Balance sheet of Egyptian banks strong: Central Bank

The Egyptian banking system is void of troubles and that the status of capital is quite strong, said the country's central bank governor Hisham Ramez.
Stating that the balance sheets of Egyptian banks are "realistic and solvent", he said this was in contrary to the problems being faced by European banks like in Spain, Greece and Cyprus.
Ramez described the economic condition of Egypt as "quite solid" despite the present hardships.
He noted that gross capital of Egyptian banks amounts to more than 100 billion Egyptian pound (USD 100 billion).
Ramez further said: "Egyptian banks reported record profits in 2012, although most of them took excessive provisions."

"However, there is no doubt that the issue of decreasing foreign currency reserves is alarming," he said adding that the foreign reserves currently stood at USD 13.4 billion.

Ramez added that the IMF loan sought by the government is "very important, but it is not enough," noting that "the economy must be set into motion, through an economic plan, to pare the budget deficit...We must not depend on borrowing."
He noted that "Egyptian economy can move forward, even without this loan, through boosting investment and tourism."
Reports said he also referred to the surge of the US dollar against local currency.

"A similar surge was recorded in the year of 2004, but the pound's exchange rate was brought back to normal two or three years later thanks to the economic reform programme applied then and the consequent flow of investments," he said.
He ruled out any further decline in the Egyptian pound against the dollar.
Ramez also denied plans to tax local or foreign currency deposits, saying: "This is totally untrue and unlikely. We encourage depositing.