Yahya Aboul Fotouh, Vice Chairman of the Board of Directors National Bank of Egypt The largest government bank in a statement to the site "Sky News Arabia" The proceeds of savings certificates with a return of 18% amounted to 37 billion pounds in the bank since their launch on Monday morning.
Meanwhile, Mohamed El-Etreby, head of Banque Misr, the second largest government bank, said in a statement to Sky News Arabia that the bank’s proceeds of savings certificates of the same category amounted to 20 billion pounds until the official end of work on Tuesday evening.
On Monday morning, the National Bank and Banque Misr launched saving certificates with a fixed return of 18% for a period of 18% and paid monthly, coinciding with the Central Bank’s decision to raise the interest rate on deposits and lending by 1%.
The highest return for savings certificates before that did not exceed 11%, while Egyptian media reports quoted banking sources as saying that issuing high-return certificates is temporary and will be stopped as soon as the amount of financial liquidity targeted to be collected from it is reached to work on stabilizing the banking sector.
The Central Bank’s decision to raise interest rates led to a significant decline of the Egyptian pound against the dollar, which encouraged investors to invest in the stock market or deposit in banks in the Egyptian currency.
In a related context, the Egyptian Dar Al-Iftaa issued a clarification on Tuesday evening, in which it said that investment certificates are permissible and permissible, and there is no doubt about them.
Dar Al-Iftaa attributed this to the fact that investment certificates are a financing contract, and are not considered – in any case – a loan, and that financing contracts are in fact new contracts.
She emphasized that new contracts – not named in inherited jurisprudence – are permissible as long as they are free from gharar and harm, fulfilling the interests of their parties, noting that the objection to this contract is that it contains gharar, harm or usury; Not true.
Dar Al Iftaa stressed that the profits offered on these certificates are permissible, and that the ultimate goal of issuing these certificates is to support saving awareness and strengthen the Egyptian economy.
She concluded that investment certificates have legal protection that regulates and controls them.
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Yahya Aboul Fotouh, Vice Chairman of the Board of Directors National Bank of Egypt The largest government bank said in a statement to “Sky News Arabia” that the proceeds of saving certificates with a return of 18% amounted to 37 billion pounds in the bank since its launch on Monday morning.
Meanwhile, Mohamed El-Etreby, head of Banque Misr, the second largest government bank, said in a statement to Sky News Arabia that the bank’s proceeds of savings certificates of the same category amounted to 20 billion pounds until the official end of work on Tuesday evening.
On Monday morning, the National Bank and Banque Misr launched saving certificates with a fixed return of 18% for a period of 18% and paid monthly, coinciding with the Central Bank’s decision to raise the interest rate on deposits and lending by 1%.
The highest return for savings certificates before that did not exceed 11%, while Egyptian media reports quoted banking sources as saying that issuing high-return certificates is temporary and will be stopped as soon as the amount of financial liquidity targeted to be collected from it is reached to work on stabilizing the banking sector.
The Central Bank’s decision to raise interest rates led to a significant decline of the Egyptian pound against the dollar, which encouraged investors to invest in the stock market or deposit in banks in the Egyptian currency.
In a related context, the Egyptian Dar Al-Iftaa issued a clarification on Tuesday evening, in which it said that investment certificates are permissible and permissible, and there is no doubt about them.
Dar Al-Iftaa attributed this to the fact that investment certificates are a financing contract, and are not considered – in any case – a loan, and that financing contracts are in fact new contracts.
She emphasized that new contracts – not named in inherited jurisprudence – are permissible as long as they are free from gharar and harm, fulfilling the interests of their parties, noting that the objection to this contract is that it contains gharar, harm or usury; Not true.
Dar Al Iftaa stressed that the profits offered on these certificates are permissible, and that the ultimate goal of issuing these certificates is to support saving awareness and strengthen the Egyptian economy.
She concluded that investment certificates have legal protection that regulates and controls them.