14.9 Seeds & oleaginous seeds 91.2 0.8 58.0 0.4 (33.2) Cotton 34.2 0.3 36.5 0.3 2.3 Other 361.9 3.2 242.5 1.7 (119.4) Intermediate Goods 3208.2 28.1 4222.9 29.3 1014.7 Sugar , raw 79.6 0.7 64.4 0.4 (15.2) Animal and vegetable fats, greases & oils and products 308.3 2.7 270.7 1.9 (37.6) Cement 2.2 0.0 42.6 0.3 40.4 Organic & inorganic chemicals 394.8 3.5 388.6 2.7 (6.2) Fertilizers 13.8 0.1 95.2 0.7 81.4 Tanning & dyeing extracts 63.3 0.6 58.4 0.4 (4.9) Plastic & articles thereof 303.3 2.7 315.6 2.2 12.3 Wood & articles thereof 198.7 1.7 238.8 1.7 40.1 (4/4) Imports by Degree of Use* (Contd.) (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Paper, cardboard paper & articles thereof 240.2 2.1 228.1 1.6 (12.1) Synthetic fibers 177.1 1.4 134.5 0.9 (42.6) Chinaware products 57.8 0.5 61.3 0.4 3.5 Iron & steel products 353.0 3.1 827.6 5.7 474.6 Copper & articles 28.6 0.3 40.6 0.3 12.0 Rubber & articles 99.8 0.9 109.0 0.8 9.2 Aluminium & articles 75.5 0.7 48.1 0.3 (27.4) - 168- Other 812.2 7.1 1299.4 9.0 487.2 Investment Goods 2707.6 23.7 3560.1 24.7 852.5 Pumps, fans & parts thereof 116.2 1.0 114.4 0.8 (1.8) Machines and apparatus for ginning and spinning & parts thereof 35.9 0.3 28.8 0.2 (7.1) Computers 60.4 0.5 91.9 0.6 31.5 Motors, generators, transformers & parts thereof 42.2 0.4 78.9 0.5 36.7 Locomotives, carriages and railway and trams equipment & their parts 50.5 0.4 24.2 0.2 (26.3) Tractors 5.2 0.0 10.2 0.1 5.0 Vehicles for transport of passenger 7.8 0.1 21.3 0.2 13.5 Vehicles for transport of goods 2.0 0.0 11.6 0.1 9.6 Cars accessories and spare parts 177.1 1.5 280.3 1.9 103.2 Air conditioners 42.0 0.4 39.1 0.3 (2.9) Lifts and bulldozers & parts thereof 44.6 0.4 47.1 0.3 2.5 Agricultural machines 21.7 0.2 38.6 0.3 16.9 Printing machinery & parts 17.3 0.2 26.8 0.2 9.5 (4/4) Imports by Degree of Use* (Contd.) (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Electric appliances for telephones & telegraph 83.9 0.7 136.1 0.9 52.2 Optical appliances 97.2 0.9 114.5 0.8 17.3 Other 1903.6 16.7 2496.3 17.3 592.7 Consumer Goods 1465.8 12.8 1710.7 11.7 244.9 A - Durable Goods 444.8 3.9 451.9 3.1 7.1 Refrigerators & electric freezers 26.3 0.2 37.8 0.3 11.5 - 169- Televisions & parts thereof 18.2 0.2 23.0 0.1 4.8 Cars 88.7 0.8 167.5 1.2 78.8 Household electric-motor appliances 119.6 1.0 59.3 0.4 (60.3) Other 192.0 1.7 164.3 1.1 (27.7) B - Non-durable Goods 1021.0 8.9 1258.8 8.6 237.8 Meat and entrails 94.1 0.8 106.6 0.7 12.5 Fish and crustaceans 31.4 0.3 37.7 0.3 6.3 Dairy products, eggs, poultry and honey 46.7 0.4 47.9 0.3 1.2 Tea 51.4 0.4 31.7 0.2 (19.7) Wheat flour 0.4 0.0 0.2 0.0 (0.2) Pharmaceuticals 250.0 2.2 308.5 2.1 58.5 Insecticides 4.9 0.1 6.9 0.0 2.0 Remains of foodstuff industries & animal fodder 82.4 0.7 83.3 0.6 0.9 Live stock 4.7 0.0 11.2 0.1 6.5 Ready-made clothes 66.4 0.6 101.8 0.7 35.4 (4/4) Imports by Degree of Use* (Contd.) (US$ mn) July/December Change 2004/2005 2005/2006 ** Value % Value % (-) Cotton textiles 11.7 0.1 17.6 0.1 5.9
Sugar, refined and products 8.8 0.1 14.4 0.1 5.6 - 170- Lentils 21.6 0.2 17.7 0.1 (3.9) Soap, detergents & artificial wax 15.8 0.1 21.7 0.2 5.9 Other 330.7 2.9 451.6 3.1 120.9 Miscellaneous Goods (undistributed) 903.1 7.9 1293.4 9.0 390.3 Source: Central Bank of Egypt. * Commodities are classified according to Harmonized System. ** Provisional. *** Includes imports of free zones. (4/5) Regional Distribution of Exports and Imports Transactions (US$ mn) July/December Proceeds of Exports Payments for Imports* Trade Balance 2004/2005 2005/2006 ** 2004/2005 2005/2006 ** 2004/2005 2005/2006 ** Total *** 6335.7 8575.5 11428.9 14436.5 (5093.2) (5861.0) European Union countries 2305.8 3212.0 3505.5 5481.4 (1199.7) (2269.4) Other European countries 328.0 467.7 935.8 1178.7 (607.8) (711.0) Russian Federation & C.I.S 26.8 26.1 214.2 473.0 (187.4) (446.9) - 171 United States of America 2307.2 2683.7 2620.6 2627.5 (313.4) 56.2 Arab countries 732.9 1018.0 973.6 1114.1 (240.7) (96.1) Asian countries 525.1 849.6 1676.8 2085.4 (1151.7) (1235.8) African countries 71.4 114.9 73.3 66.2 (1.9) 48.7 Australia 8.1 3.1 62.2 93.8 (54.1) (90.7) Other countries & regions 30.4 200.4 1366.9 1316.4 (1336.5) (1116.0)
Source: Central Bank of Egypt * Include in-kind grants ** Provisional *** Includes exports & imports of free zones - 172 -
(4/6) LE Average Exchange Rates against Foreign Currencies
(In piasters per foreign currency unit)
End of Dec. 2005
First : US$ Interbank Rates
Minimum 573.71
Maximum 573.78
Weighted average 573.74
Second : Market Rates
Buy Sell
US Dollar 573.22 575.50
Euro 678.69 681.68
Pound Sterling 986.85 991.07
100 Japanese Yen 486.52 488.58
Swiss Franc 435.38 437.21
Saudi Riyal 152.84 153.47
Kuwaiti Dinar 1962.40 1971.56
UAE Dirham 156.06 156.69
Source : CBE daily exchange rates The interbank Rates started at 23/12/2004 (4 / 7) External Debt* (US$ mn) June 2005 December 2005 ** Change End of Value % Value % Total External Debt 28948.8 100.0 29691.6 100.0 742.8 + Rescheduled bilateral debt 15734.1 54.4 15118.1 50.9 (616.0) ODA 7836.4 27.1 7577.8 25.5 (258.6) Non-ODA 7897.7 27.3 7540.3 25.4 (357.4) Other bilateral debt 4291.3 14.8 4184.8 14.1 (106.5) Paris club countries 3529.9 12.2 3431.0 11.6 (98.9)
Other countries 761.4 2.6 753.8 2.5 (7.6) -
International & regional organizations 5058.2 17.5 5173.8 17.4 115.6 173 Suppliers' & buyers' credits 781.6 2.7 1238.9 4.2 457.3 - Egyptian bonds and notes 613.6 2.1 1828.8 6.2 1215.2 Long-term Deposits 500.0 1.7 400.0 1.3 (100.0) Short- term debt : 1854.8 6.4 1654.1 5.6 (200.7) Deposits 819.3 2.8 690.0 2.3 (129.3) Other facilities 1035.5 3.6 964.1 3.3 (71.4) Private sector (Non guaranteed) 115.2 0.4 93.1 0.3 (22.1)
Source: Loans & External Debt Department- CBE * The difference from World Bank data is in short-term debt. ** Provisional. + According to the agreement signed with Paris club countries on 25/5/1991 (4 / 8) Distribution of External Debt by Main Currencies
(US$ mn) June 2005 December 2005 Change End of Value % Value % Total 28948.8 100.0 29691.6 100.0 742.8 US dollar * 11678.8 40.3 12977.6 43.7 1298.8 Canadian dollar 154.0 0.5 161.0 0.5 7.0 Australian dollar 142.0 0.5 133.0 0.5 (9.0)
Swiss franc 561.0 1.9 537.0 1.8 (24.0) -174 Pound sterling 254.0 0.9 239.0 0.8 (15.0) Japanese yen 3842.0 13.3 3543.0 11.9 (299.0) Danish krone 139.0 0.5 139.0 0.5 0.0 Norwegian krone 28.0 0.1 27.0 0.1 (1.0) Swedish krona 38.0 0.1 35.0 0.1 (3.0) Kuwaiti dinar 1424.0 4.9 1450.0 4.9 26.0 Saudi riyal 38.0 0.1 38.0 0.1 0.0 UAE dirham 48.0 0.2 47.0 0.2 (1.0) Euro 9276.0 32.1 9017.0 30.4 (259.0) SDRs 1326.0 4.6 1348.0 4.5 22.0 Source: Loans & External Debt Department- CBE * Including the deposits of the Arab Bank and US dollar-denominated Sovereign bonds. (5/1) Position of Egyptian Cotton (Thousand Metric Cantars)
Seasons 2003/2004 Change 2004/2005 Change 2005/2006 Change
Final* % Final* % Estimates++ %
Cultivated area (Thousand Feddans) 531 -19.4 731 37.7 650 -11.1 Productivity (Metric Cantar/Feddan) 7.5 7.1 8.0 6.7 6.6 -17.5 - 175- Crop (without scarto) 3963 -13.7 5833 47.2 43.3 -26.2
Extra-long staple 1168 125.0 1551 32.8 957 -38.3
Long & medium-long staple 2795 -31.4 4282 53.2 3346 -21.9
Opening stock 24 -98.1 377 1470.8 123 -67.4 Total Supply 3987 -32.0 6210 55.8 4426 -28.7 Total Distribution 3610 -25.8 6087 68.6 1948 -68.0
For local mills 2473 -14.3 3247 31.3 724** -77.7
Export commitments 1137 -68.8 2840** 149.8 1224** -56.9
Carry over stock 377 -62.1 123 -67.4 2478** 1914.6 Average farm-gate price*** (LE/Cantar) 595 39.0 612 2.9 660 7.8 Source: CBE (Alex. Branch) * The Holding Company for Spinning, Weaving and Clothes ** Shipment up to end-June 2005 for the 2003/2004 season, and up to end-Dec. 2005 for the 2004/2005 season *** The average purchase price of Giza 70 & 86 varieties ++ the Cotton Arbitration & Testing General Organisation (CATGO) (5/2) Egyptian Cotton Exports
Quantity : Thousand Metric Cantars Value : LE Million & Million of US$ Season 2003/2004 Season 2004/2005 Season 2005/2006
Quantity Value Average price Value Average price Quantity Value Average price Value Average price Quantity Value Average price Value Average price LE.mn (LE) US$.mn ($) LE.mn (LE) US$.mn ($) LE.mn (LE) US$.mn ($)
1- Repatriated Proceeds of exports Beginning of season until 31/12 22.0 17.6 800.0 2.9 131.8 105 58.8 560.0 9.5 90.5 58 32.4 558.6 5.6 96.6 Beginning of season until 31/3 394.0 322.2 817.8 52.3 132.7 698 332.2 475.9 56.5 80.9 ...... Beginning of season until 30/6 455.0 373.1 820.0 60.5 133.0 956 455.0 475.9 77.8 81.4 ...... Beginning of season until 30/9 490.0 404.6 825.7 65.6 133.9 1169 564.9 483.2 96.8 82.8 ...... Beginning of season & at its end* 498.0 410.8 824.9 66.6 133.7 1207 584.8 484.5 100.3 83.1 ......
Quantity % Quantity % Quantity % 2- Export commitments** 1137.0 100.0 2840.0 100.0 1224.0 100.0 EUC 235.2 20.7 362.0 12.7 128.4 10.5 Germany 41.1 3.6 52.4 1.8 21.7 1.8 -176 Italy 127.9 11.2 222.9 7.8 64.8 5.3 Spain 2.0 0.2 7.2 0.3 4.5 0.4 England 0.0 0.0 0.0 0.0 35.3 2.9 Portugal 37.5 3.3 47.3 1.7 1.2 0.1 greece 9.0 0.8 6.9 0.2 0.5 0.0 Slovenia 17.7 1.6 18.0 0.6 0.4 0.0 Others 0.0 0.0 7.3 0.3 0.0 0.0 Other European Countries 126.4 11.1 198.8 7.0 224.9 18.4 Switzerland 32.1 2.8 36.8 1.3 192.0 15.7 Turkey 94.3 8.3 162.0 5.7 32.9 2.7 Asian Countries 644.0 56.7 2095.1 73.8 651.2 53.2 India 167.8 14.8 865.9 30.5 264.0 21.6 Pakistan 89.0 7.8 573.2 20.2 188.0 15.4 China 69.6 6.1 253.9 9.0 112.6 9.2 South Korea 108.8 9.6 87.2 3.1 22.0 1.8 Japan 84.3 7.4 84.8 3.0 20.9 1.7 Thailand 71.1 6.3 103.0 3.6 17.8 1.5 Indonesia 23.5 2.1 63.5 2.2 8.3 0.7 Others 29.9 2.6 63.6 2.2 17.6 1.4 U.S.A. 105.1 9.2 130.2 4.6 64.5 5.3 Other Countries 26.3 2.3 53.9 1.9 155.0 12.6
Source: C.B.E. Alexandria Branch * The repatriated proceeds collected by the CBE. ** From the beginning and at the end of seasons 2003/2004 and until 30/12/ 2005 of season 2004/2005, 2005/2006 (6/1) Number of Arrivals and Tourist Nights Departures (by Group)
(In Thousand)
July/Dec. 2003/2004 July/Dec. 2004/2005 July/Dec. 2005/2006
Tourists % Tourist % Tourists % Tourist % Tourists % Tourist % Nights Nights Nights Total 3797 38157 4389 46823 4347 46265 European Countries 2384 100.0 21877 100.0 2949 100.0 28225 100.0 2829 100.0 26730 100.0 East Europe 586 24.6 5373 24.6 730 24.8 6916 24.5 795 28.1 7108 26.6 West Europe 1798 75.4 16504 75.4 2219 75.2 21309 75.5 2034 71.9 19622 73.4
France 169 7.1 1679 7.7 215 7.3 2108 7.5 190 6.7 1880 7.0 -177 - Germany 429 18.0 4319 19.7 525 17.8 5789 20.5 480 17.0 5127 19.2 Italy 490 20.6 4190 19.2 510 17.3 4401 15.6 333 11.8 2861 10.7 Spain 82 3.4 819 3.7 96 3.2 855 3.0 76 2.6 744 2.8 Switzerland 60 2.5 527 2.4 73 2.5 764 2.7 64 2.3 600 2.2 United Kingdom 219 9.2 1880 8.6 322 10.9 2877 10.2 467 16.5 4251 15.9 Other 349 14.6 3090 14.1 478 16.2 4515 16.0 424 15.0 4159 15.6 The Middle East Countries 1023 100.0 11998 100.0 995 100.0 13412 100.0 1019 100.0 13783 100.0 Jordan 62 6.0 641 5.3 65 6.5 684 5.1 65 6.4 703 5.1 Kuwait 55 5.4 856 7.1 54 5.5 973 7.3 59 5.8 1011 7.3 Palestine 129 12.6 1440 12.0 82 8.2 1214 9.1 123 12.0 1343 9.8 Saudi Arabia 191 18.7 2982 24.9 193 19.4 4014 29.9 230 22.6 4207 30.5 Syria 45 4.4 405 3.4 44 4.4 422 3.1 47 4.6 458 3.3 Other 541 52.9 5674 47.3 557 56.0 6105 45.5 495 48.6 6061 44.0
Source : Central Agency for Public Mobilization and Statistics ( CAPMAS ). (6/1) Number of Arrivals and Tourist Nights Departures (by Group)(Contd.)
(In Thousand)
July/Dec. 2003/2004 July/Dec. 2004/2005 July/Dec. 2005/2006
Tourists % Tourist % Tourists % Tourist % Tourists % Tourist % Nights Nights Nights African Countries 108 100.0 1297 100.0 131 100.0 1647 100.0 138 100.0 1817 100.0 South Africa 10 9.3 54 4.1 11 8.4 66 4.0 12 8.7 76 4.2 Morocco 11 10.2 128 9.9 12 9.2 144 8.7 13 9.4 144 7.9 Sudan 40 37.0 717 55.3 52 39.7 982 59.6 56 40.6 1115 61.4 Tunisia 15 13.9 117 9.0 15 11.4 128 7.8 15 10.9 133 7.3 - 178 Other 32 29.6 281 21.7 41 31.3 327 19.9 42 30.4 349 19.2 Americas 108 100.0 1615 100.0 129 100.0 1933 100.0 151 100.0 2149 100.0 Canada 21 19.4 296 18.3 24 18.6 354 18.3 26 17.2 401 18.6 United States 70 64.8 1184 73.3 84 65.1 1397 72.3 98 64.9 1528 71.1 Latin America 17 15.8 135 8.4 21 16.3 182 9.4 27 17.9 220 10.3 Asia & Pacific 172 100.0 1343 100.0 183 100.0 1573 100.0 208 100.0 1753 100.0 Australia 20 11.6 230 17.1 26 14.2 300 19.1 29 13.9 334 19.1 Japan 40 23.3 256 19.1 33 18.0 214 13.6 35 16.8 229 13.0 South Korea 15 8.7 79 5.9 16 8.8 79 5.0 22 10.6 103 5.9 China 14 8.2 97 7.2 16 8.7 113 7.2 18 8.7 133 7.6 India 20 11.6 158 11.8 21 11.5 158 10.0 29 13.9 214 12.2 Other 63 36.6 523 38.9 71 38.8 709 45.1 75 36.1 740 42.2 Other Countries 2 -27-2-33-2 -33- Source : Central Agency for Public Mobilization and Statistics ( CAPMAS ). (6/2) Number of Tourists (Departures) & Average Stay ( In Thousand) July /December 2003/2004 2004/2005 2005/2006
Number Average Number Average Number Average Stay Stay Stay
Total 3483 11 4130 11.3 4082 11.3
By Period - 179 July/September 1798 12.1 2267 12.4 2167 12.6 October/December 1685 9.7 1863 10.0 1915 9.9 By Group Europe 2374 9.6 2950 8.6 2735 10.0
Middle East 779 14.3 788 15.5 909 14.4
Africa 86 15.0 114 14.4 113 16.1 Americas 104 15.5 122 15.8 144 15.0 Asia and the Pacific 138 9.7 153 10.3 179 9.8 Others 2 13.8 3 12.4 2 14.9
Source: Central Agency for Public Mobilization and Statistics (CAPMAS) .
Periodical Publications of the Central Bank of Egypt
Name of Publication Language Periodicity
1 -Monthly Statistical Bulletin Arabic and English Monthly
2 -Economic Review Arabic and English Quarterly
3 -Annual Report Arabic and English Every fiscal year
4 -External Position of the English Quarterly Egyptian Economy
Notes:
- All publications of the Central Bank of Egypt are available on the CBE's website : www.cbe.org.eg
- To obtain a hard copy of any publication by mail, please write to the following address: Research, Development and Publishing Sector, the Central Bank of Egypt, 31 Kasr El Nil Street. Cairo, Egypt.