Mohamed Khalid - Ahram

The state-owned National Bank of Egypt (NBE) and Banque Misr announced on Tuesday a bundle of new services and privileges for Egyptians working aboard. The new services include loans, mortgage finance, and privileges regarding the newly announced certificates of deposits (CDs).

New loans
 

NBE announced that it will offer new four-year loans of between EGP 50,000 and EGP 3 million for Egyptians abroad against their salaries, on the condition that they transfer instalments in foreign currency. Loan applicants must be between 21-60 years of age.

Instalments of the new loans are to be paid in foreign currency based on the exchange rate at the date of payment at an interest rate 2.25 percent lower than the borrowing rate set by the Central Bank of Egypt (CBE) at the date of receiving the loan.

Egyptian expatriates can apply for the new loans at any NBE bank branch starting on Wednesday, 26 July, or through other channels soon to be announced by the NBE. The new loans will be provided without administrative expenses, and include free life insurance, the details of which have not yet been disclosed by the NBE.

Banque Misr has announced a similar offer of four-year loans of up to EGP 3 million for Egyptian expatriates. The Banque Misr loans will include free insurance covering death or total disability.

NBE will also enable holders of Al Ahly Plus CDs to secure a loan for investment purposes of up to 50 percent of the total CD value, with a cap of EGP 10 million, backed by the CD itself. 

The interest rate for this loan is set at 2.25 percent below the CBE interest rate.

Pensions for Egyptians abroad
 

The NBE will soon announce a pension program for Egyptians working abroad in collaboration with Misr Life Insurance. The announcement will take place during a press conference next week at the Financial Regulatory Authority (FRA).

CD options for expats
 

NBE announced payment options catering to Egyptians abroad concerning the newly announced US-denominated certificates of deposits.

Overseas Egyptians without a foreign currency bank account can buy the new Al Ahly Plus and Al Ahly Fawran CDs through bank transfers. NBE will then open foreign currency subaccounts for them.

Mortgage finance program
 

Banque Misr has also launched a mortgage finance program for Egyptian expatriates covering up to 80 percent of unit prices. The new program offers payment periods of up to 15 years.

All relevant details are available on the bank's website.

• What are the new USD denominated CDs?

The new CDs are Al Ahly Plus and Al Ahly Fawran from the National Bank of Egypt (NBE), and Al Qimma and Elite from Banque Misr.

• What are the minimum purchase amounts for the new certificates?

$1,000 and its increments.

• What are the yields of the new CDs and how they will be disbursed?

Al-Ahly Plus (NBE) and Elite (Banque Misr): Seven percent yield to be disbursed every three months in USD.

Al-Ahly Fawran (NBE) and Al Qimma (Banque Misr): Nine percent annual yield to be disbursed in advance in EGP (equal to 27 percent of each certificate's total value).

• What do the new CDs provide for Egyptian expats?

NBE's new certificates offer multiple facilities for Egyptians working abroad, including loans, CD purchasing facilities, and pensions.

Egyptians abroad who do not have a foreign currency bank account can buy Al Ahly Plus and Al Ahly Fawran CDs through bank transfers. NBE will then open foreign currency subaccounts for them.

• When will the new certificates be available?

As of Wednesday, 26 July 2023.

• How can Egyptians buy the new certificates in Egypt?

Clients in Egypt can buy the certificates through the websites of NBE and Banque Misr, mobile applications, online branches in and outside Egypt, and ATMs. CDs will be available on online banking services including BM Online, Al Ahly Net, and Al Ahly Mobile.

NBE specified that clients in Egypt can only buy the new CDs online if they have bank cards issued from abroad.

• What do I do if I want to buy a certificate but I am not a client of either bank?

Non-clients can buy the NBE's CDs through transfers to bank accounts that will be announced on the bank's website.

Banque Misr has not announced procedures for non-clients.

• Will I redeem the certificates at the time of their maturity in USD or EGP?

All the certificates will be paid in USD at the date of their maturity.

• Can I apply for loans against the certificates?

Only holders of Al Ahly Plus and Elite certificates can apply for loans. They can apply for loans up to 50 percent of the value of their certificates for investment purposes at a maximum value of EGP 10 million ($323,124) and at an interest rate of 2.25 below the main interest rate of the Central Bank of Egypt.