{"id":613100,"date":"2024-01-08T00:00:00","date_gmt":"2024-01-08T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/08\/cbe-instructs-all-local-banks-to-charge-a-minimum-24-interest-rate-on-all-secured-loans\/"},"modified":"2024-01-08T00:00:00","modified_gmt":"2024-01-08T00:00:00","slug":"cbe-instructs-all-local-banks-to-charge-a-minimum-24-interest-rate-on-all-secured-loans","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/01\/08\/cbe-instructs-all-local-banks-to-charge-a-minimum-24-interest-rate-on-all-secured-loans\/","title":{"rendered":"CBE instructs all local banks to charge a minimum 24% interest rate on all secured loans"},"content":{"rendered":"

Good afternoon, friends.<\/strong> It\u2019s an eerily calm news day here at home so far, although we have a feeling it\u2019s one of those days where we\u2019ll see the pace pick up later on in the afternoon. <\/p>\n

THE BIG STORY TODAY<\/strong><\/p>\n

The Central Bank of Egypt (CBE) has instructed all local banks to charge a minimum <\/strong>interest rate of 24% on secured loans<\/strong> in a bid to clamp down on carry trade following the issuance of new high-yield certificates of deposit (CDs) by the country\u2019s two largest banks, Asharq Business<\/a> reports, citing three banking sources. The new rule came into effect today. <\/p>\n

Background:<\/strong> Banque Misr and the National Bank of Egypt last weekend introduced<\/a> two 12-month CDs with record high yields: one with a single interest payment of 27% paid upon maturity, and another that offers monthly payouts at a reduced 23.5% annualized rate.<\/p>\n

THE BIG STORY ABROAD<\/strong><\/p>\n

A Boeing 737 Max 9 from Alaska Airlines lost a fuselage panel after take-off on Friday<\/strong> and continues to dominate coverage in the international press this afternoon. Despite no loss of lives, the incident has renewed calls within the industry to extend the duration of in-flight voice recordings that are often used to retrieve vital flight data. US standards cap recording requirements at two hours, compared to 25 hours in Europe. Authorities were unable to retrieve the recordings from the Alaska Airlines flight because more than two hours had passed and the data was erased. Boeing shares fell nearly 8% in pre-market trading, while Spirit AeroSystems \u2014 which supplies Boeing\u2019s fuselage for the jets \u2014 saw its shares drop 16%. (Reuters<\/a> | Bloomberg<\/a> | Financial Times<\/a>)<\/p>\n

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