Beltone to Al Arabiya: Emergency liquidity will improve compliance of Egyptian banks with standard of corporate governance

Abanob Magdy, analyst senior for the banking and financial institution sector at Beltone Financial Holding Company, he described the process of providing emergency liquidity from the Egyptian Central Bank to banks, in order to help them pay their financial obligations if necessary.

Magdy added in an interview with “Al Arabiya” who among the reasons for this step, Precautionary and precautionary indications for the futureWith comfortable liquidity rates that are among the best in the region.

He stressed the importance of these controls in defining governance and harmonizing with standard international banks, explaining that the Egyptian central bank has agreed on a set of rules that will allow it to provide emergency liquidity to local banks.

He added that the central bank will grant liquidity to banks in the case in which they are not in able to provide it from the interbank market or other financial markets.

The bank has stated that liquidity will only be available to solvent banks for a maximum period of 180 days and that the loan or part of it may be extended for other periods.

The Egyptian central bank said the emergency liquidity interest rate will be determined at the central bank’s overnight lending rate plus a margin set by the bank at a minimum of 5%.

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