Big Two state-owned banks introduce new CDs: Banque Misr and the National Bank of Egypt are issuing two new high-interest certificates of deposit (CDs) following the central bank’s 200-bps rate hike last Thursday, the lenders said in a joint statement (pdf) yesterday. The two banks are offering a fixed, three-year CD at a 19% rate, and a three-year declining-rate certificate that starts at 22% before falling to 18% in the second year and 16% in the third year. Interest is paid monthly on both.

Rumors had been flying of higher-rate CDs: NBE Vice-Chairman Yehia Aboul Fotouh on Thursday denied rumors that the bank would introduce new CDs at a 25-30% rate.

REMEMBER- The two banks issued record high one-year 25% CDs in a bid to encourage de-dollarization in the wake of the devaluation in January and the 300-bps rate hike a few days prior. State-owned Banque du Caire and private lenders CIB and QNB Alahli also offered similar certificates.

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