CAIRO: President Abdel Fattah al-Sisi will issue within hours a law to grant Suez Canal Authority power of issuing banking investment certificates, an inside source requesting anonymity told al-Watan news gate Tuesday.
“The law will merit the authority the right to issue 10, 100 and 1000 EGP investment certificates with a 12 percent interest rate for a five-year term,” he said, adding that a $1000 investment certificate is offered with a three percent interest rate for Egyptians abroad.
“Other than giving the Suez Canal Authority the right to issue investment certificates, the law will address two main aspects,” he said.
The first aspect will stipulate limiting the distribution of the investment certificates to the four national banks “Suez Canal Bank, National Bank of Egypt, Banque Misr and Banque Du Caire,” while the second aspect will address exempting investment certificate revenues of taxes.
“The investment certificates will be issued on Sept.1 through the four national banks,” Hisham Ramez, Governor of the Central Bank of Egypt, told Sada Al Balad TV channel Tuesday.
“A presidential decree will be issued soon to regulate the certificates, the manner of distribution and its values,” he said, unveiling that to encourage investors, the CBE will allow other Egyptian banks to execute investment certificate deals for their clients.
“The CBE seeks through offering such an initiative to facilitate investment for willing citizens along with preventing aggregation at the concerned banks,” he added.
The announcement that the Suez Canal expansion project will be financed by investment certificates instead of offering shares in the stock market has been welcomed by some capital market experts and economists, The Cairo Post reported Aug. 18.
Hany Tawfik, head of the Egyptian Private Equity, said the step is “a sovereign and correct decision as it eventually ensures state possession of the vital water way.”