CENTRAL BANK OF EGYPT

ECONOMIC REVIEW

Vol. 53 No. 1

2012/2013

Economic Research Sector

The Economic Review is issued by the Economic Research Sector at the Central Bank of Egypt (CBE) on a quarterly basis. It aims to make available to a broad readership of specialists and non-specialists a wide range of information on the performance of the Egyptian economy during the reporting period. The CBE posts the Review on its website: www.cbe.org.eg.

Contents

Page

Main Indicators

1- Macroeconomic Developments

1/1 - Gross Domestic Product (GDP) ……………………………………………. 1 1/2 - Employment and Unemployment ………………………………………….. 9 1/3 - Inflation …………………………………………………………………..... 10 1/4 - Tourism ………………………………………………………………… 14 2- Monetary and Banking Developments

2/1 - Monetary and Banking Policy and Monetary Aggregates…………………….. 17 2/1/1 - Monetary Policy………………………………………………………………. 17 2/1/2 - Reserve Money (M0)………………………………………………………….. 19 2/1/3 - Domestic Liquidity (M2) and Counterpart Assets ……………………………. 23 2/1/4 - Payment Systems and Information Technology (IT).…………………...…..... 27 2/1/5 - RTGS and SWIFT Local Services ………………………………………........ 29 2/2 - Banking and Credit Developments……….…..…….…………….…………... 30 2/2/1 - Banking Reform ………………………………………..…………………….. 30 2/2/2 - Supervision Sector …………………………..………………………………… 34 2/2/3 - Overview of the Aggregate Financial Position of Banks……………………… 38 2/2/4 - Interbank Transactions ……………………….………………………………. 40 2/2/4/1- Transactions with Banks Abroad …………………..………………………….. 40 2/2/4/2- Interbank Transactions in Egypt ……………………………………………… 41 2/2/5 - Deposits ………………………………………………………………………. 41 2/2/6 - Lending Activity ……………………..……………………………………….. 42 3- Non-Banking Financial Sector 3/1 - Regulatory and Legislative Developments………...…………………………. 45 3/2 - Stock Market………………………………………………………………….. 47 3/3 - Mutual Funds ………. ……………………………………………………...... 50 4- Public Finance and Domestic Public Debt 4/1 - Consolidated Fiscal Operations of the General Government …………………. 51 4/1/1- Estimates of the Consolidated Fiscal Operations of the General Government .. 52 4/1/2- Follow-up of the Execution of Consolidated Fiscal Operations of the General

Government …………………………………………………………………… 54

4/2 - Domestic Public Debt …...……………………………………………………. 59 4/2/1- Debt of the Government (Net) ……………………………………………....... 59 4/2/2- Debt of Public Economic Authorities (Net) …………….................................. 62 4/2/3 - Debt of the NIB (Net) ………………………………………………………… 63 4/2/4- Intra-Debt …………………………………………………………………….. 63 4/2/5- The Domestic Public Debt Service………………………………….………… 63

5 - External Transactions

5/1 - Foreign Exchange Market and NIRs……........................................................ 64 5/2 - Balance of Payments……………………………………………………….... 66 5/2/1 - Current Account …………………………………………………………….. 66 5/2/1/1- Trade Balance ……………………………………………………………….. 66 5/2/1/2- Balance of Services and Income and Net Transfers…………………………. 67 5/2/2 - Capital and Financial Account………………………………………………. 70 5/3 - External Trade……………………………………………………………….. 72 5/3/1 - Structure of Export Proceeds and Import Payments………………………… 73 5/3/2 - Sectoral Distribution of Merchandise Transactions…………………………. 76 5/3/3 - Geographical Distribution of Merchandise Transactions……………………. 78 5/3/4 - Breakdown of Trade by Main Commodity………………………………….. 80 5/4 - International Finance ………………………………………………………... 82 5/4/1 - Foreign Direct Investment (FDI) in Egypt ………………………………….. 84 5/4/2 - External Official Grants …………………………..………………….……... 87 5/4/3 - External Debt………………………………………………………………… 89

Annex Statistical Section………………….…………………………………………………. 95

Main Indicators

July/Sept. * GDP (LE bn)

2011/12 2012/13 GDP at Market Prices 402.1 445.8 Annual Growth Rate (%) 10.4 10.9 GDP at Factor Cost 386.0 395.8 Annual Growth Rate (%) 0.3 2.5

GDP Growth Rate (at Factor Cost) by Sector (%)

A) Productive Sectors of which:

Electricity 5.3 6.8 Construction and Building -2.8 5.4 Water 5.0 4.4 Agriculture, Irrigation and Fishing 3.1 3.0

B) Services Sectors of which:

Communications 3.7 5.1 Real Estate 2.2 4.2 Wholesale and Retail Trade 0.3 3.8 Social Services 3.2 2.6

Price Index (%) 2011/12 2012/13 - Change in consumer price index (urban) (January 2010 = 100) 3.8 2.8 - Change in producer price index (2004/2005 =100) 1.1 9.8

_______________________________________________ * The base year of GDP data was changed to 2011/2012.

July/Sept. 2011/12 2012/13 -Monetary Survey

End of Period Growth rate of domestic liquidity (M2) (%) 1.5 2.7 Growth rate of time and saving deposits in local currency (%) 1.7 3.1 Growth rate of deposits in foreign currencies (%) 0.1 1.1 Foreign currency deposits/Total deposits (dollarization rate) (%) 20.8 20.3 Credit to the private business sector/Total credit (%) 34.3 30.1 Net claims on the government/Total credit (%) 51.2 56.0 Credit to the household sector/Total credit (%) 10.8 10.2 Credit to the public business sector/Total credit (%) 3.7 3.7 Change in the credit to the private business sector/Change in total credit (%) 1.2 0.1 Change in net claims on the government/Change in total credit (%) 89.3 92.6 Change in credit to the household sector/Change in total credit (%) 5.8 5.2 Change in credit to the public business sector/Change in total credit (%) 3.7 2.1 Loans/Deposits with banks (%) 49.4 48.5 Investment in securities, TBs and equity participations/Deposits (%) 49.3 55.2 Net international reserves (US$ mn) at end of period 24009 15043 Number of months of merchandise imports covered by NIR 4.9 3.3

July/Sept.

2011/12 2012/13 Annual Discount and Interest Rates (%)

End of Period CBE Lending and Discount Rate 8.50 9.50 Interest Rates on TB Repos (7-days) 9.25 9.75 Overnight Deposit and Lending Rates at the CBE

Deposit 8.25 9.25 Lending 9.75 10.25

Interest Rate on Deposits of More than One Month up to Three Months 6.80 7.70 Interest Rate on Loans up to One Year 11.20 12.00

US Dollar Exchange Rate Announced by the CBE

(PT/Dollar)

Buy and Sell Exchange Rates (Average of the Period) 596.2 608.0 End of the Period (Buy Rate) 595.3 608.0

2012/13 Estimates

FY Actual

(July/Sept.)

Consolidated Fiscal Operations of the General Government (Budget Sector)

LE bn -Total Revenues 393.5 50.7 -Total Expenditures 533.8 101.4 -Cash Deficit/Surplus 140.3 50.7 -Net Acquisition of Financial Assets -5.3 0.1

135.0 50.8 Overall Deficit (Surplus)

Total Finance 00 50.8 -Domestic Finance 00 87.9

Banking 00 51.5 Non-Banking 00 36.4

-Foreign Borrowing 00 -1.0 -Arrears 00 - -Other 00 -0.2 -Revaluation Differences 00 0.4 -Net Privatization Proceeds 00 - -Difference between TBs Face and Present Value 00 -26.4 -Discrepancy 00 -9.9 -Cash Deficit (Surplus) as a Percentage of GDP 8.0 2.9 -Overall Fiscal Balance as a Percentage of GDP 7.7 2.9 -Expenditures as a Percentage of GDP 30.4 5.8 -Revenues as a Percentage of GDP 22.4 2.9

End of

June 2012 Sept. 2012 Domestic Public Debt

LE bn Gross, due on: 1238.1 1331.2 -Government Debt (Net) 990.5 1079.7 -Public Economic Authorities Debt (Net) 63.1 66.4 -NIB Debt (Net) minus Intra-debt 184.5 185.1

___________________________________ 00 Non-available.

US$ bn July/Sept. Balance of Payments

2011/12 2012/13 Current Account and Transfers -2.2 -0.3 Trade Balance -7.8 -6.9 Merchandise Exports 6.8 6.9

Oil and its Products % 47.8 48.5 Other % 52.2 51.5

Merchandise Imports 14.6 13.8 Intermediate Goods % 28.6 28.3 Investment Goods % 16.2 17.1 Consumer Goods % 23.6 23.1 Fuel, Raw Materials and Others % 31.6 31.5

Services Balance 1.6 1.7 Receipts, of which: 5.4 5.6

Transportation % 38.4 39.6 Travel % 49.9 46.8 Investment Income % 1.0 1.0

Payments, of which: 3.8 4.0 Transportation % 8.2 11.0 Travel % 16.5 18.3 Investment Income % 47.1 41.1

Transfers 4.0 4.9 Official % 0.4 0.8 Private % 99.6 99.2

Capital and Financial Account 0.5 0.4 Overall Surplus/(Deficit) -2.4 -0.5 Outstanding External Debt (at End of Sept.) 34.0 34.7

- 1 -

1- Macroeconomic Developments

1/1- Gross Domestic Product (GDP) According to the data of the Ministry of Planning, the base year has been

replaced by FY 2011/2012 at the beginning of the five-year plan. Indicators showed that the real GDP growth inched up to 2.6 percent (at market prices) and 2.5 percent (at factor cost) during the first quarter of FY 2012/2013, from 0.2 percent and 0.3 percent, respectively, during the previous corresponding period.

Gross Domestic Product at Constant Prices∗

July/September Value (LE bn) Growth Rate (%)

2011/2012 2012/2013 2011/2012 2012/2013 GDP at factor cost 386.0 395.8 0.3 2.5 Indirect taxes (net) 16.1 16.6 -2.0 3.1 GDP at market prices 402.1 412.4 0.2 2.6 Source: Ministry of Planning. *At 2011/2012 prices.

- GDP (at Factor Cost and 2011/2012 Prices)

The increase in real GDP growth (2.5 percent) during the first quarter of

FY 2012/2013 was mainly due to the higher contribution of domestic demand-driven sectors (2.59 percentage points), with a relative weight of 102.4 percent of economic growth. The key contributors to growth were agriculture, irrigation

Real GDP Growth Developments (At Factor Cost)

1.9 2.2

5.5

0.3 0.4

5.2

3.3 2.5

-3.8

5.7

0.3

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

2010

/201

1

2011

/201

2

July

/Sep

t.

Oct

./Dec

.

Jan.

/Mar

.

Apr

./Jun

e

July

/Sep

t.

Oct

./Dec

.

Jan.

/Mar

.

Apr

./Jun

e

July

/Sep

t.

2010/2011 2011/2012 2012/2013

(%)

- 2 - and fishing (0.53 percentage point), the sectors of manufacturing and wholesale and retail trade (0.41 percentage point), the general government (0.25 percentage point) and construction and building (0.20 percentage point).

On the other hand, the external demand-driven sectors made a negative contribution of 0.06 percentage point to real GDP growth. The slowdown was ascribed, above all, to the negative share of the Suez Canal (0.07 percentage point) and manufacturing (0.01 percentage point). Conversely, the tourism sector provided a positive contribution of 0.02 percentage point.

Real GDP Growth at Factor Cost(Annual Basis)

2.8

6.8

3.45.1 4.1 3.8 3.2

4.25.4

2.64.4

2.7

0.6

3.33.24.2

-0.1

3.0

-3.4

-15

-10

-5

0

5

10

Agric

ultu

re, I

rrig

atio

n &

Fish

ing

Extra

ctio

ns

Man

ufac

turin

g

Elec

trici

ty

Wat

er

Sani

tatio

n

Con

stru

ctio

n &

Build

ing

Tran

spor

tatio

n &

Stor

age

Com

mun

icat

ions

Info

rmat

ion

Suez

Can

al

Who

lesa

le &

Ret

ail T

rade

Fina

nce

Insu

ranc

e

Soc

ial S

olid

arity

Tour

ism

Rea

l Est

ate

Gen

eral

Gov

ernm

ent

Soci

al S

ervi

ces

(%)

Q1 2012/2013 (2.5%) Q1 2011/2012 (0.3%)

- 3 -

Growth Rate and Share of Productive Sectors in Real GDP Growth (At Factor Cost)

In the First Quarter of FY 2012/2013 Sector Share in Real GDP

Growth (Percentage Point)

Growth Rate

(%) Domestic Demand- Driven Sectors

Agriculture, irrigation and fishing 0.53 3.0 Manufacturing 0.41 2.8 Electricity 0.09 6.8 Construction and building 0.20 5.4 Transportation and storage 0.14 3.4 Communications 0.12 5.1 Wholesale and retail trade 0.41 3.8 Finance 0.11 3.2 Social Solidarity 0.10 3.3 Real estate 0.10 4.2 General government 0.25 2.7 Social services 0.10 2.6 Other sectors* 0.03 3.9 Total 2.59

External Demand-Driven Sectors Extractions -0.01 -0.1 Suez Canal -0.07 -3.4 Tourism 0.02 0.6 Total -0.06 Grand Total 2.53 ∗ Including the sectors of water, sanitation, IT and insurance.

Turning to the public and private sectors, they provided together 2.5

percent of GDP growth during July/September 2012/2013. The private sector was the key performer with a share of 1.96 percentage point, given that nearly a quarter of this contribution came from agriculture, irrigation and fishing (0.53 percentage point). The wholesale and retail trade sector accounted for 0.40 percentage point and the manufacturing sector added 0.37 percentage point. The public sector shared with 0.57 percentage point. The major contributors were the sectors of the general government, social insurance and electricity, while the share of the Suez Canal was negative.

- 4 -

- GDP and Sectoral Analysis of Output Gap The output gap, which reflects the current business cycle of the Egyptian

economy, was calculated by comparing the estimates of potential real GDP growth rates* to actual rates (seasonally adjusted). The comparison showed that the economic cycle slowed down to -0.5 percent during the first quarter of FY 2012/2013, compared to (0.1 percent) in the preceding quarter.

* The trend component was calculated by using the quarterly data of both the GDP and a set of economic sectors during the period of 2001/02 – Q1 2012/13, by applying the approach of Hodrick-Prescott Filter. Then, the cyclical component which reflects the output gap was derived.

Contribution of the Private Sector to Real GDP Growth(at Factor Cost)

0.530.01

0.370.18

0.120.09

0.010.40

0.020.100.10

0.04

0.00 0.10 0.20 0.30 0.40 0.50 0.60

Agriculture, Irrigation & FishingExtractions

ManufacturingConstruction & Building

Transportation & StorageCommunications

InformationWholesale & Retail Trade

FinanceTourism

Real EstateSocial Services

July/Sept. 2012/2013 (1.96 percentage point)

Contribution of the Public Sector to Real GDP Growth(at Factor Cost)

-0.020.04

0.090.01

0.030.020.03

-0.070.01

0.070.01

0.100.25

-0.10 -0.05 0.00 0.05 0.10 0.15 0.20 0.25 0.30

Extractions Manufacturing

ElectricityWater

Construction & BuildingTransportation & Storage

CommunicationsSuez Canal

Wholesale & Retail TradeFinance

InsuranceSocial Solidarity

General Government

July/Sept 2011/2012 (0.57 percentage point)

- 5 -

Actual GDP Growth Rates (Seasonally Adjusted) and the Output Gap of Main Economic Sectors

Output Gap

(Economic Business Cycle) %

Actual Growth Rate %

July/Sept. April/June July/Sept. April/June

Sector

2012/2013 2011/2012 2012/2013 2011/2012 Real GDP Growth -0.5 0.1 2.6 3.2 Communications -2.2 -3.4 5.2 4.2 Construction and building -0.7 0.4 5.6 6.8 Electricity 1.5 1.6 6.7 6.8 Extractions -1.0 -0.7 0.2 0.5 Finance 0.0 -0.9 3.2 2.4 Government -0.6 -0.7 2.8 2.7 Tourism -1.4 11.5 0.4 13.3 Manufacturing 0.9 1.9 2.8 3.9 Real estate 0.6 0.1 4.0 3.6 Suez Canal -6.8 -4.9 -4.0 -2.0 Wholesale and retail trade 0.6 -0.7 3.9 2.6 Transportation and storage -0.5 -0.6 3.4 3.3 Source: Based on the Ministry of Planning data.

Development of Real GDP Growth Rate divided into GDP Trend and GDP Gap (Annual basis)

‐0.5

-7.0-8.0-6.0-4.0-2.00.02.04.06.08.0

10.0

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2012

/13

Q1

2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12

%

GDP Gap - Business Cycle Actual GDP Growth - Seasonally Adjusted Potential GDP-Trend

- 6 - By applying the above-mentioned methodology to the different

economic sectors, the sectors that caused the slowdown could be divided into two groups. Under the first group, the sectors that had a negative gap were classified (tourism, Suez Canal, construction and building and extractions), whereas the second group included sectors with a positive gap (manufacturing and electricity). In the forefront of the sectors that relatively improved their business cycles came wholesale and retail trade, real estate, communications and finance.

- GDP by Expenditure (at 2011/2012 Market Prices)

On the demand side, the increase in real GDP growth stemmed basically

from the higher contribution of final consumption to real GDP growth at market prices (2.3 percentage points) in Q1 2012/2013, due mainly to the larger share of the private sector (87 percent). Also, the growth in this quarter was attributed to the positive contribution of net external demand (exports of goods and services less imports of goods and services) that reached 1.1 percentage point, on the back of the better performance of the trade balance (the increase in exports and the decrease in imports) during Q1. However, the improvement in real GDP growth could have been better but for the rise in the negative contribution of capital formation (including change in the stock) during the period under review (a negative 0.9 percentage point).

Shares of Consumption, Investment and Net Exports in Real GDP Growth Rate (At Market Prices)

2.3

4.2

1.1

-2.3

-0.9

-1.7

-6

-4

-2

0

2

4

6

July/Sept. 2012/2013July/Sept. 2011/2012

Net ExportsCapital FormationFinal Consumption

(Per

cent

age

poin

t)

- 7 -

Growth Rate and Share of Demand Components in Real GDP Growth at Market Prices

July/September Growth Rate

(%) Share in GDP Growth

(Percentage Point)

2012/2013* 2011/2012 2012/2013* 2011/2012 2.6 0.2 2.55 0.20 Real GDP Growth 1.3 2.4 1.39 2.50 1-Domestic Demand 2.5 4.8 2.31 4.20 A- Final Consumption 2.4 5.0 2.01 3.90 Private 2.7 2.8 0.30 0.30 Public

-7.4 -11.4 -0.92 -1.70 B- Capital Formation (Including Change in Stock)

-2.9 -22.9 -0.35 -3.46 of which: Fixed Investment

-17.7 57.8 1.16 -2.30 2- Net External Demand

0.4 -2.9 0.07 -0.80 A- Exports of Goods and

Services

-4.4 4.5 1.09 -1.50 B- Imports of Goods and

Services Source: Based on the Ministry of Planning data. *2011/2012 prices.

Implemented investments (at 2011/2012 prices) stepped down by 2.9 percent, to register LE 46.2 billion during Q1 of FY 2012/2013 (against a decline of 22.9 percent during the previous corresponding period), due to the decrease in the public sector's investments to LE 13.4 billion (against LE 16.4 billion). This downtrend was largely caused by the sectors of natural gas, electricity, and transportation and storage. By contrast, the private sector’s investments accelerated to LE 32.8 billion, from LE 31.3 billion. The investments of this sector represented about 70.9 percent of total implemented investments during the period under review (against 65.7 percent), thanks to the sectors of manufacturing (excluding oil and natural gas), agriculture and irrigation, IT and tourism.

- 8 -

The sectoral distribution of investments in the reporting period ran as

follows: 30.2 percent in social services, 23.7 percent in productive services, 20.9 percent in extractions, 8.1 percent in the sectors of electricity, water and sanitation, 11.8 percent in manufacturing, 3.7 in agriculture, and 1.6 percent in construction and building.

Contribution of the Private Sector to the Real Growth of Investment

1.10.4

-0.30.0

2.50.8

-2.40.6

0.9

0.30.4

1.0

-2.5

-0.61.0

-12.0 -10.0 -8.0 -6.0 -4.0 -2.0 0.0 2.0 4.0 6.0

Agriculture, Irrigation & Reclamation Crude Oil

Natural Gas Oil Refining

Other Manufacturing Construction & Building

Transportation & Storage Communications

Information Wholesale & Retail Trade

Tourism Real Estate

Educational Services Health Services

Other Services

July/Sept. 2012/2013 (3.2 percentage points)July/Sept. 2011/2012 (-18.8 percentage points)

Contribution of the Public Sector to the Real Growth of Investment

0.2-1.2

-2.90.2

0.8-2.1

-2.0-0.1

-2.00.00.2

0.00.00.0

-0.70.7

0.3-1.4

4.9

-1.0

-4.0 -3.0 -2.0 -1.0 0.0 1.0 2.0 3.0 4.0 5.0 6.0

Agriculture, Irrigation & Reclamation Crude Oil

Natural Gas Oil Refining

Other ManufacturingElectricity

WaterDrainage

Construction & Building Transportation & Storage

Communications InformationSuez Canal

Wholesale & Retail TradeFinance

Real Estate Educational Services

Health ServicesOther Services

Settelments

July/Sept. 2012/2013 (-6.1 percentage points)July/Sept. 2011/2012 (-4.1 percentage points)

- 9 -

1/2 - Employment and Unemployment According to the quarterly Labor Force Survey (LFS) released by

CAPMAS, the size of the Labor force increased to 26.90 million persons in Q1 2012/2013, up by 16 thousand persons above the end of June 2012, and 243 thousand persons or 0.9 percent above the end of Sept. 2011. Moreover, data revealed that the number of the employed grew to 23.60 million at end of Sept. 2012 (18.90 million males and 4.70 million females), up by 54 thousand or 0.2 percent above the end of June 2012; and 49 thousand or 0.2 percent compared with the end of Sept. 2011. The sector of agriculture and fishing accounted for the majority of the employed, with a share of 27.2 percent of the total number.

Against this background, unemployment decelerated to 12.5 percent at end of Sept. 2012, from 12.6 percent at end of June, compared with 11.9 percent at end of Sept. 2011. In more detail, unemployment among males recorded 9.1 percent at end of Sept. 2012 (against 9.2 percent at end of June 2012 and 8.7 percent at end of Sept. 2011), compared with 24.0 percent for females (against 24.1 percent and 23.0 percent, in order).

8.9 8.9

11.9 11.8 11.9 12.6 12.6 12.512.4

-4.0

-2.00.0

2.04.0

6.08.0

10.012.0

14.0

Sept. Dec. Mar June Sept. Dec. Mar June Sept.

2010/2011 2011/2012 2012/2013

(%)

Unemployment Labor Force Employment

Labor Market Indicators (Growth Rates)

- 10 -

1/3- Inflation

)CPI(Consumer Price Index : A The first quarter of FY 2012/2013 witnessed a decline in the annual

headline CPI inflation (urban) to 2.8 percent (from 3.8 percent during the corresponding period a year earlier). The decrease was largely pronounced in the group of housing, electricity and fuel (0.3 percentage point against 1.0 point), and the group of alcoholic beverages, tobacco and narcotics (nil against 0.3 point). Decreases were also observed in the groups of furnishings, household equipment and routine maintenance, and clothing and footwear (by 0.1 point each).

Source : CAPMAS. On the other hand, increases were manifest in the group of food and non-

alcoholic beverages, whose share in headline inflation mounted to 2.3 points (from 2.2 points). Likewise, the shares of healthcare and communications grew by 0.1 point each. Yet, the contributions of the other groups remained at the same level.

Annual CPI and Price Index of Food and Non-Alcoholic Beverages (Urban)

11.8

10.4

8.5

8.2

7.1 9.

1 9.6

8.6 9.2

9.0

8.8

8.3

7.3

6.4

6.5

6.2

0.04.08.0

12.016.020.024.028.0

Jun.20

11 Jul

AugSep Oct

NovDec

Jan.2

012

Feb Mar AprMay Ju

n Jul

Aug

Sep.20

12

%

All Items Food and Non-Alcoholic Beverages

Contribution of Main Items of Food to Headline Inflation (Annually)During July/Sept.

-0.6-0.30.00.30.60.91.21.51.82.12.4

Meat &Poultry

Bread &Cereals

Fish Milk, Cheese& Eggs

Fruit Vegetables Sugar

Percentage Point

2011/2012

2012/2013

-11-

The following table illustrates the shares of CPI groups (urban) in headline inflation in the periods of review and comparison:

Main CPI Groups Inflation in

July/Sept. (%)

Share in Headline Inflation in July/Sept.

(Percentage Point) 2011/12 2012/13 2011/12 2012/13 General Index 3.8 2.8 3.8 2.8 Food and non-alcoholic beverages 4.9 5.0 2.2 2.3 Alcoholic beverages, tobacco and narcotics 9.2 0.0 0.3 0.0 Clothing and footwear 1.7 0.0 0.1 0.0 Housing, water, electricity, gas and fuel 6.3 1.8 1.0 0.3 Furnishings, household equipment and routine maintenance 3.4 0.3 0.1 0.0 Healthcare 0.1 1.8 0.0 0.1 Transportation 0.7 0.3 0.0 0.0 Communications -5.1 0.0 -0.1 0.0 Culture and recreation 4.6 3.5 0.1 0.1 Education 0.0 0.0 0.0 0.0 Restaurants and hotels 1.4 0.5 0.1 0.0 Miscellaneous goods and services 1.6 0.7 0.0 0.0

According to the CPI (urban), headline inflation (m/m) decelerated to 0.9

percent on average in the period under review (compared with 1.2 percent in the period of comparison), hitting its lower level (0.4 percent) in July 2012.

Monthly Inflation Rate According to CPI (Urban)

-1.0

-0.5

0.0

0.5

1.0

1.5

Jun-11 Ju

lAug

Sep OctNov

DecJa

n-12

Feb Mar AprMay Ju

n Jul

Aug

Sep-12

%

- 12 -

B: Producer Price Index (PPI)

In the first quarter of FY 2012/2013, the annual headline PPI inflation noticeably climbed to 9.8 percent, from 1.1 percent in the corresponding period a year earlier.

The rise in PPI inflation was traced to the higher contribution of

agriculture and fishing (6.1 points against 0.2 point), owing to the rise in the subgroup of vegetables (6.9 points against nil). This uptrend was mainly driven by the marked acceleration in the inflation rate of this group from 0.5 percent to 18.6 percent. The share of mining and quarrying also edged up (3.2 points against 0.3 point), notably because of the higher contribution of crude oil (4.9 points against 0.5 point).

The higher inflation was also brought about by the pickup in the

contribution of food and accommodation groups (0.3 point against nil) and electricity and gas (0.1 point against nil). Conversely, the contribution of the manufacturing group fell (0.1 point against 0.5 point) and also that of water supply activities (nil against 0.1 point).

The following table shows the inflation rates and shares of PPI groups in headline inflation during the two periods of review and comparison:

Annual Inflation Rate According to PPI (2004/2005 = 100)

-6

-2

2

6

10

14

18

22

Jun-11 Ju

lAug

Sep OctNov

DecJa

n-12

Feb Mar AprMay Ju

n Jul

Aug

Sep-12

%

- 13 -

Shares of PPI Groups in Headline Inflation (2004/2005 = 100)

Inflation (%)

Share in Headline Inflation

(Percentage Point)

Share in Headline Inflation

(Percentage Point) July/September July/September July/September

Main PPI Groups

2011/12 2012/13 2011/12 2012/13

General Index 1.1 9.8 1.1 9.8 1-Agriculture, Irrigation and Fishing, of which: 0.5 18.6 0.2 6.1

Cereals and leguminous crops 0.7 -1.2 0.0 -0.1 Rice -14.3 -10.3 -0.2 -0.1 Vegetables 0.0 141.4 0.0 6.9 Fruit 0.7 -9.9 0.0 -0.7 Poultry and eggs -1.1 5.1 0.0 0.2 Fish 5.2 -2.5 0.1 -0.1 2-Mining and Quarrying, of which: 1.5 14.9 0.3 3.2 Crude oil 1.7 18.9 0.5 4.9 Sand and stone 4.7 0.0 0.0 0.0 3-Manufacturing, of which: 1.5 0.2 0.5 0.1

Processed food products, of which: 2.1 -0.2 0.2 0.0

Oils and fats 0.1 -0.2 0.0 0.0 Dairy products 0.1 0.0 0.0 0.0

Fertilizers 3.5 11.3 0.0 0.1 Wood and products 4.0 0.0 0.0 0.0 Cement 0.2 0.0 0.0 0.0 Iron and steel -1.6 -2.4 -0.1 -0.1 4-Electricity and Gas, of which: 0.0 7.3 0.0 0.1 Electric power generation, transmission and distribution 0.0 0.0 0.0 0.0 5-Water Supply Activities 4.9 0.0 0.1 0.0 6-Transportation and Storage, of which: 3.0 0.0 0.0 0.0

7- Accommodation and Food Services, of which: 1.8 7.6 0.0 0.3

Meal serving services in limited service facilities 0.0 1.2 0.0 0.0 8-Information and Communications 0.0 0.0 0.0 0.0 Source: CAPMAS.

-14 - 1/4- Tourism

According to the statistics of the Central Agency for Public Mobilization

and Statistics (CAPMAS) and the Ministry of Tourism, the number of arrivals rose during July/Sept. 2012/13 by 10.4 percent as compared with the previous corresponding period to 3.0 million (against 2.8 million). However, tourist nights by departure declined by 5.2 percent to 35.5 million (against 37.4 million) due to the drop in the average stay during the period to 11.6 nights (from 13.6 nights).

Source: The CAPMAS

As a consequence, tourism revenues decreased during July/Sept. 2012/13

by 2.3 percent as compared with the corresponding period to US$ 2.6 billion (against US$ 2.7 billion) in spite of the rise in the average spending per tourist a night by 3.0 percent to US$ 74.4 (against US$ 72.2).

Tourism revenues represented 0.9 percent of GDP at current market prices (against 1.0 percent in the period of comparison); and about 15.4 percent of total current receipts including transfers (against 16.3 percent).

Investments in the tourism sector amounted to some LE 1.6 billion during

July/Sept. 2012/13 (against LE 1.1 billion in the corresponding period), constituting 3.3 percent of total executed investments (against 2.4 percent). The private sector invested LE 1.5 billion or 93.6 percent of the total.

Number of Tourists and Tourist Nights during July/September

2.60

2.70

2.80

2.90

3.00

3.10

2011/2012 2012/2013

Mill

ion

Tour

ists

34.5

35.0

35.5

36.0

36.5

37.0

37.5

38.0

Mill

ion

Nig

hts

Number of Tourists Number of Tourist Nights

- 15 -

Tourism Indicators

July/Sept. 2011/2012 2012/2013 Change + (-) (%)

Number of arrivals (000s) 2760 3046 10.4 Number of tourist nights by departure (000s) 37420 35486 -5.2 The average spending per tourist a night (US$ ) 72.2 74.4 3.0 Tourism revenues (US$ bn) 2.70 2.6 -3.7 Current receipts including transfers (US$ mn) 16202 17499 8.0 Average tourist stay (night) 13.6 11.6 -14.7 GDP at current prices (LE bn)* 1570.0 1778 13.2 GDP at current prices (US$ bn)* 263.3 292 10.9 Average exchange rate during the year 5.962 6.080 2.0

Source: CBE, CAPMAS, and the Ministry of Planning and International Cooperation. * GDP during the year.

Geographical Distribution of Tourist Flows

1-Number of Arrivals

Total arrivals from all tourist markets mounted to 3.0 million tourists, up by 0.2 million or 10.4 percent compared with the previous corresponding period. Such a rise was mainly in the number of arrivals from the European countries and the Middle East group. The European group remained in the forefront, with a relative weight of 71.1 percent of total tourist flows, as the number of arrivals therefrom rose by 0.1 million or 5.3 percent. The Middle East group ranked second with a relative weight of 19.6 percent of total tourist flows, as the number of arrivals therefrom increased by 0.1 million or 30.4 percent.

Number of Tourist Arrivals

July/Sept.

2011/12 2012/13 No.

(000s) Relative Weight

No. (000s)

Relative Weight

Change

+ (-)

%

Total 2760 100.0 3046 100.0 286 10.4 Europe 2058 74.6 2167 71.1 109 5.3 Middle East 457 16.6 596 19.6 139 30.4 Africa 100 3.6 108 3.6 8 8.0 The Americas 67 2.4 74 2.4 7 10.4 Asia and the Pacific 72 2.6 94 3.1 22 30.6 Others 6 0.2 7 0.2 1 16.7

- 16 - 2- Tourist Nights by Departure:

Tourist nights spent by all departure groups declined by 5.2 percent to 35.5 million in July/Sept. 2012/13 (against 37.4 million in the same period a year earlier). The following table illustrates the relative importance of departure groups in terms of tourist nights by departure. The European group came in the lead, accounting for 66.5 percent of the total in the period under review, up by 1.9 percent as compared with the corresponding period. The Middle East group ranked second with a share of 23.2 percent of the total despite the decline in the number of tourist nights by 17.2 percent. The rates of decline in the number of tourist nights of other tourist groups were relatively high except for the Asian and Pacific countries that rose by 1.5 percent.

Number of Tourist Nights by Departure

July/Sept.

2011/12 2012/2013

No. (000s)

Relative Weight

No. (000s)

Relative Weight

Change + (-)

%

Total 37420 100.0 35486 100.0 -1934 -5.2 Europe 23134 61.8 23583 66.5 449 1.9 Middle East 9957 26.6 8241 23.2 -1716 -17.2 Africa 1980 5.3 1466 4.1 -514 -26.0 The Americas 1389 3.7 1227 3.5 -161 -11.6 Asia and the Pacific 919 2.5 933 2.6 14 1.5 Others 41 0.1 35 0.1 -6 -14.6

- 17 -

2- Monetary and Banking Developments 2/1- Monetary and Banking Policy and Monetary Aggregates

2/1/1- Monetary Policy As the ultimate aim of the monetary policy is price stability, the CBE seeks to bring inflation to an appropriate and stable level conducive to fostering confidence, stimulating investment, and achieving the targeted economic growth.

The overnight interbank interest rate is considered the operational target of the monetary policy, whereby a framework based on the corridor system is applied, within which the ceiling is the overnight interest rate on lending from the Central Bank, and the floor is the overnight deposit interest rate at the Bank.

Hereunder are the main developments that took place over the period

under review: 1- Interest Rates

The decisions taken by the MPC in its two periodic meetings held in

July/September of FY 2012/2013 were responsive to the changes in inflation and the Committee's estimates of inflationary pressures. In these meetings (dated July 26 and September 6, 2012), the MPC decided to keep the CBE's key interest rates (overnight deposit and lending rates) unchanged at 9.25 percent and 10.25 percent per annum, in order. Also, the lending and discount rate was maintained at 9.50 percent per annum, and the repo rate at 9.75 percent per annum. Subsequently, in the meetings of 18 October and 6 December 2012 and 31 January 2013 (at the time of preparing this Review), the MPC decided to keep the aforementioned rates unchanged.

The following table shows the CBE's key interest rates, 7-day repo rate

and the lending and discount rate, according to the MPC's decisions taken in the meetings held during the period: Overnight

Deposit Rate Overnight

Lending Rate 7-Day

Repo Rate Lending and

Discount Rate 14 June 2012 9.25 % 10.25 % 9.75% 9.50 % 26 July 2012 unchanged unchanged unchanged unchanged 6 Sept. 2012 unchanged unchanged unchanged unchanged

- 18 - The following chart displays that the weighted average of overnight

interbank interest rate in the period under review moved slightly below the middle of corridor. This was indicative of the improvement in liquidity levels at the banking system, as a result of the actions taken by the CBE during the preceding periods.

The weighted average of the market interest rate on three-month deposits

has remained stable at 7.7 percent since June 2012 till the end of September 2012, while the weighted average of the market interest rate on six-month and one year deposits rose to 7.8 percent and 8.8 percent, in order, in September 2012 (against 7.6 percent and 8.4 percent in June 2012). Also, the weighted average of the market rate on one-year loans increased to 12.0 percent+ in September 2012 (from 11.9 percent in June 2012).

2- Open Market Operations

In the period under review, the CBE reduced the required reserve ratio twice (from 14 percent to 12 percent, and further to 10 percent), continued to conduct 7-day repo operations on a weekly basis, and made available the 28- day repo operations to provide adequate liquidity to a number of banks that face liquidity shortages. As a result, the liquidity level at the banking + Interest rate on corporate loans after the application of DMMS.

O/N Interbank Rate and Policy Rates

7.007.508.008.509.009.50

10.0010.5011.0011.5012.0012.5013.0013.5014.00

Jun-08

Sep-08

Dec-08

Mar

-09

Jun-09

Sep-09

Dec-09

Mar

-10

Jun-10

Sep-10

Dec-10

Mar

-11

Jun-11

Sep-11

Dec-11

Mar

-12

Jun-12

Sep-12

( % )

Overnight interbank Deposit facility Lending facility

- 19 - system was favorably influenced in the first quarter of FY 2012/2013. The liquidity shortage noticeably improved in the domestic market, declining on average to LE 3.4 billion at end of September 2012 (the shortage was an outcome of 7-day and 28-day repo operations and overnight deposits that averaged LE 7.7 billion, LE 6.1 billion, and LE 10.4 billion, in order). In comparison, at end of June 2012, the average liquidity shortage amounted to LE 26.7 billion (because of 7-day repo operations and overnight deposits in the amount of LE 33.1 billion and LE 6.4 billion on average). 2/1/2- Reserve Money (M0)

Reserve money (known as monetary base or high-powered money) is

considered the monetary base in its broad definition. Reserve money consists of the sum of currency in circulation outside the CBE and banks’ local currency deposits held at the CBE. The counterpart assets of reserve money are made up of the CBE's net foreign assets and net domestic assets. The latter includes net claims on both the government and banks, and other items (net).

Reserve money amounted to LE 251.7 billion at end of September 2012,

down by LE 11.9 billion or 4.5 percent during July/September 2012/2013 (against a decline of LE 9.8 billion or 3.9 percent in the corresponding period a year earlier). The decrease in reserve money reflected the decline in local currency deposits at the CBE by LE 17.0 billion or 29.0 percent, reaching LE 41.7 billion. However, the decline was held back by the rise of LE 5.1 billion or 2.5 percent in the currency in circulation outside the CBE, bringing its balance to LE 210.0 billion or approximately 83.4 percent of reserve money at end of September 2012.

2.3

(6.2)

2.3 1.9

(6.4)

4.4

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

2010/2011 2011/2012 2012/2013

Currency in circulation outside the CBE

Banks' deposits in local currency

Grow th rate of reserve money

(%)

Growth Rate of Reserve Money by Componentduring July/September

- 20 -

Reserve Money and Counterpart Assets (LE mn)

Change during July/Sept. + (-) 2011/2012 2012/2013

Balances at the End

of Sept. 2012 Value % Value %

A- Reserve Money 251723 (9750) (3.9) (11945) (4.5) Currency in circulation outside the CBE 209952 5885 3.3 5082 2.5 Banks' local currency deposits 41771 (15635) (21.7) (17027) (29.0)

B- Counterpart Assets 251723 (9750) (3.9) (11945) (4.5) Net Foreign Assets 70236 (15167) (10.3) (5823) (7.7) Foreign Assets 89350 (15038) (9.6) (2818) (3.1)

Foreign Liabilities 19114 129 1.4 3005 18.7 Net Domestic Assets 181487 5417 5.2 (6122) (3.3) Claims on the Government (Net) 196622 44570 43.5 31248 18.9 Claims on Banks (Net) -1655 (3000) (2040.8) 1051 (38.8) Net Other Items -13480 (36153) (3329.0) (38421) (154.0)

The breakdown of the currency in circulation (including subsidiary coins)

by denomination showed a slight rise in the relative importance of the medium denominations (LE 5, LE 10 and LE 20). These notes accounted for 6.2 percent of the total currency in circulation at end of September 2012 (against 6.0 percent at end of June). Likewise, the relative importance of the LE 200 note rose from 42.6 percent to 43.1 percent. By contrast, the relative importance of the LE 50 note declined from 10.1 percent to 9.8 percent, and so did the LE 100 note (40.1 percent from 40.5 percent). Against these changes, the average value per note decreased to LE 42.6 at end of September 2012 (against LE 42.8 at end of June).

Relative Importance of the Currency in Circulation by Denomination At End of

The pickup in the currency in circulation outside the CBE was a reflection

of the increase of LE 6.6 billion or 3.2 percent in banknote issue in July/September 2012/2013 (against LE 7.3 billion or 4.1 percent in the previous corresponding period), bringing its balance to LE 214.0 billion at end

Sept. 2012

6.2%

9.8%

40.1%

43.1%

0.8%

June 2012

6.0%10.1%

40.5%

0.8%

42.6%

Up to LE 1

LE 5-LE 20

LE 50

LE 100

LE 200

- 21 - of Sept. 2012. As for the components of the issue cover, the value of gold constituted LE 20.0 billion, the Egyptian government bonds LE 178.8 billion, and foreign currencies and notes LE 15.2 billion worth. Thus, the structure of the cover at end of Sept. was as follows: government bonds (83.6 percent), foreign currencies and notes (7.1 percent), and gold (9.3 percent).

The decline in the counterpart assets of reserve money was primarily

due to the contractional effect of both net domestic assets and net foreign assets. The former gave rise to 2.3 percentage points of the decline, while 2.2 percentage points were caused by the latter.

Components of the Banknote Issue Cover

16 2042

9

131.6 129.1

178.8 178.8

1620

32

1520406080

100120140160180200

June 2011 Sept. 2011 June 2012 Sept. 2012

LE bn

Gold Foreign currencies & notes Egyptian government bonds

Net claims on the government

78.1%

Net foreign assets 27.9%

Net claims on banks-0.7%

Net other items-5.3%

Relative Importance of Counterpart Assets of Reserve Money at End of Sept. 2012

- 22 - The LE 6.1 billion decrease in the CBE's net domestic assets was an

outcome of the decline in its other items (net), which was curbed by the rise in the CBE's net claims on both the government and banks. In figures, the CBE's net claims on the government picked up by LE 31.2 billion (owing to the LE 18.2 billion increase in its claims on the government and the LE 13.0 billion decline in government deposits therewith). Also, the CBE's net claims on banks rose by LE 1.1 billion, because of the rise in its claims by LE 0.9 billion and the drop in banks' foreign currency deposits at the CBE by LE 0.2 billion worth. Net other items had a contractional effect on money reserves, as they retreated by some LE 38.4 billion, registering a negative balance of LE 13.5 billion. That was traceable to the drop in the balance of open market operations by LE 36.2 billion (because of the decline in the balance of repo agreements by some LE 23.0 billion and the rise in banks' deposits at the CBE by LE 13.2 billion), and the decline in net unclassified assets and liabilities by LE 2.2 billion.

Meanwhile, net foreign assets at the CBE shrank by LE 5.8 billion worth,

due to the fall in the CBE's foreign assets by LE 2.8 billion worth and the rise in foreign liabilities by the equivalent of LE 3.0 billion.

- 23 -

2/1/3- Domestic Liquidity (M2) and Counterpart Assets

Domestic liquidity is composed of currency in circulation outside the banking system and deposits at banks (in both local and foreign currencies). At end of September 2012, domestic liquidity posted LE 1124.3 billion, up by LE 29.9 billion or 2.7 percent in the period July/September 2012/2013 (against a rise of LE 15.0 billion and 1.5 percent in the same period a year earlier), which is nearly double the increase that took place in the corresponding period.

Structure of Domestic Liquidity

End of September 2012

Money supply25.2%

Foreign currency time & saving

deposits12.7%

Foreign currency demand deposits

4.0%

Local currency time and saving deposits

58.1%

Quasi-money74.8%

The pickup in domestic liquidity was a reflection of the growth in money

supply and quasi-money. Money supply (M1) scaled up by LE 8.3 billion or 3.0 percent in the reporting period (against LE 5.1 billion or 2.0 percent in the period of comparison), amounting to LE 282.8 billion or 25.2 percent of total domestic liquidity at end of September 2012. The rise in money supply reflected the increase in the currency in circulation outside the banking system by LE 4.0 billion or 2.1 percent and the pickup in local currency demand deposits at banks by LE 4.3 billion or 5.3 percent.

Quasi-money augmented by LE 21.6 billion or 2.6 percent in the reporting

period (against LE 9.9 billion or 1.3 percent in the respective period a year earlier), scoring LE 841.5 billion or nearly three quarters (74.8 percent) of domestic liquidity at end of September 2012. That rise reflected the growth in both LE time and saving deposits and foreign currency deposits (demand and time and saving). LE time and saving deposits surged by LE 19.5 billion or 3.1 percent, to LE 653.3 billion or 77.6 percent of total quasi-money and 58.1 percent of total domestic liquidity at end of September 2012. The increase of LE 23.7 billion or 4.2 percent to LE 586.2 billion in LE time and saving deposits of the household sector outstripped the rise in total deposits. Nevertheless, such a rise was held back by the fall in the deposits of the business sectors (public and private) by LE 4.2 billion.

- 24 - Deposits in foreign currencies went up by only LE 2.1 billion worth or 1.1

percent to LE 188.2 billion or 20.3 percent of total deposits at banks (dollarization rate) at end of September 2012 (against 20.7 percent at end of June 2012).

Dollarization Rate (Deposits in US$/Total Deposits)& Interest Rates on Deposits in LE & US$

0.0

2.0

4.0

6.0

8.0

10.0

Sept.0

7

Dec.07

Mar.08

Jun.0

8

Sept.0

8

Dec.08

Mar.09

Jun.0

9

Sep.09

Dec.09

Mar.10

Jun.1

0

Sept.1

0

Dec.10

Mar.11

Jun.1

1

Sept.1

1

Dec.11

Mar.12

Jun.1

2

Sept.1

2

(%)

18.0

20.0

22.0

24.0

26.0

28.0

30.0

(%)

Interest Rate on 3-month Deposits in US$ Interest Rate on Less Than 3-month Deposits in LEDollarization Rate

The increase in domestic liquidity was traced to the rise in net domestic

assets. However, such an increase was held back by the fall in net foreign assets. Net domestic assets made a positive contribution to domestic liquidity growth (3.4 percentage points), while the latter made a negative contribution (0.7 point).

Domestic Liquidity Growth by Counterpart Assets

July / September

3.2

-2.8

-0.7

5.0

-1.8-0.7

1.9

4.9

-1.5

3.31.5 2.7

-8.0

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

10.0

2010/2011 2011/2012 2012/2013

Net Foreign Assets

Domestic Credit Assets

Other Balancing Items (Net)

Domestic Liquidity Growth (percentage point)

- 25 -

The increase in net domestic assets (LE 37.5 billion) was ascribed to the pickup in domestic credit by LE 59.7 billion or 5.6 percent (against LE 50.3 billion or 5.6 percent) to LE 1132.3 billion at end of September 2012. The rise was curbed by the increase in the negative balance of net balancing items by LE 22.2 billion or 16.4 percent to LE 158.0 billion.

About 92.6 percent of the increase in domestic credit during the period

went to the government sector. Net claims on the government markedly expanded by LE 55.3 billion or 9.6 percent (against LE 45.0 billion and 10.3 percent), bringing its balance to LE 634.0 billion or 56.0 percent of the credit granted by banks at end of September 2012. The rise was an outcome of the pickup in banks' holdings of government securities and TBs by LE 20.9 billion, the increase in government loans by LE 19.6 billion and the decrease in government deposits at banks by LE 14.8 billion.

Public Business Sector3.7%

Household Sector10.2%

Private Business Sector30.1%

Government Sector (net)

56.0%

Domestic Credit by Sector at End of September 2012

Rising by LE 3.1 billion or 2.8 percent (against LE 2.9 billion or 2.9

percent), credit to the household sector recorded LE 115.5 billion or 10.2 percent of total domestic credit. The share of the public business sector also expanded by LE 1.3 billion or 3.1 percent (against LE 1.9 billion or 5.7 percent), bringing its balance to LE 41.9 billion (3.7 percent of total credit). Credit to the private business sector went up by only LE 42 million (against a rise of LE 593 million), to register LE 340.9 billion or 30.1 percent of total domestic credit at end of September 2012.

- 26 -

Relative Structure of Net Foreign AssetsAt End of September 2012

Net Foreign Assets with the

CBE46.8%Net Foreign

Assets with Banks53.2%

Net foreign assets at the banking system (expressed in LE) reached

LE 150.0 billion at end of September 2012, with a retreat of LE 7.6 billion or 4.8 percent in the reporting period (against a decrease of LE 28.2 billion or 11.1 percent in the same period a year earlier). The decline was brought about by the fall in net foreign assets at the CBE by LE 5.8 billion or 7.7 percent and at banks by LE 1.8 billion or 2.2 percent.

Change in Foreign Assets and Liabilities at the Banking System

(Value in LE mn)

Change during July/September + (-) 2011/2012 2012/2013

Value Growth Rate % Value Growth Rate

% Net Foreign Assets at the Banking System (28241) (11.1) (7642) (4.8)

Net Foreign Assets at the CBE (15167) (10.3) (5823) (7.7) -Foreign assets (15038) (9.6) (2818) (3.1) -Foreign liabilities 129 1.4 3005 18.7 Net foreign Assets at Banks (13074) (12.3) (1819) (2.2) -Foreign assets (14522) (10.4) (3745) (3.3) -Foreign liabilities (1447) (4.4) (1926) (5.8)

- 27 -

2/1/4- Payment Systems and Information Technology (IT)

The CBE continued its efforts to upgrade the payment systems and information technology to bolster the soundness and stability of the financial system and reduce credit risks, together with expediting payment settlements and ensuring their credibility and confidentiality. A step forward in this direction was the introduction of the RTGS system. Among the measures taken in this regard were the following: Payment Systems • The project of automating the payment of civil servants’ salaries via cards is

moving forward, in cooperation with the Ministry of Finance after being disrupted following 25 January Revolution. A number of new governmental units were put into operation at the National Bank of Egypt. Among the vast benefits of this project was minimizing the risks of fund transfer of salaries from banks to the related government units.

• The rules of ACH direct debit effected in the Clearing House, between banks and the Egyptian Banks Company, have been reviewed. Such payment services will help facilitate the expansion of electronic-based payments. The service went through a pilot phase in October 2012.

• The CBE is currently gearing to join the COMESA Clearing House. This initiative aims at supporting the trade exchange with the COMESA countries as a major contributor to the Egyptian national security. The relevant internal rules and procedures are under consideration by the Central Bank of Egypt, parallel to the sign-off of the related agreements with COMESA and the Central Bank of Mauritius.

• In collaboration with the Ministry of Finance, the CBE is in the process of transferring government payments (paper cheques) into electronic payments to be effected by banks through Automated Clearing House. That project aims at upgrading government procedures and tightening control on government payments. Such a project is scheduled to start in the first quarter of 2013.

Information Technology • The CBE has finished drawing out the terms/specifications booklet for the

preparation of a permanent Disaster Recovery (DR) site for the CBE, to be functional in emergencies as a substitute for the main data centre in El-Gomhoreya Building. This is intended to ensure the continuity of IT services.

- 28 -

Also, procedures are currently being taken to invite the specialized companies for bidding

• The CBE made an elaborate study of the needs of the IT (including the

estimated cost) for the establishment of a “Business Continuity Site” designed to be accessible, in emergency cases, to the employees of the sectors of investment and external relations and their affiliate units, to enable them to use the bank's different systems. In addition, the possibility of making such service available to the other sectors of the bank is to be posed for consideration.

• In respect of the IT development plan at the Printing Press, the course of

action to be taken to complement the development of the other three systems (accounts - monitoring of inventory - costs) is currently under consideration, together with modernizing the IT infrastructure of the Press.

• Under the plan of developing the CBE branches and modernizing their IT

applications; as far as the operations of government accounts are concerned, the accounting system of the CBE “CAS” started operation in Alexandria branch. A study of the application of CAS to the other branches (Mohandessin and Port Said) is about to be finished soon.

• The CBE has participated in the IT infrastructure installation and

implementation project and took the necessary precautions to put the GATS system, for electronic government transfers, into operation. The project aims at enabling the Ministry of Finance to transform government payments to the CBE, into electronic (cashless) government payments. Such a step is bound to enhance the efficiency, accuracy and speed of making the accounting entries on the same day of their receipt.

• The IT infrastructure installation and implementation project has been

launched and necessary precautions have been taken to put the “Straight Through Processing” system of the automated clearing house (ACH-STP) into operation. By linking the CBE to the interbank ACH, the project will enable it not only to receive electronic transfers from other banks, but also to automatically and directly affect government accounts on the CAS system therein. In this sense, the project will upgrade and expedite the settlement of the government receipts processed through the ACH of banks.

- 29 - 2/1/5- RTGS and SWIFT Local Services

Local banking transfers under the RTGS (introduced in mid March 2009)

showed an increase in the number of executed messages to 339.5 thousand messages at a value of LE 2552.9 billion in July/September of FY 2012/2013 (against 309.1 thousand messages at a value of LE 2338.9 billion in the corresponding period a year earlier).

RTGS and SWIFT Local Services

(in Local Currency) Change during the Period

July/Sept. Number of Messages

(Unit)

Value of Transfers (LE mn) Number Value

2010/2011 316691 3802138 53031 1008155 2011/2012 309136 2338931 (7555) (1463207) 2012/2013 339472 2552915 30336 213984

According to the statistics of the CBE Automated Clearing House that

became part of the RTGS system since its initiation, the number and value of exchanged cheques scaled up to 3.3 million at a value of LE 170.8 billion (from 3.1 million and LE 162.0 billion in the same period a year earlier). As a result, the average value per cheque decreased to LE 52.4 thousand (against LE 52.7 thousand).

CBE Automated Clearing House Activity Change Rate (%) July/Sept. Number of Cheques

(Thousand) Value of Cheques

(LE mn) Number Value 2010/2011 3193 154102 2.8 13.5 2011/2012 3072 162014 (3.8) 5.1 2012/2013 3257 170778 6.0 5.4

Transactions executed in foreign currencies under the Fin-Copy system,

via SWIFT, revealed a decrease in terms of the number and value of executed transactions. Specifically, their number amounted to 3.1 thousand at a value of US$ 11.3 billion, against 3.4 thousand at a value of US$ 16.6 billion a year earlier.

SWIFT Local Services (in US Dollar)

Change during the Period July/Sept.

Number of Messages

(Unit)

Value of Transfers (US$ mn) Number Value

2010/2011 3179 19624 647 5513 2011/2012 3405 16601 226 (3023) 2012/2013 3079 11310 (326) (5291)

- 30 -

2/2- Banking and Credit Developments

2/2/1- Banking Reform

In continuation of the banking reform program, launched in September 2004, the CBE finished the implementation of the second phase (2009-2011). This phase aimed at raising the efficiency and soundness of the Egyptian banking sector, and enhancing its competitiveness and ability for risk management so that it can perform its role in financial intermediation in a way beneficial to the national economy, and achieve the targeted development rates. The second phase of the reform program was based on a number of pillars, namely:

Preparing and implementing a comprehensive program for the financial and administrative restructuring of specialized state-owned banks (the Principal Bank for Development and Agricultural Credit, the Egyptian Arab Land Bank, and the Industrial Development and Workers Bank of Egypt), which is expected to positively affect these banks’ performance.

Following up periodically the results of the first phase of restructuring the commercial state-owned banks (the National Bank of Egypt (NBE), Banque Misr (BM) and Banque du Caire (BdC)). The follow-up showed that the first phase of the banking sector reform program (2004-2008) had already borne fruit. In the second phase, the requirements for enhancing the efficiency of the said banks - in terms of financial intermediation, risk management, human resources, and IT - have been fully satisfied to ensure the continued improvement of their financial performance and competitiveness.

Applying Basel II standards in Egyptian banks is considered an integral part of Egypt's regulatory framework, that aims at the following: - Enhancement of the management of all risk types to ensure banking

stability. - A more efficient management of capital, in order to address virtual

risks. - Keeping pace with the international best practices, to help improve the

competitiveness of the Egyptian banking system.

In this context, a protocol had been signed with the European Central Bank and seven European central banks to provide a three-year technical assistance program launched in January 2009, to implement Basel II requirements in the

- 31 - Egyptian banking sector. It is worthy to note that the strategy of the CBE in implementing Basel II framework, which was announced for Egyptian banks and the relevant parties in an extensive meeting held in Oct. 2009, is based on the two main principles of simplicity and consultation with banks, to ensure banks’ compliance with these standards. According to the above-said strategy, Basel II standards should be phased in gradually over the following phases:

• The first phase (January - June 2009) focused on improving the

technical skills of the CBE’s core team and devising a strategy for Basel II implementation. This phase was successfully completed.

• The second phase (July 2009 - June 2011) - the pivotal phase of the reform program - covers extensive coordination with the banking sector, through discussion papers related to the most important topics and selection of the most appropriate methods for application in Egypt, taking into consideration similar experiences in other countries that had implemented Basel II. Moreover, the quantitative impact of the possible consequences of Basel II standards will be measured before the mandatory application. That phase was also successfully completed.

• The third phase (July - December 2011) focused on the fine-tuning of future supervisory regulations related to Basel II, taking into account the legal aspects and development of corrective action plans commensurate with the different types of banks, according to the simulation results for each bank on a case-by-case basis. Also, a parallel run of existing regulations and Basel II will be applied upon issuance. In this context, draft regulations and some relevant proposals have already been set, as concerns banks that need to take additional actions to abide by the established minimum requirements of the capital adequacy standard. A study of the qualitative impact was also conducted on a sample of banks, pertaining to the level of internal audit to pave the way for the issuance of related supervisory regulations. In addition, some of the resources provided by the EU have been used to upgrade the regulatory performance of the Supervision Sector. Moreover, a new data warehousing framework will be implemented to improve the process of data collection and storage, in accordance with the future updated supervisory regime.

- 32 -

• The fourth phase (implementation is under way) - a parallel run of Basel II and the existing regulations on capital adequacy will be applied upon issuance. Moreover, the data warehousing framework will be finalized.

It should be taken into consideration that Basel standards develop and

change in their own right, by virtue of their dynamic nature, so as to cope with the challenges of the global banking market. In this context, Basel III has been launched on the international level, and its full and timely implementation in the world banking market is expected to be completed by 2019. It is to be noted that while making arrangements for the application of Basel II, the CBE has been also considering Basel III applications in order to facilitate their future adoption in the Egyptian banking sector.

During the preparation of this Review, the executive instructions of Basel II were applied to the Egyptian banking system. For banks which prepare their financial statements at the end of Dec. of each year, these standards shall be binding as of Dec. 2012, and for the other banks, as of June 2013 (Decision of the CBE Board of Directors dated 18 Dec. 2012).

The second phase of the banking reform program which was guided by the positive results of the first phase (2004-2008) had been finalized by the end of March 2012. Foremost of these results were the efforts exerted to contain the impact of the recent global financial crisis, as was the case in most other international financial markets and banking systems and, not least, the resilience of the Egyptian banking system in the wake of the events of January Revolution. Also, a shift was made from compliance-based to risk-based supervision. Furthermore, the MIS system was upgraded to ensure the accuracy and timeliness of required data. The European Central Bank took part in the first phase of upgrading the CBE Supervision Sector by concluding a cooperation agreement in 2005.

Embracing an initiative promoting the development and growth of banking activities/services catering and access to finance for various sectors, especially small- and medium-sized enterprises (SMEs). In this regard, the CBE exempted banks' deposits - equivalent to the size of direct loans and credit facilities extended thereby to finance SMEs - from the 14 percent required reserve ratio (RRR was decreased to 12 percent and further to 10 percent during Q1 and Q2 of 2012, respectively). Needless to say that poor access to adequate, timely and reliable statistical data and information is one of the main obstacles to the development and finance

- 33 -

of small- and medium-sized enterprises (SMEs). Hence, the Central Bank of Egypt and the Egyptian Banking Institute (EBI), in collaboration with the Central Agency for Public Mobilization and Statistics (CAPMAS), embarked on a field survey of small- and medium-sized enterprises (SMEs) covering all the governorates of Egypt, on the basis of the full count approach. The first phase, conducted in Al Sharqiya Governorate, had been completed, and in the light of its results, the survey was carried out in the rest of the governorates. It is worthy to mention that all other governorates were surveyed, up to December 2011. Moreover, the database has been inaugurated on the EBI website in February 2012.

Revising and issuing corporate governance rules in the Egyptian banking sector and the CBE. In this concern, the instructions of bank governance rules were approved by the CBE Board Decision dated July 5, 2011, after consultation with the Egyptian Financial Supervisory Authority (EFSA) within the framework of coordination among the regulatory authorities of the financial sector. Moreover, the draft of the said instructions was presented to all banks to get their feedback (comments and proposals) to avoid the difficulties of application.

The first phase of the banking reform program (2002-2008) was centered

on four pillars: (1) consolidation and privatization of the banking sector, (2) financial and managerial restructuring of state-owned banks, (3) addressing the non-performing loans issue, and (4) upgrading the Supervision Sector at the CBE. As for the first pillar, some voluntary and state-forced mergers took place, leading to a decrease in the number of banks operating in Egypt from 57 at end of December 2004 to 39 banks at end of December 2008. Under this program, 80 percent of the share of the capital of the Bank of Alexandria was sold to Italy’s Sanpaolo Bank, besides the divestiture of the shareholdings of state-owned banks in a number of joint venture banks.

With respect to the second pillar, state-owned banks were restructured under a comprehensive and time-lined plan, designed by the Banking Reform Unit at the CBE. The plan was intended to develop all departments and technological systems, besides establishing new departments, particularly for risk management, information technology (IT), and human resources. To this end, a project on the application of the international best practices - implemented with the assistance of foreign consultants - was completed on time. In addition, a full audit of state-owned banks was conducted according to international accounting standards, covering the years from 2004 to 2008. Finally, the recruitment of highly qualified banking cadres and senior management at state-owned banks has supported those banks with adequate expertise to enable them to push ahead with reform and development.

- 34 -

Concerning the third pillar, to address the problem of non-performing loans, the CBE's NPL Management Unit worked out a variety of approaches and programs that helped settle more than 90 percent of NPLs (excluding debts of the public business sector). With regard to the non-performing loans of public business sector enterprises to public banks, about 62 percent was repaid in cash to the public commercial banks. As for the remaining debts (38 percent), an agreement was signed on 14/9/2009 whereby the in-kind repayment of the outstanding debt was made at the end of June 2010.

A program to reform the Supervision Sector was devised to achieve the following targets: enhance the efficiency of this sector by benefiting from the international best practices, and apply the concept of risk-based supervision to ensure the sector’s robustness and soundness. 2/2/2- Supervision Sector

Being the regulator of banks in Egypt, the CBE aims to ensure the

soundness of banks’ financial positions and evaluate their performance from the perspective of risk-based supervision. In addition, it ascertains banks’ compliance with the established regulatory standards, including the minimum reserve requirement and liquidity ratios, the maximum limits of a bank’s concentration of investments with a single customer along with his related parties, and investments abroad, as well as the asset-liability matching in terms of maturity and currency. This is in addition to a number of qualitative standards that ensure - alongside the abovementioned - the soundness of banks, performance and the safety of depositors’ funds, including governance rules; information systems efficiency rules; and eligibility and competency criteria for officials and managers of key sectors at banks.

The implications of the recent international financial crisis bore out that the instructions and reform policies adopted by the CBE to restructure banks, raise their capital and strengthen their risk management systems proved highly instrumental in containing the effects of the crisis. Moreover, the CBE had thoroughly monitored the financial crisis in many countries, especially in the euro area, so as to be capable of making immediate decisions - when necessary - to counteract the spillovers of the crisis in due time. After the 25 th January revolution, the CBE took a number of measures to promote trade, maintain the banking sector transactions and launch the mechanisms that enhance liquidity.

- 35 -

Hereunder are the instructions issued by the CBE to all banks during and after the period under review:-

• Extending exemptions from the minimum cash cover limit (50%) for all

meat, poultry and sugar imports for additional six months, ending 30 June 2013.

• Banks are allowed to accept deposits in saving systems of three years and

more, placed by legal persons, given that their balances shall be included in the denominator of the required reserve ratio (RRR).

• As of the 1st of July till the end of Sept. 2012, a large number of banks

were required to conduct a comprehensive review of the information on defaulting clients according to the new categories. Also, the information introduced by the CBE Board Decision No. 104 for 2012 on 3 Jan. 2012 (amending the regulations of the credit registration system at the CBE) was added opposite to the client's name (eg. type and volume of bad debts that were written off without discharging the debtor, type and volume of rescheduled debts, the number of rescheduling operations concluded with the client, and the amount of claims waived in case the client repays his debts under a debt settlement). Moreover, the CBE followed up banks' progress in reclassifying defaulting clients who are listed in the negative list of credit rating according to the seven categories stated in the Decision as of Jan. 2008 till May 2012 to pave the way for the disclosure of such information to banks via the CBE website and I score. Accordingly, this will help in taking appropriate credit-granting decisions.

It is worthy to note that during the period under review, the CBE

continued to perform its assigned role (concerning the inspection of banks) through the inspection teams according to the set plan to ascertain their compliance with the rules governing the credit registration.

The CBE continued to work on developing the banking system, and maintaining its soundness and stability by ensuring the application of international best practices by banks. Moreover, the recent successive crises have highlighted the importance of supporting the governance systems and internal control at banks and enhancing the role of the regulatory entities. Against this background, the CBE Board of Directors issued, on its session dated 5 July 2011, a Decision on banks' governance rules. Banks were required to set or develop their governance systems accordingly, in line with the size and complexity of their respective activities, policies and risk management capacity;

- 36 - no later than 1 March 2012. In case any bank fails to abide by any of these rules, the matter should be referred to the CBE for consideration, attached with reasonable justifications.

The aforementioned governance rules mainly focused on the following:

▪ A clear definition of the responsibilities and obligations of the members of the board of directors, besides emphasizing that the senior management is accountable to the board;

▪ The roles of the board's committees and their formation; ▪ The supervisory role of the board on risk management and internal

control systems; ▪ Formulation of effective policies for salaries and remunerations and

for the management of conflicts of interest; and ▪ The principle of transparency and disclosure of important financial and

non-financial information.

During the period under review, 21 BoD members and 14 directors were added to the register of banks pursuant to Article 43 of Law No. 88 of the year 2003 promulgating the Law of the Central Bank, the Banking Sector and Money and in accordance with applicable fit and proper criteria.

In the light of Article 32/3 of the aforesaid Law which states that the Governor of the Central Bank, following consent of the Board of Directors, shall approve the statute of the bank, and any modification thereto, certain articles of the statutes of 2 banks were modified during the period under review.

Moreover, eighteen new branches of ten banks were added to the register of banks in accordance with the regulations set by the CBE that give due regard to the soundness of banks' financial positions, internal control systems, the efficiency of their information systems and capital adequacy to ensure that they can better face the risks arising from the expansion in their activities.

In light of the rules regulating the electronic payment services, four banks were licensed to offer some e-banking services during the period under review.

To organize dealing in the Forex market in Egypt, Forex dealers and money transfer companies operating in Egypt were subjected to off-site supervision, according to the Law of the Central Bank, Banking Sector and Money. In this respect, it is worthy to note that during the period under review,

- 37 - the CBE Governor issued Decision No. 77 for 2012 to give a license to a new exchange dealer company. Moreover, 7 branches of existing Forex dealers were registered, thus bringing their total number to 492 nationwide.

Moving to tourism services, the CBE - pursuant to the aforesaid Law - had already licensed shops in the customs areas at airports to sell in foreign currencies, alongside the Egyptian pound, with the aim of covering part of the State’s resources of foreign currencies and encouraging tourism. One new shop was granted this license, thus bringing the total number of licensed shops to 82 in the period under review. Also, the number of licensed shops in the free zones reached 27 shops at the end of the same period.

The CBE has been keen to support the “primary dealers system” established by virtue of the Minister of Finance’s Decree No. 480 for 2002, by taking all means possible for its success, in view of its positive impact on the government stock market. Within this context, 15 banks were licensed to engage in the underwriting of the primary issues of government securities and to actively trade thereon in the secondary market. The license shall be reviewed annually in light of banks' compliance with the regulations issued by the CBE Board in its Decision dated 6 June 2002.

As regards on-site supervision, the Central Bank made progress with its plan for the inspection of banks and exchange dealer companies, by implementing the international best practices and applying the concept of risk- based supervision. This concept demonstrates and analyzes the risks of banks and the measures taken to manage these risks, while ensuring the robustness and soundness of banks' financial positions. To this end, the inspection method was upgraded and inspection teams specializing in the issues of retail banking, market risks, information technology, and combating money laundering were formed. This helped in upgrading the risk management framework in a lot of banks, updating their IT systems, enhancing their internal supervision and control systems and paying heed to the quality of credit granting, thereby reducing the volume of non-performing loans at banks.

On the other hand, the Central Bank continues to play its supervisory role in monitoring banks (concerning their readiness to apply Basel II requirements) and following up banks with respect to money transfers abroad within the framework of the regulatory instructions issued by the CBE to maintain forex reserves.

- 38 - 2/2/3 - Overview of the Aggregate Financial Position of Banks The aggregate financial position of registered banks operating in Egypt (40 in number)* posted LE 1413.1 billion at end of Sept. 2012, up by LE 46.9 billion or 3.4 percent during July/Sept. 2012/2013 (against LE 26.4 billion and 2.1 percent).

On the liabilities side, more than half of the rise (51.8 percent) stemmed from the pickup in deposits at banks (by LE 24.3 billion or 2.4 percent), to register LE 1047.8 billion and 74.2 percent of the aggregate financial position of banks at end of Sept. 2012. Increases were also seen in banks’ equities (by LE 5.4 billion or 5.8 percent), as well as obligations to banks in Egypt (including the CBE) by LE 3.4 billion or 17.9 percent, and bonds and long-term loans (by LE 0.3 billion or 1.1 percent). In addition, other liabilities picked up by LE 15.7 billion or 11.7 percent. Conversely, obligations to banks abroad shrank by LE 1.6 billion or 10.8 percent, and provisions by LE 0.5 billion or 1.0 percent.

* After adding the Arab International Bank; given that only 39 banks are covered by the financial position data.

Banks' Liabilities & the Relative Importance of their Components (End of September)

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 20120

300

600

900

1200

1500LE bn

Equities Provisions Bonds & Long-term Loans

Obligations to Local Banks Obligations to Banks Abroad Total Deposits

Other Liabilities Total Liabilities-Right Scale

Growth Rate of Banks' Liabilities during July/Sept.

0.5

11.2

(9.6)

1.3

20.5

4.6

8.9

(10.8)

5.5

2.4

11.7

2.4

(71.8)

(0.1)

(5.4)(1.0)

19.8

1.1

Capital

Reserves

Provisions

Bonds & Long-term Loans

Obligations to Banks Abroad

Obligations to the CBE

Obligations to Local Banks

Total Deposits

Other Liabilities

%

2012/2013

2011/2012

- 39 -

On the assets side, banks'

investments in securities and treasury bills expanded by LE 23.5 billion or 4.2 percent (against LE 3.4 billion and 0.7 percent in the corresponding period), recording LE 578.8 billion or 41.0 percent of the aggregate financial position of banks at end of Sept. 2012. Likewise, lending and discount balances increased by LE 1.7 billion or 0.3 percent to LE 508.4 billion, thereby constituting 36.0 percent of banks' aggregate financial position. In addition, other assets augmented by LE 25.5 billion or 23.3 percent. On the other hand, balances with local banks retreated by LE 2.8 billion or 2.7 percent and so did balances with banks abroad by LE 2.3 billion worth or 3.1 percent.

Banks' Assets & the Relative Importance of their Components (End of September)

0%

20%

40%

60%

80%

100%

2008 2009 2010 2011 20120

300

600

900

1200

1500LE bn

Cash Securities & Investments Balances with Local BanksBalances with Banks Abroad Loan & Discount Balances Other AssetsTotal Assets-Right Scale

Growth Rate of Banks' Assets during July/Sept.

(3.0)

0.7

4.5

2.4

1.0

9.2

4.2

(3.1)

(6.3)

15.7

0.3

29.2

(14.2)

23.3

Cash

Securities & Investments

Balances with Banks Abroad

Balances at the CBE

Balances with Local Banks

Loan & Discount Balances

Other Assets

%

2012/2013

2011/2012

- 40 - The increase in banks'

investments in securities and bills was mostly ascribed to the rise in their investments in government bonds by LE 21.1 billion. This is besides the increase in their corporate equities by LE 2.8 billion, and their investments in foreign securities by LE 0.3 billion worth. However, their investments in non-government bonds fell by LE 0.5 billion and in treasury bills by LE 0.2 billion.

2/2/4 - Interbank Transactions

2/2/4/1 - Transactions with Banks Abroad

In Q1 2012/2013, net transactions of local banks with correspondents

abroad unfolded a decline in their net credit balances with banks abroad (by the equivalent of LE 0.7 billion or 1.2 percent) to stand at LE 60.4 billion worth at end of Sept. 2012 (against LE 68.8 billion worth at end of Sept. 2011). The decline was a dual effect of the decrease in both their balances with banks abroad and their obligations thereto, by the equivalent of LE 2.3 billion and LE 1.6 billion, in order.

Transactions with Banks Abroad (LE mn)

Change in July/Sept. End of 2011/2012 2012/2013

June 2011

Sept. 2011

June 2012

Sept. 2012 Value % Value %

Net Position 80912 68757 61113 60395 (12155) (15.0) (718) (1.2)

Balances with banks abroad 96080 82467 75905 73582 (13613) (14.2) (2323) (3.1)

Obligations to banks abroad 15168 13710 14792 13187 (1458) (9.6) (1605) (10.9)

Relative Structure of Banks' Portfolio Investment

3.45.71.1

51.2

38.5

3.5

49.1

0.96.0

40.6

0

10

20

30

40

50

60

TreasuryBills

Gov.Bonds

Non-gov.Bonds

Corp.Equities

ForeignSecurities

%

June 2012Sept. 2012

- 41 -

2/2/4/2 - Interbank Transactions in Egypt

The volume of transactions among banks in Egypt in the interbank market, in terms of deposits, increased by LE 2.7 billion or 15.7 percent in the reporting period (against LE 0.5 billion or 2.4 percent in the period of comparison), bringing total deposits to LE 19.9 billion at end of Sept. 2012. The rise was an outcome of the hike in local and foreign currency deposits by LE 2.2 billion and LE 0.5 billion worth, respectively. 2/2/5 - Deposits

During Q1 2012/2013, banks'

deposits (including government deposits) grew by LE 24.3 billion or 2.4 percent (against LE 12.7 billion and 1.3 percent in the corresponding period), standing at LE 1047.8 billion or 74.2 percent of banks' aggregate financial position at end of Sept. 2012. Local currency deposits went up by LE 24.7 billion or 3.2 percent to post LE 802.5 billion (76.6 percent or more than three quarters of deposits at banks) at end of Sept. 2012. On the other hand, deposits in foreign currencies fell by LE 0.4 billion worth or 0.2 percent, to LE 245.3 billion worth at end of Sept. 2012.

Deposits at Banks by Sector

(LE mn) Local Currency Foreign Currencies End of June June 2012 Sept. 2012 June 2012 Sept. 2012 Total 777806 802519 245711 245296 Government sector 58930 60185 55731 52917 Public business sector 24843 21776 8812 9208 Private business sector 92697 92940 64496 64441 Household sector 597459 624180 112859 114742 External sector 3877 3438 3813 3988

Deposits in the Interbank Money Market

9.3

11.5

7.9 8.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

June 2012 Sept. 2012

LE bn

Local Currency Foreign Currencies

Change in Deposits by Currency during July/September

13.2

24.7

(0.5) (0.4)-505

1015202530

2011/2012 2012/2013

LE bn

Local Currency Foreign Currencies

- 42 - The pickup in the local currency deposits of the household sector was

higher than the increase witnessed in total LE deposits. In figures, its deposits in local currency scaled up by LE 26.7 billion or 4.5 percent to LE 624.2 billion, thereby representing 77.8 percent of the total LE deposits at end of Sept. 2012. Moreover, the deposits of the government sector rose by LE 1.3 billion or 2.1 percent, and those of the private business sector by LE 0.2 billion. Conversely, the deposits of the public business sector declined by LE 3.1 billion or 12.3 percent, and those of the external sector by LE 0.4 billion. Turning to foreign currency deposits, their fall was attributed to the retreat in the deposits of the government sector by the equivalent of LE 2.8 billion. The decrease was held back by the rise in the deposits of the household sector by LE 1.9 billion worth to register LE 114.7 billion worth or 46.8 percent of the total deposits in foreign currencies at end of Sept. 2012. Moreover, the deposits of the public business sector moved up by LE 0.4 billion worth and so did those of the external sector by LE 0.2 billion worth.

2/2/6 - Lending Activity

Banks expanded their lending activity by only LE 1.7 billion or 0.3 percent

in July/Sept. 2012. Concurrently, total implemented investments rolled back by 2.9 percent (against LE 4.8 billion or 1.0 percent in the same period a year earlier). As a result, the total lending balances posted LE 508.4 billion representing 36.0 percent of total assets and 48.5 percent of total deposits at end of Sept. 2012.

Rate of Change in Deposits by Sector during July/September

(15)(10)(5)05

10152025

2011/2012 2012/2013 2011/2012 2012/2013

Local Currency Foreign Currencies%

Government Sector Public Business Sector Private Business SectorHousehold Sector Foreign Sector

- 43 -

Change in Bank Loans by Sector (LE mn)

2011/2012 2012/2013 Local

Currency Foreign

Currencies Local

Currency Foreign

Currencies

Total 5282 (465) 1083 605

Government sector (535) (1240) (1156)

2579

Public business sector 1912 (15) 1481

(309)

Private business sector 516 1098 (2436)

472

Household sector 3428 (522) 3163

(69)

External sector (39) 214 31 (2068)

The lending and discount balances picked up by LE 1.1 billion or 0.3

percent to LE 365.3 billion at the end of Sept. 2012. The increase went to the household and the public business sectors. Loans received by the household sector inched up by LE 3.2 billion or 2.9 percent and the public business sector by LE 1.5 billion or 4.7 percent. In contrast, loans to the private business sector decreased by LE 2.4 billion and to the government sector by LE 1.2 billion. As for loan and discount balances in foreign currencies, they went up by only LE 0.6 billion worth or 0.4 percent to stand at LE 143.2 billion worth at end of Sept. 2012. The rise reflected the increase in the share of the government sector by LE 2.6 billion worth or 13.6 percent and of the private business sector by LE 0.5 billion worth. However, that rise was held back by the decline in loans to the external sector by LE 2.1 billion worth, to the public business sector by LE 0.3 billion worth and to the household sector by LE 0.1 billion worth.

The relative distribution of loans by economic activity indicates that the manufacturing sector was the major recipient, with a share of 36.7 percent (in local and foreign currencies) at end of Sept. 2012. The services sector came next with 26.8 percent, followed by the unclassified sectors including the household (25.5 percent), trade (9.8 percent), and agriculture (only 1.2 percent).

Credit Facilities by Economic Activity At End of September 2012

0

50

100

150

200

AgricultureManufacturing

Trade ServicesUnclassified

LE bn

Local Currency Foreign Currencies

- 44 -

At end of Sept. 2012, loans and advances (excluding discounts) provided by banks by maturity registered LE 503.4 billion, with a slight increase of LE 0.2 billion in the reporting period. The increase was an outcome of the rise in long-term loans (more than one year) by LE 4.5 billion or 1.7 percent (due to the growth in local currency loans by LE 6.1 billion and the fall in foreign currency loans by the equivalent of LE 1.6 billion). It also resulted from the drop in short-term loans (one year or less) by LE 4.3 billion or 1.8 percent as an effect of the contraction in local currency loans by LE 5.2 billion and the expansion in foreign currency loans by LE 0.9 billion worth.

Loans & Advances by Banks Excluding Discounts (End of)

0

40

80

120

160

200

240

June 2012 Sept. 2012 June 2012 Sept. 2012

One Year or Less Over One Year LE bn

Local Currency Foreign Currencies

- 45 -

3-Non-Banking Financial Sector∗ 3/1- Regulatory and Legislative Developments

During July/Sept. 2012/2013, Presidential Decree No. 181 of 2012 was

issued on 19/9/2012 deeming the Prime Minister as the minister responsible for enforcing the provisions of Law No. 10 of 2009 for Regulating Non-Banking Financial Markets and Instruments. On his part, the Prime Minister issued Decree No. 991 of 2012 on 27/9/2012 authorizing the Minister of Investment to assume the powers and duties of the minister responsible for enforcing the provisions of the said Law as of 3/8/2012.

Within the framework of revising the rules of listing securities issued by

small and medium enterprises (SMEs), Decision No. 49 of 2012 was issued by EFSA's BOD on 12/7/2012, amending Decision No. 81 of 2011 regarding these rules. According to these amendments, a new item (No. 9) was added to Article 2 of the aforementioned Decision, clarifying that the shares to be listed must not be issued by companies operating in non-banking financial markets.

Aiming to promote trading on the Egyptian Exchange in a manner that

better reflects the market’s supply and demand, EFSA's Chairman approved on 14/8/2012 the new rules for holding the discovery session at the Exchange proposed by its BOD. The said rules aim at modifying the mechanism of calculating the price of securities in the discovery session as an opening price for securities in the trading session. The rules state that changing the discovery price of a security requires the participation of at least 25 percent of the total number of brokerage companies that trade on the security on the demand side and their equivalent on the supply side during the last three months, with a minimum of five companies from each side.

It is worth mentioning that in March 2011, EFSA suspended the discovery

session within the context of other precautionary measures that accompanied the resumption of trading at the Exchange on 23/3/2011. This came after a trading halt for 55 consecutive days amid the events of January Revolution.

Moreover, on 28/8/2012, EFSA's Chairman approved the amendments

proposed by the EGX's BOD to trading rules that are related to the closing price determinants. The said rules aim at reducing the tangible fluctuations in the prices of securities that ensue from scant trading. According to the new ∗ Source: EFSA, and EGX's monthly reports.

- 46 - amendments, the amount of shares set for the closing price shall not be less than the equivalent of 0.5 percent of the daily average of the trading value of each share during the last three months, provided that the value of these shares shall not be less than ten thousand Egyptian pounds or their equivalent in foreign currencies, without prejudice to the provisions of Article 97 of the Executive Regulations of the Capital Market Law No. 95 of 1992. In addition, the effect of private transactions shall be excluded when calculating the average of the said trading. These averages shall be revised and recalculated every three months. The previous rules shall apply to small and medium enterprises listed on the tables of the Egyptian Exchange. Also, EFSA addressed the Exchange to modify the technical systems of trading to reflect the above-mentioned amendments and upon finishing this modification, EFSA shall be notified to set a date for putting these rules into effect.

During the period under review, EFSA's Chairman issued Decision No.

677 of 2012 on 23/9/2012 amending some provisions of EFSA’s Chairman Decision No 41 of 2007 regarding the regulations of registering financial advisors with EFSA.

As part of its efforts to provide medium- and long-term financing

instruments for small and medium enterprises, and to provide access to various sources of finance to promote these enterprises and increase their share in economic activity, EFSA approved on 26/9/2012 the private placement memorandum of the mutual fund established for developing small and medium enterprises, with a total value of LE 250 million. The said Fund is a closed fund whose certificates are offered to eligible investors through a private placement for equity participation in small and medium enterprises. Investment in the capital of this fund is confined to direct investment (medium - and long-term) in the capital of small and medium enterprises through capital increases, equity purchases, or the establishment of companies which practise their main activity in Egypt. The main sectors suggested for undertaking the Fund's activity include communications and information technology, as well as services, agricultural and industrial activities.

On the other hand, EGX made a semi-annual review on its benchmark

index (EGX 30) in July 2012. Accordingly, EGX announced the elimination of six companies from the index and the addition of six others. Also, some companies listed in the indices of EGX 70, EGX 100 and EGX 20 Capped and sectoral indices were changed. This procedure was effective as of the 1st of August 2012. Also, a periodical annual review was conducted on S&P/EGX ESG index and some listed companies were changed.

- 47 - Aiming to develop the work system of the stock market, EGX started as

of August 2012 the actual operation of the Millennium Surveillance system. The system will help EGX better oversee the daily trading and all forms of abuse and violations of the regulatory rules of trading.

3/2- Stock Market

Turning to the performance of the EGX, all price indices showed an

increase in July/Sept. 2012/2013. In detail, EGX 30 rose by 23.6 percent, to 5821.8 points at end of September 2012 (against 4708.6 points at end of June 2012). Likewise, EGX 20 Capped increased 26.1 percent recording 6873.7 points (against 5452.0 points). EGX 70 moved up, as well, by 33.8 percent to 564.5 points (against 422.0 points), and so did EGX 100 by 26.9 percent to 925.5 points (from 729.5 points).

Sectoral indicators

In July/Sept. 2012/13, all sectoral indicators increased. Basic resources recorded the highest growth, with a pickup of 79.8 percent, followed by banks (38.9 percent), and real estate (37.1 percent). Chemicals came last with a rise of 15.0 percent.

The Benchmark EGX 30 Index

50750

1450215028503550425049505650635070507750

June

2010 Ju

lyAug

.Sep

t. Oct.

Nov

. Dec

.

Jan.

2011 Feb

.Mar. Apr. May

June

Ju

lyAug

.Sep

t. Oct.

Nov

. Dec

.

Jan.

2012 Feb

.Mar. Apr. May

June Ju

lyAug

.Sep

t.

PointClosing of the Egyptian

Exchange in the wake of January 25 Revolution

- 48 -

Sector

Sectoral Indicator at End of June 2012

Sectoral Indicator at End of Sept. 2012

Change (%)

July/Sept. 2012/13

Basic resources 319.5 574.4 79.8 Banks 1236.1 1716.5 38.9 Real estate 669.3 917.6 37.1 Personal and household products 378.6 511.2 35.0 Travel and leisure 245.0 305.3 24.6 Financial services (exc.banks) 418.5 513.3 22.7 Food and beverages 660.2 802.7 21.6 Healthcare and pharmaceuticals 1146.5 1362.0 18.8 Services, industrial goods and cars 927.2 1094.5 18.0 Construction and building materials 1354.0 1582.4 16.9 Communications 386.2 450.4 16.6 Chemicals 701.4 806.8 15.0

The primary market: the number of new issues approved by EFSA during July/Sept. 2012/2013 reached 724, at a total value of LE 14.6 billion (against 738 issues, at a total value of LE 8.3 billion in the corresponding period a year earlier). Issues for new businesses reached 499 in number (68.9 percent of total issues), at a value of LE 1.8 billion. The number of issues for capital increases reached 225, with a total value of LE 12.8 billion (87.5 percent of total issues).

The listing activity on the EGX showed that the number of listed

companies rose to 213 at end of September 2012 (from 212 at end of June 2012). The nominal capital of these companies mounted by 0.4 percent to LE 150.7 billion (from LE 150.1 billion). Also, their market capitalization climbed by 19.4 percent to LE 405.7 billion (against LE 399.8 billion), on the back of the rise in the prices of most shares traded on the EGX.

The value of issued and listed bonds surged by LE 25.2 billion or 8.8

percent in July/Sept. 2012/2013, posting LE 310.5 billion at end of September 2012 (against LE 285.3 billion at end of June 2012). This was attributed to the rise of LE 26.0 billion in the value of Egyptian treasury bonds (primary dealers), to LE 296.6 billion or 95.5 percent of the total value of listed bonds at end of September 2012. In the meantime, corporate bonds fell by LE 0.4 billion.

The secondary market: the three indicators of the secondary market

(number of transactions, number of traded securities and their value) showed an increase. In detail, the number of transactions moved up by 371 thousand or 25.6

- 49 - percent to 1820 thousand, and so did the number of traded securities (shares and bonds) by 6938 million or 141.5 percent compared with the corresponding period, posting 11842 million papers. Their value increased, as well, by LE 18.8 billion or 58.6 percent, to LE 50.8 billion.

Share transactions accounted for the bulk of trading on the EGX (81.4 percent in the period under review, against 82.1 percent in the corresponding period of the previous FY). Trading in bonds made up the remaining 18.6 percent of the total (against 17.9 percent).

Trading in Securities

July/September 2011/12 2012/13 No. of Transactions (000s) 1449 1820 A- Shares, bonds and mutual funds’ certificates (listed) 1429 1801 B- Shares, bonds and mutual funds’ certificates (unlisted) 18 10 C- Small and Medium Enterprises Market (NILEX)* 2 9 No. of Traded Securities (mn) 4904 11842 A- Shares, bonds and mutual funds’ certificates (listed) 4610 11472 B- Shares, bonds and mutual funds’ certificates (unlisted) 283 347 C- Small and Medium Enterprises Market (NILEX)* 11 23 Value of Transactions (LE mn) 32050 50832 A- Shares, bonds and mutual funds’ certificates (listed) 29201 43805 B- Shares, bonds and mutual funds’ certificates (unlisted) 2806 6954 C- Small and Medium Enterprises Market (NILEX)* 43 73

Source: EFSA- monthly reports of the EGX. *Trading on NILEX started on June 3, 2010.

Turning to the market of small and medium enterprises (NILEX), the

number of listed companies reached 22, and the market capitalization of listed shares on NILEX amounted to LE 1.3 billion at end of September 2012. Traded securities amounted to 23 million papers, through 9434 transactions, with a total value of LE 73 million.

Investors' Transactions

Foreigners' transactions on EGX stepped up by 18.3 percent during

July/Sept. 2012/2013 compared with the corresponding period of the preceding year, scoring LE 17.7 billion (against LE 14.9 billion). Their transactions resulted in net sales of LE 1.2 billion (against net purchases of LE 1.7 billion in the period of comparison).

- 50 - Egyptians' trading on EGX accounted for 73.5 percent of total

transactions in July/Sept. of FY 2012/2013. On the other hand, dealings of non-Arab foreigners represented 18.3 percent, while those of Arab investors made up 8.2 percent.

3/3- Mutual Funds

The number of mutual funds increased to 85 at end of September 2012 (83 open-end and 2 close-end), from 77 funds at end of September 2011 (74 open-end and 3 close-end).

Foreign Investors' Transactions during July/Sept.

-3

3

8

13

18

2011/2012 2012/2013

PurchasesSalesNet

LE bn

Egyptian, Foreign & Arab Investors’ Transactions on the Stock Exchange during July/Sept. 2012/2013

Foreigners (Excl. Arabs)

18.3%

Arabs 8.2%

Egyptians 73.5%

- 51 -

4- Public Finance and Domestic Public Debt 4/1- Consolidated Fiscal Operations of the General Government

In the light of the Ministry of Finance data on the state budget for FY 2012/2013, total expenditures are projected to rise by LE 43.2 billion or 8.8 percent above previous year's estimates, to record LE 533.8 billion, with an increase of LE 62.8 billion or 13.3 percent above the actual figure of the previous FY. Likewise, budgeted revenues surged by LE 43.8 billion or 12.5 percent compared with the estimates of the previous FY, thus exceeding the actual figure of the previous FY by LE 89.9 billion or 29.6 percent, totaling LE 393.5 billion.

The budget for FY 2012/2013 has been outlined within the framework of a number of reform measures and decisions related to expenditures and revenues. On the expenditures side, these measures focused on the continued rationalization of all items of government spending, restructuring of subsidies for petroleum products, prevention of subsidy leakage and targeting of the eligible beneficiaries in all areas, and elimination of the overstock of merchandise goods. Moreover, measures were taken to expand infrastructure investments by encouraging the participation of the private sector, in an endeavor to alleviate the burdens on the budget and devise a mechanism to satisfy the increasing social needs for infrastructure services. On the revenues side, a high priority was given to widening the taxpayers’ base, combating tax evasion, and overhauling the structure of customs duties to reduce distortions. In parallel, actions were taken to shift to the value-added tax system within three years, and to issue new accounting rules for small enterprises to ensure their compliance with the tax system and prevent them from tax evasion. Furthermore, 20 percent of the monthly revenues of funds and private accounts are to be delivered to the Ministry of Finance during the present FY, in order to finance projects aimed at creating new job opportunities for youth and reducing unemployment. Moreover, instructions were given to move the financial accounts of those funds from commercial banks to the consolidated fiscal account, in order to tighten supervision over those funds.

Hereunder are the estimates of the consolidated fiscal operations of the

general government in FY 2012/2013, and a follow-up of their execution during the first quarter of the year:

- 52 -

4/1/1- Estimates of the Consolidated Fiscal Operations of the General Government

The Budget Sector

According to the estimates for FY 2012/2013, the budgeted public revenues totaled LE 393.5 billion (22.4 percent of GDP), with a rise of some LE 89.9 billion or 29.6 percent above the actual figure of FY 2011/2012. Tax revenues were estimated at some LE 266.9 billion (67.8 percent of total estimated revenues), of which taxes on income and business profits amounted to some LE 121.6 billion (45.6 percent of total tax revenues). Tax proceeds from the petroleum sector were estimated at LE 45.8 billion (37.7 percent of taxes on income, business profits and the Suez Canal Authority). Tax revenues on goods and services are expected to record LE 100.7 billion (37.7 percent of total tax revenues). Meanwhile, customs receipts and property taxes are projected to reach LE 20.8 billion (7.8 percent of the total tax revenues) and LE 19.4 billion (7.3 percent).

Other revenues, mainly property income, proceeds of selling goods and

services, investment finance, and other miscellaneous taxes are expected to record LE 117.6 billion or 29.9 percent of total revenues. Moreover, current and capital grants were estimated at LE 9.0 billion for FY 2012/2013.

On the other hand, total expenditures are expected to rise by LE 62.8

billion or 13.3 percent, to stand at LE 533.8 billion (30.4 percent of total GDP), compared to the actual figure in the previous FY. Wages and compensations of public civil servants are expected to cost LE 136.6 billion or 25.6 percent of total expenditures (including all periodical allowances and incentives, along with the cost of reforming the pay structure of the employees of the administrative system of the state). Interest payments on external and domestic public debt were estimated at LE 133.6 billion, making up 25.0 percent of total expenditures. Subsidy allocations were estimated at LE 113.0 billion or 21.2 percent of total expenditures, of which LE 70.0 billion (13.1 percent of the total) were earmarked for oil subsidies and LE 26.6 billion (5.0 percent) for commodity subsidies to counterbalance the higher world prices; while an amount of LE 16.4 billion was set aside for other subsidies. Moreover, grants, social benefits and other expenditures were estimated at some LE 32.9 billion, and defense outlays at about LE 27.3 billion.

- 53 - Investments of the administrative system, local administration and service

authorities were projected to post LE 55.6 billion (up by 54.8 percent over the actual figure of the preceding FY), mostly earmarked for the projects of the key sectors, in order to spur growth and reverse the economic slowdown.

The Main Components of the Budget Sector

(LE mn) 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 Actual Actual Actual Actual Actual Estimate Total Revenues 221404 282505 268114 265286 303622 393476 Total Expenditures 282290 351500 365987 401866 470992 533785 Cash Deficit 60886 68995 97873 136580 167370 140309 Net Acquisition of Financial Assets 236 2831 165 -2120 -665 -5314 Overall Deficit 61122 71826 98038 134460 166705 134995 Primary Deficit 10594 19016 25705 49383 62264 1383

Against this background, the cash fiscal deficit in FY 2012/2013 was estimated at LE 140.3 billion (8.0 percent of GDP), whereas the overall deficit was projected to reach LE 135.0 billion (7.7 percent of GDP). Meanwhile, the primary budget deficit was expected to register LE 1.4 billion, thus reflecting the heavy burden of interest payments of domestic and external public debt (LE 133.6 billion as already mentioned) and their effect on the budget deficit, given that interest payments on domestic public debt accounted for LE 127.5 billion (23.9 percent of total government expenditure).

Ratios of Estimated Expenditures, Revenues & Overall Deficit/GDP

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013

Revenues Expenditures Overall Deficit

%

Actual Estimates

- 54 -

Budget Sector, NIB and SIFs

As for the fiscal operations of the budget sector, SIFs and NIB, revenues and expenditures were expected to total LE 445.6 billion and LE 566.0 billion, respectively. Thus, the cash deficit was estimated at LE 120.4 billion (6.8 percent of GDP), and the overall deficit at LE 121.1 billion (6.9 percent of GDP). 4/1/2- Follow-up of the Execution of the Consolidated Fiscal

Operations of the General Government

The Budget Sector

According to the preliminary data of the Ministry of Finance regarding the follow-up on the actual figures of the budget sector during the first quarter of FY 2012/2013, collected revenues totaled some LE 50.7 billion or 2.9 percent of GDP. Meanwhile, expenditures totaled LE 101.4 billion or 5.8 percent of GDP. Therefore, the overall budget deficit posted LE 50.8 billion (2.9 percent of GDP) in the period under review.

Public revenues increased by LE 6.8 billion or 15.6 percent during the period under review (compared with LE 7.0 billion or 19.0 percent in the period of comparison).

The pickup in revenues emanated

from the surge in tax revenues by LE 10.3 billion or 34.6 percent above the period of comparison, thus exceeding the rise in total revenues by 51.0 percent. The rise in tax revenues came on the back of the pickup in the proceeds from taxes on income and profits by LE 7.3 billion (71.2 percent from the CBE), while the remainder

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013

Revenues Expenditures Overall Deficit

Ratios of Expenditures, Revenues & overall Deficit/GDP% (July/Sept.)

79.2

12.1

68.162.3 80.2

76.3

18.810.3

14.1 15.1

0.010.020.030.040.050.060.070.080.090.0

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013

Tax Revenues Property Income

(July/Sept.)%

Ratios of Tax Revenues & Property Income/Total Public Revenues

- 55 - came from the other major items, specifically taxes on property and on goods and services, customs receipts, and other miscellaneous tax items. Meanwhile, the proceeds from property income shrank by LE 2.1 billion to LE 6.1 billion, as a result of the decreased receipts from the CBE and the Suez Canal Authority.

Grants from foreign governments also rolled back by LE 3.1 billion during

the period. The follow-up data on the actual

implementation also showed that total expenditures increased by LE 16.9 billion or 20.1 percent, standing at LE 101.4 billion (5.8 percent of GDP) in July/Sept. 2011/2012, compared with the same period of the previous FY.

A substantial part of the rise in expenditures (44.0 percent) was attributed to

the surge in the interest payments of public debt (LE 7.5 billion or 30.9 percent), to score LE 31.6 billion (32.3 percent of current government spending). Hence, the state budget was overburdened with these payments. Expenditure on wages and compensations for employees also increased by LE 5.2 billion or 18.9 percent, standing at LE 32.4 billion. In other words, they swallowed the major part of 63.9 percent of revenues and made up 33.1 percent of current government spending.

Also, subsidies, grants and social benefits scaled up by LE 5.2 billion or

30.3 percent, to LE 22.2 billion. The implemented investments stepped down by LE 1.2 billion during the

reporting period, scoring LE 3.5 billion. Other miscellaneous expenditures also fell by LE 171 million.

In the light of the above developments, the cash deficit of the budget sector

recorded LE 50.7 billion during the reporting period, while the overall deficit posted LE 50.8 billion (2.9 percent of GDP).

Budget Sector, NIB and SIFs

Adding the fiscal operations of the NIB and SIFs to those of the budget

sector, revenues should total LE 62.2 billion (3.6 percent of GDP), up by 22.8 percent.

31.1

16.3

18.6

28.626.8

27.6

16.5

11.9

10.714.2

-5.0

5.0

15.0

25.0

35.0

2008/2009 2009/2010 2010/2011 2011/2012 2012/2013

Interest Subsidies

% Subsidies & Interest Payments / Total Expenditures

(July / Sept.)

- 56 -

Execution of the Consolidated Fiscal Operations of the General Government

(Budget Sector, NIB and SIFs) (Total Revenues)

(LE bn) July/Sept. 2012/2013

Budget Sector

Relative Structure

%

Execution Ratio/Total

Estimate for the

Year %

Budget Sector, NIB & SIFs

Relative Structure

%

Execution Ratio/Total

Estimate for the

Year % Total Revenues 50.7 100.0 12.9 62.2 100.0 14.0

Tax Revenues 40.2 79.2 15.0 40.2 64.5 15.0 Taxes on Income and Profits 15.6 30.8 12.8 15.6 25.1 12.8

From EGPC 0.0 0.0 0.0 0.0 0.0 0.0 From SCA 2.8 5.4 19.5 2.8 4.4 19.5 From CBE 5.2 10.3 5.2 8.3 Other entities 2.7 5.3 8.6 2.7 4.4 8.6 Payable by individuals 4.9 9.8 16.5 4.9 8.0 16.5

Taxes on Property 3.9 7.6 20.0 3.9 6.2 20.0 Taxes on Goods and Services 17.0 33.5 16.9 17.0 27.3 16.9 Taxes on International Trade (customs) 3.4 6.8 16.6 3.4 5.5 16.6 Other Taxes 0.3 0.5 5.5 0.3 0.4 5.5

Grants -0.2 -0.3 -1.8 -0.2 -0.3 -1.8 Other Revenues 10.7 21.1 9.1 22.2 35.8 13.1

Property Income 6.1 12.1 7.8 8.1 13.0 9.2 Selling Proceeds of Goods and Services 3.5 6.8 20.2 3.4 5.6 20.2 Financial Investments 0.3 0.6 3.2 0.3 0.5 3.2 Other 0.8 1.6 6.4 10.4 16.7 19.1

Source: Ministry of Finance. Percentages are calculated in terms of LE million.

By adding the fiscal operations of SIFs and NIB to those of the budget

sector, total expenditures should scale up by 14.5 percent, to LE 116.1 billion (6.6 percent of GDP).

- 57 -

Execution of the Consolidated Fiscal Operations of the General Government

(Budget Sector, NIB and SIFs) (Total Expenditures)

(LE bn) July/Sept. 2012/2013

Budget Sector

Relative Structure

%

Execution Ratio/Total

Estimate for the Year %

Budget Sector, NIB & SIFs

Relative Structure

%

Execution Ratio/Total

Estimate for the Year %

Total Expenditures 101.4 100.0 19.0 116.0 100.0 20.5 Wages and Compensations of Employees 32.4 32.0 23.7 32.9 28.3 23.7 Purchases of Goods and Services 3.8 3.7 13.2 3.8 3.3 13.2 Interest 31.6 31.2 23.6 29.1 25.1 24.5 Subsidies, Grants and Social Benefits 22.2 21.9 15.2 38.8 33.4 20.4

Subsidies 16.5 16.3 14.6 16.5 14.2 14.6 Grants 0.6 0.6 10.3 0.6 0.5 10.3 Social Benefits 4.8 4.8 20.2 21.4 18.4 31.4 Others 0.3 0.2 9.4 0.3 0.3 9.4

Other Expenditures 7.8 7.7 23.4 7.8 6.8 23.4 Purchases of Non-Financial Assets (Investments) 3.6 3.5 6.4 3.6 3.1 6.4 Source: Ministry of Finance. Percentages are calculated in terms of LE million.

The cash deficit of the consolidated fiscal operations of the general government in the relevant period amounted to LE 53.8 billion. By adding the net acquisition of financial assets (LE 4.7 billion) to the cash deficit, the overall deficit should post LE 58.5 billion or 3.3 percent of GDP, constituting 48.3 percent of the overall deficit estimated for the whole year.

- 58 -

Execution of the Consolidated Fiscal Operations of the General Government

(Budget Sector, NIB and SIFs) (Cash and Overall Deficit/Surplus and Financing Sources)

(LE bn)

July/Sept. 2012/2013

Budget Sector

Relative Structure

%

Execution Ratio/Total

Estimate for the Year %

Relative Structure

%

Total Expenditures 50.7 62.2 Total Revenues 101.4 116.0 Cash Deficit 50.7 53.8 Net Acquisition of Financial assets 0.1 4.7 Overall Deficit 50.8 58.5 Finance Sources 50.8 100.0 58.5 100.0 Domestic Finance 87.9 173.3 71.6 122.4

Banking Finance 51.5 101.5 50.0 85.5 Non-Banking Finance 36.4 71.7 21.6 36.9

Blocked Account Used in Amortizing Part of the CBE Bonds 0.0 0.0 0.0 0.0 External Borrowings -1.0 -2.0 -1.0 -1.7 Arrears 0.0 0.0 0.0 0.0 Other -0.1 -0.3 23.9 40.8 Financing Effects for Eliminations 0.0 0.0 0.0 0.0 Revaluation Differences 0.4 0.8 0.4 0.7 Net Privatization Proceeds 0.0 0.0 0.0 0.0 The Difference between the TBs Face and Present Value -26.5 -52.2 -26.5 -45.3 Reclassification Differences 0.0 0.0 0.0 0.0 Unclassified -9.9 -19.5 -9.9 -16.9 Source: Ministry of Finance. Percentages are calculated in terms of LE million. Less than LE 1 million.

- 59 -

4/2- Domestic Public Debt

At end of September 2012, domestic public debt amounted to LE 1331.1 billion, or 74.9 percent of GDP at current market prices, up by LE 93.0 billion or 7.5 percent during July/September 2012/2013. It is to be noted that the balance of domestic public debt equals the sum of net domestic government debt, public economic authorities' debt and debt of the National Investment Bank (NIB), minus the intra-debt of public economic authorities and the government to NIB.

4/2/1- Debt of the Government (Net)

Net government domestic debt registered LE 1079.6 billion (60.7

percent of GDP) at end of September 2012, up by LE 89.1 billion or 9.0 percent in July/September 2012/2013. The rise was a confluence of the LE 45.5 billion increase in the balances of treasury bonds and bills, and the LE 31.7 billion decline in the net credit position of the government at the banking system (as government loans grew by LE 27.1 billion and its deposits dropped by LE 4.6 billion, respectively). Add to this the increase in government borrowing from other local entities by LE 11.7 billion and the rise of the issued Masri Dollar Certificate by LE 0.4 billion. In the meantime, credit facilities from the SIFs decreased by LE 0.2 billion.

1079.6

66.4

252.2

-67.1

1331.1

-200 0 200 400 600 800 1000 1200 1400 1600

Net Domestic Debt ofGovernment

Net Debt of EconomicAuthorities

NIB Debt (Net)

Intra-Debt

Gross Domestic Debt

Gross Domestic Debt at End of Sept. 2012 (LE bn)

- 60 -

Domestic Debt of the Government (Net) (LE bn)

June 2012 Sept. 2012

Balances at End of Value % Value %

Change + (-)

July/Sept. 2012/2013

Government Domestic Debt (Net) 990.5 100.0 1079.6 100.0 89.1 - Balances of Bonds and Bills* 1078.2 108.9 1123.7 104.1 45.5

• Bonds and notes, of which: 669.6 67.6 706.7 65.5 37.1 Tradable on the exchanges 390.8 39.5 300.5 27.8 (90.3)

• Treasury bills 408.6 41.3 417.0 38.6 8.4 - Borrowing from Other Entities 13.0 1.3 24.7 2.3 11.7 - Credit Facilities from SIFs 1.7 0.2 1.5 0.1 (0.2) - Masri Dollar Certificate 0.2 0.0 0.6 0.1 0.4 - Net Balances at the Banking System -102.6 -10.4 -70.9 -6.6 31.7

• Credit facilities 62.2 6.2 89.3 8.3 27.1 • Deposits (-) 164.8 16.6 160.2 14.9 (4.6)

Net Government Domestic Debt/GDP (%) 64.2 60.7

Source: Ministry of Finance, CBE and NIB. Ratios are calculated in terms of LE million. * Including treasury bonds; housing bonds; bonds denominated in foreign currencies with public commercial

banks; the 5 percent ratio retained from profits of corporations subject to Law No. 97 for 1983 for the purchase of government bonds; holdings of resident financial institutions in Egypt (the banking system and insurance sector) of bonds floated abroad; and the SIFs’ bonds against the transfer of NIB debt to the Public Treasury.

The LE 45.5 billion rise in the balance of government bonds and bills was

an outcome of: A- The pickup in the balance of government bonds by LE 37.1 billion, to LE

706.7 billion at end of September 2012, as a result of:

1- The LE 26.0 billion rise in the balance of Egyptian treasury bonds in the reporting period, due to:

- The issuance of the 70th tranche of three-year bonds on 3 July 2012, at a

value of LE 2.0 billion and an annual interest rate of 16.15 percent. Afterwards, the value of this tranche was increased by LE 13.0 billion (LE 4.0 billion in July 2012, LE 5.0 billion in August and LE 4.0 billion in September) on the same conditions of issuance, bringing its total value to LE 15.0 billion.

- 61 -

- The issuance of the 71st tranche of five-year bonds on 14 August 2012, at a value of LE 2.0 billion, and an annual interest rate of 16.58 percent. The value of this tranche was then increased by LE 3.5 billion (LE 0.5 billion in August 2012 and LE 3.0 billion in September) on the same conditions of issuance, bringing its total value to LE 5.5 billion.

- The issuance of the 72nd tranche of seven-year bonds on 21 August 2012,

at a value of LE 1.0 billion, and an annual interest rate of 16.90 percent. The value of this tranche was increased by LE 3.0 billion in September 2012 on the same conditions of issuance, raising its total value to LE 4.0 billion.

- The issuance of the 73rd tranche of two-year bonds on 18 September 2012,

at a value of LE 1.0 billion, and a variable interest rate of 15.454 percent per annum.

- Raising the value of the 67th tranche of the seven-year bonds issued earlier

on 3 April 2012 with an annual interest rate of 16.85 percent, by LE 4.5 billion in July 2012 on the same conditions of issuance, thereby bringing its total value to LE 10.0 billion.

- Increasing the value of the 68th tranche of the ten-year bonds issued on 3

April 2012 with an annual interest rate of 17.0 percent, by LE 5.0 billion (LE 1.9 billion in July 2012, LE 1.1 billion in August, and LE 2.0 billion in September) on the same conditions of issuance, bringing its total value to LE 9.0 billion.

- Raising the value of the 69th tranche of the five-year bonds issued on 10

April 2012 with an annual interest rate of 16.55 percent, by LE 3.0 billion in July 2012 on the same conditions of issuance, and in turn its total value amounted to LE 10.0 billion.

- The redemption of Egyptian treasury bonds in the amount of LE 12.0

billion (the 43rd tranche on 12 August 2012, at a value of LE 6.0 billion and the 18th tranche on 20 September 2012, at a value of LE 6.0 billion).

2- The increase in the balance of SIFs bonds by LE 15.4 billion, as a result of

issuing new bonds on 1/7/2012 (representing part of SIFs’ claims on the Ministry of Finance).

- 62 - 3- The decrease of LE 4.3 billion in the balance of bonds floated abroad (in

both LE and US dollar), after the redemption of LE bonds in July 2012.

B- The rise of the outstanding balance of treasury bills by LE 8.4 billion at end of September 2012, to stand at LE 417.0 billion, as a result of:

- The issuance of 363-day TBs in euro on 29 August 2012, at a value of LE

4.0 billion worth. - The rise of LE 0.2 billion worth in the outstanding balance of public

treasury bills in US dollar, due to the change in exchange rates, bringing their balance to a total of LE 35.4 billion worth at end of September 2012.

- The rise of LE 4.2 billion in the outstanding balance of public treasury

bills, issued in the Egyptian pound, thereby increasing the balance of these bills to LE 377.6 billion at end of September 2012, compared with LE 373.4 billion at end of June 2012.

4/2/2- Debt of Public Economic Authorities (Net) In July/Sept. 2012/2013, the debt of public economic authorities (net) scaled up by LE 3.3 billion to LE 66.4 billion at end of September 2012. The rise was a result of the increase in their net borrowing from the banking system by LE 2.1 billion (mainly due to the fall of LE 7.2 billion in their claims and of LE 9.3 billion in their deposits), along with the rise of LE 1.2 billion in their borrowing from the NIB.

Net Domestic Debt of Government

-200.00.0

200.0400.0600.0800.0

1000.01200.0

Sept. 2011 June 2012 Sept. 2012 0.010.020.030.040.050.060.070.0

Treasury BillsBonds & Other Credit FacilitiesNet Government Balances w ith the Banking SystemRatio of Government Debt /GDP

%LE bn

- 63 - 4/2/3 - Debt of the NIB (Net)

Net debt of NIB (including intra-debt) mounted by some LE 1.2 billion in July/Sept. 2012/2013, standing at LE 252.2 billion at end of September 2012. The rise reflected the expansion in the total invested resources in the NIB by LE 0.3 billion to LE 253.9 billion at end of September 2012, and the retreat in its deposits with the banking system by LE 0.9 billion. 4/2/4- Intra-Debt

The intra-debt of public economic authorities and the government to the

NIB amounted to LE 67.1 billion at end of September 2012 (against LE 66.5 billion at end of June 2012). Loans granted by NIB to these authorities accounted for LE 53.8 billion, with an increase of LE 1.2 billion during July/Sept. 2012/2013. The NIB's investments in government securities (bills and bonds) registered LE 13.3 billion, down by LE 0.6 billion in the said period. 4/2/5- The Domestic Public Debt Service

Burdens of the domestic public debt service on the state budget reached LE 48.6 billion during July/Sept. 2012/2013, with a rise of LE 22.0 billion compared with the corresponding period a year earlier. The rise was largely attributed to the increase in principle repayments by LE 14.6 billion, to LE 18.2 billion. Moreover, interest payments accelerated by some LE 7.4 billion, posting LE 30.4 billion. Hence, the respective ratios of debt service to GDP and to public revenues moved up to 2.7 percent and 95.9 percent, from 1.7 percent and 60.7 percent.

Proceeds of Inv estment

Certificates & Accumulated Interest 106.7

Post Office Sav ing Account

78.8

Dollar Dev elopment

Bonds & Others 4.0

Social Insurance Funds 64.4

Resources of the NIB at End of Sept. 2012 (LE bn)

Loans to Holding

Companies & Affiliate Units, Concessional

Lending & Others 185.1

Deposits with the Banking

System 1.7

Investment in Treasury Bills & Bonds 13.3

Loans to Economic

Authorities 53.8

Uses of the NIB at End of Sept. 2012(LE bn)

- 64 -

5- External Transactions

5/1- Foreign Exchange Market and NIRs

The Central Bank of Egypt continued during the period its successful management of the forex market through the dollar interbank system. The weighted average of the US dollar interbank rate posted LE 6.0939 at end of September 2012 (against LE 6.0590 at end of June 2012) with a 0.6 percent drop in the value of the Egyptian pound. While the present Economic Review was under preparation, the Egyptian pound slided further (0.9 percent below the end of June 2012 level), thus bringing the US dollar exchange rate to LE 6.1113 at end of November 2012.

In July/Sept. 2012/2013, the volume of transactions in the dollar interbank market amounted to US$ 7.7 billion (against US$ 10.6 billion in the previous corresponding period). Purchases and sales of private sector banks accounted for 98.26 percent and 78.97 percent, respectively. Thus, the total volume of trade in the interbank market posted US$ 345.2 billion since its inception at the end of 2004 up to the end of September 2012.

CBE resources of foreign currencies amounted to US$ 4.6 billion in July/September 2012/2013 (against US$ 5.1 billion in the previous corresponding period), while uses reached US$ 5.0 billion (against US$ 8.0 billion).

Volume of Dealing and Weighted Average of US Dollar Exchange Rate in the Interbank Market

0.02.04.06.08.0

10.012.014.016.018.020.0

Q1_10/11 Q2_10/11 Q3_10/11 Q4_10/11 Q1_11/12 Q2_11/12 Q3_11/12 Q4_11/12 Q1_12/135.405.505.605.705.805.906.006.106.20

Volume of dealing (during Q) Exchange rate (end of Q)

US$ bn LE

- 65 - NIR at the CBE dropped by US$ 0.5 billion or 3.2 percent in the reporting

period, to US$ 15.0 billion, thus covering 3.3 months of merchandise imports at end of September 2012 (compared with US$ 15.5 billion and 3.2 months of merchandise imports at end of June 2012). At the time of preparing the Review at hand, the NIR remained unchanged at US$ 15.0 billion at end of November 2012.

Net International Reserves & Months of Merchandise Imports

0

4

8

12

16

20

24

28

32

36

40

Jun-08 Sep-08 Jun-09 Sep-09 Jun-10 Sep-10 Jun-11 Sep-11 Jun-12 Sep-12

(US$ bn)

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

NIR NIR/Months of Merchandise Imports

Months

- 66 -

5/2 - Balance of Payments∗

In July/September 2012/2013, Egypt's transactions with the external world unfolded an overall BoP deficit of US$ 518.7 million (against US$ 2.4 billion in the corresponding period a year earlier). This led to a retreat in net international reserves (NIR) at the CBE.

The lower BoP deficit came on the back of the decrease in the current account deficit, which registered US$ 278.9 million (against US$ 2.2 billion), due to the increase in workers remittances by US$ 839.7 million and the decrease in import payments by US$ 760.4 million. Meanwhile, the capital and financial account achieved a net inflow of US$ 443.9 million (down from US$ 502.4 million).

5/2/1- Current Account

In July/September 2012/2013, the current account deficit retreated by 87.2

percent to only US$ 278.9 million (from US$ 2.2 billion) representing 0.1 percent of the GDP. This reflected the increase in current receipts by 8.0 percent to US$ 17.5 billion (from US$ 16.2 billion), and the drop in current payments by 3.3 percent to US$ 17.8 billion (from US$ 18.4 billion) due to the following developments: 5/2/1/1- Trade Balance

The trade deficit narrowed by 12.1 percent, posting US$ 6.9 billion,

(representing 2.4 percent of the GDP), as a principal effect of the decrease in import payments by 5.2 percent to US$ 13.8 billion. In the meantime, exports mounted by 2.7 percent to US$ 6.9 billion. As a result, the coverage ratio of merchandise exports/merchandise imports scaled up from 46.4 percent to 50.2 percent. This will be illustrated in detail in the commodity structure of external trade. * Compiled in accordance with the IMF's BoP Manual, Fifth Edition, September 1993.

Main Items of BoP

-8.0-6.0-4.0-2.00.02.04.0

Q1 Q2 Q3 Q4 Q1

2011/2012 2012/2013

US$ bn

Current Account Capital & Financial AccountOv erall Balance

- 67 -

5/2/1/2 - Balance of Services and Income, and Net Transfers A) Balance of Services and Income:

The services surplus improved by 4.7 percent to US$ 1.7 billion in the period under review (against US$ 1.6 billion). The rise came on the back of the increase in services receipts by 4.4 percent that exceeded the rise of 4.2 percent in services payments. This can be seen as follows:

- Receipts from services and income increased 4.4 percent to US$ 5.6

billion because of the rise in the following items:

• Transportation receipts stepped up by 7.7 percent to US$ 2.2 billion due to the rise in the receipts of Egyptian navigation companies (freight) and the Egyptian aviation companies and despite the retreat of 5.3 percent in Suez Canal receipts to post only US$ 1.3 billion (against US$ 1.4 billion). This was ascribed to the appreciation in the US dollar exchange rate vis-à-vis the SDRs (the currency used in calculating the Suez Canal dues) by 4.3 percent and the slight decline in the net tonnage of ships transiting the Canal.

• Other services receipts scaled up by 13.3 percent to US$ 632.4 million (against US$ 558.4 million), as a result of the rise in the receipts of communication services, construction and contracting services and computer services.

• Government receipts mounted to US$ 81.3 million (from US$ 18.7 million), due to the rise in the other government receipts and the expenses of the foreign embassies in Egypt.

The Coverage Ratio of Merchandise Exports to Merchandise Imports

50.2

45.8

45.0

46.7

46.4

40.0

42.0

44.0

46.0

48.0

50.0

52.0

Q1 Q2 Q3 Q4 Q1

2011/2012 2012/2013

%

- 68 -

• Investment income receipts slightly increased by 1.6 percent to US$ 56.9 million (from US$ 56.0 million), as an outcome of the rise in other investment income and the decrease in FDI and the portfolio investment income.

Such an increase was held back

by the decrease in tourism revenues by 2.3 percent to only US$ 2.6 billion (against US$ 2.7 billion). This was mainly ascribed to the fall in the number of tourist nights to 35.5 million nights (against 37.4 million nights), despite the increase in the average spending of a tourist per night to US$ 74.4 (against US$ 72.2). - Services payments and income

Services payments went up by 4.2 percent, registering US$ 4.0 billion (against US$ 3.8 billion), reflecting the following increases:

• Other services payments rose 27.8 percent to US$ 950.5 million, principally because of the increase in the royalties' payments and licensing fees, construction and contracting services, insurance services, computer services and magazines and newspapers subscription.

• Transportation payments scaled up by 39.2 percent to US$ 435.0 million mainly due to the rise in the amounts transferred by foreign navigation companies (freight), and the amounts transferred for fixing planes in foreign ports and for renting planes from abroad.

• Travel payments surged by 15.5 percent to US$ 724.0 million because of the rise in pilgrimage and omra fees, visa card payments, and payments of tourism companies and hotels abroad.

Balance of Services & Income

5.4 5.2 5.0 5.3 5.6

-3.8 -3.7 -4.3 -3.7 -4.0

1.71.60.7

1.51.6

-6.0

-4.0

-2.0

0.0

2.0

4.0

6.0

8.0

Q1 Q2 Q3 Q4 Q1

2011/2012 2012/2013Services Receipts Services PaymentsBalance of Services & Income

US$ bn

Investment Income Balance

-2600-2200-1800-1400-1000-600-200200

Q1 Q2 Q3 Q4 Q1

2011/2012 2012/2013 Income Receipts Income Payments Income Balance

(US$ mn)

- 69 -

On the other hand, each of the following items declined:

• Investment income payments scaled down by 9.0 percent to US$ 1.6 billion, primarily because of the decrease in the transfers of interest payments and dividends of bonds and securities, profit transfers of foreign oil companies and interests on external debt.

• Government expenditures retreated by 32.8 percent to US$ 215.8 million, due to the decrease in other government expenditures and the expenses of Egyptian embassies abroad.

B) Net Unrequited Transfers:

Net unrequited current transfers surged by 21.8 percent to about US$ 4.9 billion (against US$ 4.0 billion), which had a positive role to play in driving down the current account deficit. The rise was owed to the following developments:

• The pickup of 21.3 percent in net

private transfers, which recorded US$ 4.9 billion (against US$ 4.0 billion), mainly workers' re-mittances that soared by 20.6 percent to US$ 4.9 billion representing 1.7 percent of the GDP.

Services Balances (Surplus/Deficit)July/ Sept.

-0.20-0.3

-1.7

1.8 2.1

-0.3-0.1

-1.6

1.8 1.9

-2.0

-1.0

0.0

1.0

2.0

3.0

TransportationBalance

Travel Balance InvestmentBalance

GovernmentServicesBalance

Other ServicesBalance

2011/2012

2012/2013

US$ bn

Egyptian Workers, Remittances as a Percentage of GDP

1.7

2.0

1.91.5

1.6

0.0

0.5

1.0

1.5

2.0

2.5

Q1 Q2 Q3 Q4 Q1

2011/2012 2012/2013

(%)

- 70 -

• The rise in net official transfers to US$ 40.4 million (against US$ 15.9 million), due to higher cash and commodity grants to the Egyptian government.

Unrequited Current Transfers (Net)

(US$ mn)

July/Sept. Change 2011/2012 2012/2013 Value %

Unrequited Current Transfers (Net) 4026.4 4903.3 876.9 21.8 1- Official Transfers (Net)(a+b-c) 15.9 40.4 24.5 154.1 a- Inflows of cash grants 3.7 7.1 3.4 91.9 b- Other inflows of grants 33.6 38.8 5.2 15.5 c- Outflows of official transfers 21.4 5.5 -15.9 -74.3

2- Private Transfers (Net) (a+b-c) 4010.5 4862.9 852.4 21.3 a- Workers' remittances 4067.0 4906.7 839.7 20.6 b- Other transfers 24.9 21.5 -3.4 -13.7 c- Private transfers abroad 81.4 65.3 -16.1 -19.8

5/2/2 - Capital and Financial Account

In Q1 of FY 2012/2013, the net inflows of the capital and financial account

declined to only US$ 443.9 million (from US$ 502.4 million), as a confluence of the following factors:

1- Portfolio investment in Egypt recorded a net outflow of US$ 327.1 million (against US$ 1.7 billion) as an outcome of foreigners' transactions in Egyptian bonds and TBs that recorded US$ 133.5 million (against US$ 1.7 billion) and net sales of shares at a value of US$ 193.6 million (against US$ 15.2 million).

2- Foreign direct investment in Egypt achieved a net inflow of US$ 108.1 million (against US$ 440.1 million), because of the following:

Net Foreign Investment in Egypt

0.11.9

0.6

-0.9

0.4

-1.3 -0.3-0.5-1.6-1.7

-8.0

-4.0

0.0

4.0

8.0

Q1 Q2 Q3 Q4 Q1

2011/2012 2012/2013

US$ bn

Net FDI in Egypt Net Portfolio Investment in Egypt

- 71 -

• Greenfield investments registered a net inflow of US$ 540.1 million (against US$ 521.9 million); and

• Investments in the oil sector unfolded a net outflow of US$ 446.8

million (against US$ 412.4 million).

The following table illustrates the sectoral distribution of total FDI flows to Egypt in the period under review and the period of comparison. The data shows that the petroleum sector attracted the major share of those flows (74.4 percent), followed by manufacturing (6.7 percent); then services (4.6 percent), and finally construction (0.2 percent).

(US$ mn)

July/September Economic Activity Sectors 2011/2012 Share

(%) 2012/2013 Share

(%) Total FDI Flows to Egypt 2697.8 100.0 2255.3 100.0 Oil 1812.6 67.2 1677.2 74.4 Manufacturing 415.0 15.4 151.6 6.7 Agriculture 72.4 2.6 0.2 0.0 Construction 5.0 0.2 3.9 0.2 Services, of which: 71.8 2.7 103.0 4.6

Real estate 36.7 1.4 14.8 0.7 Finance 18.7 0.7 70.2 3.1 Tourism 5.4 0.2 1.7 0.1 Communications & IT 1.0 0.0 4.4 0.2 Other services 10.0 0.4 11.9 0.5

Undistributed 321.0 11.9 319.4 14.1 3- Other assets and liabilities (the change in banks’ foreign assets and liabilities;

the CBE non-reserve foreign assets and foreign liabilities; and the counterpart to some items included in the current account) posted a net inflow of US$ 1.2 billion (against US$ 1.7 billion).

4- Medium- and long-term loans and facilities resulted in net repayments of

US$ 509.2 million (against US$ 455.2 million), as an outcome of the decrease in total disbursements to US$ 281.2 million (from US$ 337.5 million), while total repayments maintained the same level of US$ 790.4 million.

- 72 -

5/3- External Trade

On the international arena, the data of the World Trade Organization (WTO) indicates that the volume of world merchandise trade shrank by 4.0 percent in July/Sept. 2012, registering some US$ 9.0 trillion (against US$ 9.4 trillion a year earlier). The downtrend was an outcome of the fall in the proceeds of world merchandise exports by 4.2 percent to US$ 4.4 trillion (against US$ 4.6 trillion), and in world import payments by 3.8 percent to US$ 4.5 trillion (against US$ 4.7 trillion).

On the domestic level, the volume of external trade fell during Q1 of FY

2012/13 by 2.7 percent to US$ 20.8 billion (against US$ 21.3 billion), constituting 7.1 percent of GDP, and 0.23 percent of total world external trade. That was ascribed to:

- The decline in the volume of trade between Egypt and the EU countries by

8.5 percent affected by the economic slowdown in the euro area; Egypt's main trade partner (33.7 percent of total external trade).

- The decline in the volume of trade between Egypt and the USA by 12.1

percent. Another affecting factor is the state of political instability in Egypt that cast its dark shadows on the size of economic activity.

Hereunder are the main developments in the external trade:

Growth Rates of Global and Egyptian Trade July/September

-10.0-5.00.05.0

10.015.020.025.0

2010/2011 2011/2012 2012/2013

Global Trade Egyptian Trade

%

- 73 - 5/3/1- Structure of Export Proceeds and Import Payments

First: Export Proceeds by Degree of Processing∗

Export proceeds rose by 2.7 percent to US$ 6.9 billion in July/Sept. 2012/13. That was ascribed to the increase in oil exports by 4.3 percent (48.5 percent of total exports), and in non-oil exports by 1.2 percent (51.5 percent of total exports).

During the relevant quarter, exports of most merchandise groups rose as follows: raw materials by 11.2 percent; finished goods by 4.0 percent; and fuel and mineral oils by 2.6 percent. In the meantime, exports of semi-finished goods declined by 6.5 percent. ∗ Table (5/2) in the Statistical Section shows the distribution of merchandise exports.

Oil & Non-Oil Exports

0.01.02.03.04.05.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010/2011 2011/2012 2012/2013

Oil exports Non-oil exports

US$ bn

Exports by Degree of Processing

0.0

1.0

2.0

3.0

4.0

Fuel, mineral oilsand products

Raw materials Semi-finishedgoods

Finished goods

July/September

2010/2011 2011/2012 2012/2013

US$ bn

- 74 -

A) Fuel, Mineral Oils and Products (49.2 percent of total exports)

Exports of fuel, mineral oils and products scaled up by 2.6 percent to US$ 3.4 billion in the period under review (against US$ 3.3 billion). Crude oil posted US$ 2.1 billion or 61.4 percent of the total exports of this group. B) Raw Materials (4.2 percent of total exports)

Exports of raw materials rose by 11.2 percent to US$ 289.5 million (against US$ 260.3 million). The major part of these exports consisted of dairy products, eggs and honey (19.6 percent) with a rise of 33.7 percent; vegetables and plants (fresh, chilled or frozen); edible fruits and nuts; cotton; potatoes; and oil seeds, oleaginous fruits, and plants for medicinal and industrial uses. C) Semi-Finished Goods (7.5 percent of total exports)

Exports of this group declined in the period under review by 6.5 percent to US$ 523.7 million (against US$ 560.2 million). The main exports were organic and inorganic chemicals (23.6 percent), despite their decline by 17.4 percent; cast iron, semi-finished products and rolled iron; plastics and products thereof; animal and vegetable fats, greases, and oils and their products; carbon; unalloyed aluminum; and tanning and dyeing extracts. D) Finished Goods (39.1 percent of total exports)

Exports of this group picked up by 4.0 percent, recording US$ 2.7 billion (against US$ 2.6 billion). Foremost of these exports came fertilizers (8.2 percent) with a rise of 6.8 percent; ready-made clothes; cotton textiles; pharmaceuticals; miscellaneous edible preparations; soap, detergents and artificial wax; paper, cardboard paper and articles thereof; and iron and steel products.

Second: Merchandise Imports by Degree of Use∗

Merchandise imports fell by 5.2 percent to US$ 13.8 billion in July/Sept. 2012/13, as an outcome of the decline in non-oil imports by 6.9 percent (78.9 percent of total imports), and the rise in oil imports by 1.5 percent (21.1 percent of total imports). * Table (5/3) in the Statistical Section shows the distribution of merchandise imports.

- 75 -

In July/Sept. 2012/13, imports of most merchandise groups dropped. In

detail, imports of consumer goods fell by 7.3 percent; intermediate goods by 6.4 percent; and raw materials by 6.0 percent. In the meantime, imports of fuel, mineral oils and products slightly rose by 0.3 percent, and also the imports of investment goods by 0.1 percent.

A) Fuel, Mineral Oils and Products (15.6 percent of total imports)

Imports of fuel, mineral oils and products slightly rose by 0.3 percent to US$ 2.2 billion, as oil products edged up by 3.2 percent, constituting 98.8 percent of the total imports of this group.

B) Raw Materials (15.1 percent of total imports)

Imports of raw materials declined by 6.0 percent to US$ 2.1 billion (against

US$ 2.2 billion a year earlier), because of the decline in wheat imports by 9.7 percent, iron ore by 9.0 percent, maize by 8.1 percent, and crude oil by 2.9 percent.

Oil & Non-Oil Imports

-15.0

-10.0

-5.0

0.0

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2010/2011 2011/2012 2012/2013

Oil imports Non-oil imports

US$ bn

Imports by Degree of Use

0.01.02.03.04.05.0

Fuel, mineral oils &products

Raw materials Intermediate goods Investment goods Consumer goods

2010/2011 2011/2012 2012/2013

July/SeptemberUS$ bn

- 76 -

C) Intermediate Goods (28.3 percent of total imports)

Imports of intermediate goods scaled down by 6.4 percent to US$ 3.9 billion in Q1 of FY 2012/13 (against US$ 4.2 billion). That was attributed to the plunge in the imports of cement by 89.7 percent; glass and articles thereof by 47.0 percent; tanning extracts by 28.5 percent; and animal and vegetable fats, greases, oils and products by 24.6 percent.

D) Investment Goods (17.1 percent of total imports)

Imports of this group slightly increased by 0.1 percent to US$ 2.4 billion, due to the rise in the imports of cargo transport vehicles by 76.5 percent, passenger vehicles by 67.3 percent; and pumps, fans, and parts thereof by 41.8 percent.

In the meantime, declines were observed in the imports of some goods,

especially bulldozers and cranes and parts thereof by 46.1 percent; printing machinery and parts thereof by 25.2 percent; and agricultural machinery by 23.2 percent.

E) Consumer Goods (23.1 percent of total imports)

Imports of this group scaled down by 7.3 percent, owing to the fall in the imports of non-durable goods by 12.9 percent to US$ 2.4 billion (against US$ 2.8 billion). The imports of the following non-durable goods were essentially behind the decline: vegetables, plants, roots, and tubers (down by 86.0 percent); soap, detergents and artificial wax (down by 62.5 percent); and residues of food industries (a fall of 33.0 percent).

By contrast, imports of durable consumer goods mounted by 17.2 percent, posting US$ 749.6 million (against US$ 639.5 million). That was chiefly the result of the pickup in the imports of passenger cars by 78.7 percent; and household refrigerators and electric freezers by 25.6 percent. 5/3/2 - Sectoral Distribution of Merchandise Transactions

On the level of economic sectors, the shares of the public and investment

sectors in trade exchange declined to 29.0 percent and 7.4 percent, respectively, against 30.0 percent and 9.5 percent. On the other hand, the contribution of the private sector stepped up to 63.6 percent (against 60.5 percent).

- 77 -

As for the sectoral distribution of merchandise exports, the private sector

accounted for 48.5 percent, followed by the public sector with a share of 41.6 percent and the investment sector with 9.9 percent.

As for import payments, the private sector was the major importer with a share of 71.3 percent, followed by the public sector with 22.6 percent and the investment sector with 6.1 percent.

Hereunder is a detailed review of external trade by economic sectors: A- The Private Sector

Export proceeds of the private sector went up by 10.1 percent, registering US$ 3.4 billion (against US$ 3.1 billion). Finished goods constituted 71.0 percent of the total exports of this sector. The main exports were oil products; glass and articles thereof; tobacco; cement; organic and inorganic chemicals; plastics and articles thereof; miscellaneous edible preparations; and iron and steel products.

Merchandise imports of this sector recorded a slight decline of 0.1

percent, amounting to US$ 9.9 billion, because of the drop in the merchandise imports of raw materials by 5.2 percent, investment goods by 5.9 percent and consumer goods by 1.5 percent.

Volume of TradeUS$ 20.8 bn

Public Sec. US$ 6.0 bn

Private sec. US$ 13.3 bn

Investment Sec.US$ 1.5 bn

Exports US$ 0.7 bn

Imports US$ 0.8 bn

Exports US$ 3.4 bn

Imports US$ 9.9 bn

Exports US$ 2.9 bn

Imports US$ 3.1 bn

- 78 - B- The Public Sector

The export proceeds of the public sector fell by 5.3 percent, scoring US$ 2.9 billion (41.6 percent of total export proceeds), against US$ 3.1 billion. The main exports were crude oil and its products (96.3 percent); rubber and its products; unalloyed aluminum; glass and articles thereof; cotton and cotton yarn; milk and condensed cream; and miscellaneous edible preparations.

Moreover, merchandise imports of the public sector decreased by 6.8 percent, to US$ 3.1 billion (against US$ 3.3 billion). That was ascribed to the fall in the merchandise imports of intermediate goods by 25.2 percent; raw materials by 22.9 percent; and fuel, mineral oils and products by 4.7 percent. However, the merchandise imports of consumer goods went up by 51.1 percent and investment goods by 40.4 percent. C-The Investment Sector

The export proceeds of this sector rose by 5.7 percent to US$ 687.0 million (against US$ 649.8 million), representing 9.9 percent of total export proceeds. The main exports were oil products (45.9 percent); cement; cast iron, semi-finished goods and rolled iron; tobacco; organic and inorganic chemicals; and carpets and floor coverings.

The merchandise imports of this sector stepped down by 38.2 percent to US$ 845.9 million (against US$ 1.4 billion). That was attributed to the decrease in the merchandise imports of consumer goods by 71.5 percent; intermediate goods by 67.0 percent; and the two groups of fuel, mineral oils and products; and investment goods by 4.9 percent each. In contrast, the merchandise imports of raw materials scaled up by 21.0 percent. 5/3/3 - Geographical Distribution of Merchandise Transactions ∗

The trade exchange between Egypt and most economic groups declined in

the period under review. As such, the trade exchange between Egypt and the EU fell by 8.5 percent, the USA by 12.1 percent, and the African countries by 3.9 percent. On the other hand, trade exchange between Egypt and the Russian Federation rose by 71.0 percent, and Australia and countries of other regions by 16.4 percent.

∗ Table (5/4) in the Statistical Section illustrates the geographical distribution of imports and exports.

- 79 - The order of countries in terms of the relative importance of trade

exchange with Egypt ran as follows: Italy ranked first (10.1 percent), followed by the USA (9.8 percent), China (5.4 percent), the UAE (5.3 percent) and Germany (4.9 percent).

The geographical distribution of export proceeds in July/Sept. 2012/13 illustrated that the EU came in the lead (39.1 percent), followed by the Arab countries (19.4 percent), and the USA (16.1 percent). As for merchandise imports, the EU came first as well (31.0 percent), followed by the Asian countries (20.0 percent), and the Arab countries (17.8 percent).

The following chart illustrates the relative importance of export proceeds and import payments by economic groups:

African Countries

1.6%

Australia & Other

Countries2.9%

Asian Countries

14.9%

Arab Countries

19.4% USA16.1%

Other European Countries

5.7%

Russian Federation

& C.I.S0.3%

EU39.1%

Exports by Geographical DistributionJuly/September 2012/2013

African Countries

1.0%

Australia & Other

Countries9.9%

Asian Countries

20.0%

Arab Countries

17.8%

USA6.6%

Other European Countries

9.4%Russian Federation

& C.I.S4.3%

EU31.0%

Imports by Geographical DistributionJuly/September 2012/2013

0.01.02.03.04.05.06.07.08.09.0

EU OtherEuropeancountries

Russian Fed.& C.I.S

USA Arab count. Asian count. Africancount.

Australia &other count.

2011/2012 2012/2013

Volume of Trade by Geographical Distribution

July/SeptemberUS$ bn

- 80 - As for the major markets for Egyptian exports, Italy came in the forefront,

followed by the USA, India, the UAE, and the UK, with a combined share of 52.8 percent of total merchandise exports.

In respect of Egyptian imports, China was the main exporter, followed by the USA, Germany, the UAE, and Switzerland with a combined share of 30.5 percent of total imports. 5/3/4 - Breakdown of Trade by Main Commodity

In the first quarter of FY 2012/13, the volume of trade of all merchandise

groups declined, except for crude oil and its products; vehicles, cars and means of transportation; and cereals. Crude oil and its products contributed 30.3 percent, followed by chemicals (9.2 percent) and foodstuffs (8.0 percent).

The breakdown of export proceeds by main commodity showed that crude

oil and its products came first, accounting for 48.5 percent of total exports, followed by chemicals (9.2 percent) and cotton (7.0 percent).

0.01.02.03.04.05.06.07.0

Oil Foodstuffs(excl.

cereals)

Cotton &textiles

Cereals Chemicals Machinery& electricequipment

Basemetals

Vehicles &cars

2011/2012

2012/2013

US$ bn

Volume of Trade by Main CommoditiesJuly/September

Exports by Main Commodities

0.01.02.03.04.0

Oil Foodstuffs(excl.

cereals)

Cotton &textiles

Cereals Chemicals Machinery& electricequipment

Basemetals

Vehicles &cars

2011/2012 2012/2013

US$ bn July/September

- 81 - As for imports by main commodity, crude oil and its products came in the

lead with a share of 21.1 percent, followed by machinery, and electric appliances and parts thereof with 10.3 percent, and foodstuffs (excluding cereals) with 9.9 percent.

Imports by Main Commodities

-3.5-3.0-2.5-2.0-1.5-1.0-0.50.0

Oil Foodstuffs(excl.

cereals)

Cotton &textiles

Cereals Chemicals Machinery& electricequipment

Basemetals

Vehicles &cars

2011/2012 2012/2013

US$ bn July/September

Net International Finance from AbroadJuly / September

(2209.4)(2858.6)

5477.0

-4000

-2000

0

2000

4000

6000

8000

2012/20132011/20122010/2011

(US$ mn)

Net Interest Pay ments and Prof it Transf ersTotal Net Resources f rom Abroad Net International Finance f rom Abroad

- 82 -

5/4- International Finance

According to international finance data in July/September 2012/2013, net resources from abroad decreased by US$ 488.8 million, registering a net outflow of US$ 640.4 million (against US$ 1.1 billion in the respective quarter a year earlier). Likewise, net flows of interest payments and profit transfers dropped by US$ 160.4 million, posting an outflow of US$ 1.6 billion (against US$ 1.7 billion). Accordingly, net international finance recorded an outflow of US$ 2.2 billion (compared with US$ 2.9 billion in the period of comparison).

International Finance from Abroad (Net)

(US$ mn) July/Sept.

2011/12 2012/13+ Change (-)

Net International Finance from Abroad (2858.6) (2209.4) 649.2 A- Net Resources from Abroad (1129.2) (640.4) 488.8 1- Direct investment in Egypt (net) 440.1 108.1 (332.0) 2- Portfolio investment in Egypt (net) (1729.9) (327.1) 1402.8 3- Direct investment abroad (79.0) (25.3) 53.7 4- Portfolio investment abroad (net) (63.0) (1.1) 61.9 5- Official grants (net) 15.9 40.4 24.5 6- External borrowing (net) 286.7 (435.4) (722.1) B- Net Interest Payments and Profit Transfers (1729.4) (1569.0) 160.4 1- Net profit transfers of FDI (1366.0) (1319.6) 46.4 2- Net profit transfers of portfolio investment (208.8) (117.5) 91.3 3- Interest on external loans and facilities (184.1) (170.5) 13.6 4- Net interest on bank deposits abroad 29.5 38.6 9.1

+ Provisional.

(A) Net Inflows of External Resources:

- During July/September of FY 2012/2013, net foreign investments (direct and portfolio) in Egypt [inflows, chart (A)] achieved a net outflow of US$ 219.0 million (compared with US$ 1.3 billion in the period of comparison). That decline stemmed primarily from the drop in the net

- 83 -

outflow of portfolio investment∗ to US$ 327.1 million (against US$ 1.7 billion). This is besides the decline in net FDI in Egypt by US$ 332.0 million, to register a net inflow of US$ 108.1 million (against US$ 440.1 million).

- Net foreign investments abroad (direct and portfolio) [outflows, chart (B)]

went down by US$ 115.6 million, reaching US$ 26.4 million. That was attributable both to the decline in FDI abroad by US$ 53.7 million, to reach merely US$ 25.3 million, and to the drop in portfolio investment abroad by US$ 61.9 million, to US$ 1.1 million.

The following chart illustrates the developments in net foreign

investments (direct and portfolio) in Egypt and abroad in July/Sept. 2012/2013, compared with the same period in the last three years.

- External borrowing (medium-, long- and short-term loans and facilities)

realized net repayments of US$ 435.4 million (compared with net disbursements of US$ 286.7 million in the period of comparison) owing to the fall in the disbursements of loans and facilities in the period under review.

- Net official grants scaled up by US$ 24.5 million, to US$ 40.4 million in

July/Sept. 2012/2013. ∗ Including net foreign investments in Egyptian Treasury bills in the amount of US$ 4.0 billion (outflows), in

addition to net sales of foreigners’ dealings in the stock market (US$ 1.1 billion).

Foreign Investment Flows AbroadJuly/September

(25.3)

(79.0)(94.2)

(1.1)(63.0)(41.2)

(300)

(250)

(200)

(150)

(100)

(50)

0

50

100

2009/2010 2010/2011 2011/2012 2012/2013

US$ mn

Direct Investment AbroadNet Portfolio Investment Abroad

Chart (B)

Foreign Investment Flows in EgyptJuly/September

1731.0440.1 108.1

1186.0

(1729.9)

(327.1)

(5500)

(3500)

(1500)

500

2500

4500

6500

2009/2010 2010/2011 2011/2012 2012/2013

US$ mn

Net Direct Investment in Egypt Net Portfolio Investment in Egypt

Chart (A)

- 84 -

(B) Net flows of interest payments and profit transfers:

Given the returns of capital flows transferred abroad (net basis); namely inflows minus outflows, which are represented in interest payments on external loans and facilities, and foreign (direct and portfolio) investment, a decline of US$ 160.4 million was observed in the net flows of interest payments and profit transfers of direct and indirect investment, resulting in an outflow of US$ 1.6 billion (against US$ 1.7 billion). The drop reflected mainly the fall in net profit transfers of portfolio investments, which posted a net outflow of US$ 117.5 million (against US$ 208.8 million).

5/4/1- Foreign Direct Investment (FDI) in Egypt∗

In July/Sept. 2012/2013, net FDI in Egypt contracted by US$ 332.0

million, registering a net inflow of US$ 108.1 million (compared with US$ 440.1 million in the corresponding period a year earlier). This was mainly ascribed to the 16.4 percent drop in total investment inflows, which outpaced the decline in capital repatriation (4.9 percent).

The breakdown of investment inflows shows that flows from the EU

witnessed the largest decline (US$ 948.1 million), reaching merely US$ 1.2 billion, of which 74.1 percent went to petroleum investments (against US$ 2.1 billion). Along the same line, inflows from the Arab countries fell by some US$ ∗ FDI is a category of international investment that implies the existence of a long-term relationship

(between a resident in a given economy and an enterprise resident in another economy), in which a direct investor owns 10 percent or more of the ordinary shares or voting power in an incorporated enterprise, or its equivalent in an unincorporated enterprise. (Source: IMF's BOP Manual, Fifth Edition).

Flows of Official Grants and External Borrowing July/September

655.1

15.9

40.4

1959.4

286.7

-435.4(500)(200)100400700

100013001600190022002500

2009/2010 2010/2011 2011/2012 2012/2013

US$ mn

Official grants Net external borrow ing

- 85 - 151.0 million, to US$ 163.6 million (mostly greenfield investments that made up 63.0 percent). However, investments from the USA rose by some US$ 503.5 million, to US$ 654.0 million, and also from the rest of the world by US$ 153.1 million, to US$ 261.1 million.

The sectoral distribution of total FDI inflows to Egypt in July/Sept.

2012/2013 revealed that the petroleum sector received 74.4 percent of the total. The bulk of these flows came from the European Union (mainly UK and Belgium), followed by the USA, then the Arab countries (chiefly UAE), and the rest of the world (led by Ukraine). The manufacturing sector came next, with a share of 6.7 percent, followed by the services sector with 4.6 percent.

The breakdown of FDI inflows to Egypt by investment purpose showed

that petroleum investments ranked first as mentioned earlier, amounting to US$ 1.7 billion (74.4 percent of the total). Greenfield investments came next with a share of US$ 563.3 million (24.9 percent), then the real estate investments with US$ 14.8 million (0.7 percent).

Total FDI in Egypt by Economic Sector July / September 2012/2013

(US$ mn)

Petroleum 1677.2

Manufacturing 151.6

Agriculture 0.2

Construction & Building

3.9

Finance 70.2

Services 103.0

Undistributed 319.4

Communications& IT 4.4

Tourism1.7

Other Services 11.9

Real Estate 14.8

1731.0

1597.2440.1 108.1

(3000.0)

(1000.0)

1000.0

3000.0

2009/2010 2010/2011 2011/2012 2012/2013

Outf lows Proceeds f rom selling local enitities to non-residents Petroleum sector inv estments Transf ers f or buy ing real estates in Egy pt by non-residents Greenf ield Inv estmentNet Foreign Direct Inv estment in Egy pt

Net FDI in EgyptJuly / SeptemberUS$ mn

- 86 -

Geographical Distribution of FDI in Egypt (US$ mn)

July/Sept. 2011/2012 2012/2013*

Change + (-)

Flows of FDI in Egypt (Net) 440.1 108.1 (332.0) Total Inflows 2697.8 2255.3 (442.5) USA 150.5 654.0 503.5 EU Countries 2124.7 1176.6 (948.1) Germany 85.5 41.2 (44.3) France 73.0 97.2 24.2 UK 1299.1 701. 2 (597.9) Italy 70.8 37.4 (33.4) Greece 3.2 1.4 (1.8) Spain 8.3 23.3 15.0 The Netherlands 36.6 71.7 35.1 Belgium 251.7 176.5 (75.2) Luxemburg 0.1 0.0 (0.1) Denmark 0.0 0.5 0.5 Sweden 294.2 8.7 (285.5) Austria 1.2 0.1 (1.1) Cyprus 0.2 5.3 5.1 Others 0.8 12.1 11.3 Arab Countries 314.6 163.6 (151.0) Saudi Arabia 20.2 35.3 15.1 UAE 140.1 55.3 (84.8) Tunisia 2.5 0.8 (1.7) Algeria 3.8 3.9 0.1 Kuwait 8.9 11.8 2.9 Lebanon 7.3 6.5 (0.8) Libya 0.1 1.9 1.8 Jordan 0.8 0.6 (0.2) Bahrain 110.1 25.7 (84.4) Qatar 17.3 16.3 (1.0) Oman 1.6 0.8 (0.8) Yemen 0.5 1.4 0.9 Sudan 0.0 0.2 0.2 Others 1.4 3.1 1.7 Other Countries 108.0 261.1 153.1 Switzerland 32.4 68.1 35.7 Japan 9.0 20.5 11.5 Canada 4.3 1.8 (2.5) China 3.3 5.1 1.8 Australia 0.1 1.2 1.1 India 1.4 1.1 (0.3) Turkey 2.5 5.0 2.5 Norway 2.8 0.4 (2.4) Other countries 52.2 157.9 105.7 Capital Repatriation** (2257.7) (2147.2) 110.5 * Provisional. ** Capital repatriation (outflows) means that a direct investor recovers his share in the capital of an investment

enterprise - in case of partial or full disposal - and transfers part/all of it abroad.

- 87 -

5/4/2- External Official Grants

The following chart illustrates that net transfers of official grants (cash and in-kind) increased to some US$ 40.4 million during the period under review (compared with US$ 15.9 million). The pickup was traceable to the rise in inward grants, as inward in-kind grants mounted by US$ 5.2 million or 15.5 percent, to US$ 38.8 million, in addition to the increase of US$ 3.4 million in cash grants, to US$ 7.1 million. On the other hand, official grants transferred abroad dropped by US$ 15.9 million, to US$ 5.5 million (against US$ 21.4 million).

According to the data of the Ministry of International Cooperation, total

new grant commitments decreased in July/Sept. 2012/2013 by US$ 3.0 million or 7.3 percent, to only US$ 38.0 million (from US$ 41.0 million in July/Sept. 2011/2012).

224.8

439.2

3.72.9 7.1

146.9 33.6

38.8

(8.9) (1.4) (21.4)(5.5)

-150.0

-50.0

50.0

150.0

250.0

350.0

450.0

2009/2010 2010/2011 2011/2012 2012/2013

Cash inw ard grants In-Kind inw ard grants Outw ard grants

Transfers of Official Grants during July/September

US$ mn

- 88 -

Official Grants: New Commitments and Net Actual Flows (US$ mn)

July/September 2011/12 2012/13* 2011/12 2012/13*

Actual Flows Commitments Net Inflows 15.9 40.4 Inflows: 37.3 45.9 41.0 38.0 USA 32.0 38.6 15.5 European Union 0.5 Japan 0.5 Germany 4.3 3.8 20.5 Norway China 0.3 1.7 23.6 Canada 0.1 0.1 Switzerland 0.1 Italy 4.1 Kuwait World Bank 3.0 7.7 European Commission 2.0 2.6 Other Countries & Organizations 0.1 1.1 Outflows (21.4) (5.5)

*Provisional.

The sectoral distribution of grant commitments indicates that the bulk of these grants went to the services sector (79.7 percent), of which transportation, communications and information sector made up 17.6 percent, while productive sectors accounted for 20.3 percent of total commitments, as shown in the table below.

Breakdown of Official Grant Commitments by Beneficiary

(US$ mn) July/September

2011/12 % 2012/13* % Change Total 41.0 100.0 38.0 100.0 (3.0) Productive Sectors 10.2 24.9 7.7 20.3 (2.5) Agriculture and irrigation 2.8 6.8 0.0 0.0 (2.8) Energy and electricity 4.7 11.5 0.0 0.0 (4.7) Potable water and sanitation 2.7 6.6 7.7 20.3 5.0 Services Sectors 30.8 75.1 30.3 79.7 (0.5) Transportation, communications and information 0.0 0.0 6.7 17.6 6.7 Financial intermediary and supporting services 0.3 0.7 0.0 0.0 (0.3) Insurance and social solidarity 10.9 26.6 0.0 0.0 (10.9) Education and health 4.5 11.0 0.0 0.0 (4.5) Others 15.1 36.8 23.6 62.1 8.5

*Provisional.

- 89 - 5/4/3- External Debt

Outstanding external debt (public and private - all maturities) surged by 1.0

percent or about US$ 335.4 million, to US$ 34.7 billion at end of Sept. 2012 (against US$ 34.4 billion at end of June 2012). The pickup was an outcome of:

• The increase in most currencies of borrowing versus the US dollar by US$ 440.4 million worth;

• Net disbursement of loans, facilities and deposits (all maturities) of US$ 170.5 million; and

• The drop in the balance of Egyptian bonds and notes issued in global markets by US$ 275.5 million worth (due to the repayment of US$ 284.5 million of LE bonds falling due in July 2012 and the sales of bonds at a value of US$ 9.0 million by resident entities to non-resident entities).

The public sector was the main obligor, with a share of 95.1 percent (US$

33.0 billion) of the total debt at end of Sept. 2012. The private sector owed the remaining 4.9 percent (US$ 1.7 billion). External Debt Structure∗

The breakdown of external debt

by original maturities indicates that medium- and long-term debt (guaranteed and non-guaranteed) amounted to US$ 31.8 billion, accounting for 91.5 percent of total external debt at end of Sept. 2012 (long-term debt represented US$ 30.8 billion and medium-term debt US$ 948.0 million, mostly LE bonds issued abroad). Short-term debt (US$ 2.9 billion) constituted 8.5 percent of the total debt, as shown in the following chart:

- Around US$ 15.1 billion of long-term loans∗∗ (43.5 percent of the total debt) were owed to Paris Club members, while debt to countries other than Paris Club members amounted to US$ 1.2 billion (3.4 percent).

∗ The structure of Egypt’s external debt, according to currencies of borrowing, is considered one of the main

indicators used by the CBE to determine the structure of international reserves by currency. ∗∗ Representing the bilateral loans (rescheduled or non-rescheduled), in addition to buyers’ and suppliers’ credit.

External Debt by O riginal Maturity End of September 2012

Long- term88.8%

Medium- term2.7%

Short- term8.5%

- 90 -

- Debt to international and regional organizations posted some US$ 11.4 billion or 32.7 percent of the total at end of Sept. 2012, with an increase of about US$ 288.2 million above the end of June 2012.

- The balance of Egyptian bonds and notes floated abroad (held by non-

residents) reached US$ 2.6 billion (7.5 percent of the total debt), including:

• Guaranteed government bonds issued in September 2005, at a value

of US$ 1250.0 million and falling due in September 2015; • Sovereign bonds issued abroad in April 2010, at a value of US$

875.2 million, and falling due as two tranches in 2020 and 2040; and

• Government bonds∗ issued abroad in June 2012, at a value of US$ 500 million, and reaching maturity in June 2017.

- Non-guaranteed debt of the private sector registered only US$ 10.9

million. - Long-term deposits reached about US$ 1.5 billion (4.3 percent of the

debt), represented in the deposits held with the CBE.

External Debt Structure (US$ mn)

June 2012 Sept. 2012∗∗ Balances at the End of Value % Value %

Change (-)

Total External Debt 34384.5 100.0 34719.9 100.0 335.4 1- Medium- & long-term loans 31482.6 91.5 31775.3 91.5 292.7 A- Guaranteed loans 31431.3 91.3 31764.4 91.4 333.1

- Bilateral loans owed to Paris Club member countries 15328.4 44.5 15092.3 43.4 (236.1)

- Countries other than Paris Club members 1113.5 3.2 1171.9 3.4 58.4

- Buyers' & suppliers' credit 20.6 0.1 18.7 0.1 (1.9) - International organizations 11068.1 32.2 11356.3 32.7 288.2 - Egyptian bonds & notes 2900.7 8.4 2625.2 7.5 (275.5) - Long-term deposits 1000.0 2.9 1500.0 4.3 500.0

B- Non-guaranteed loans 51.3 0.2 10.9 0.1 (40.4) 2- Short-term debts 2901.9 8.5 2944.6 8.5 42.7

- Deposits 913.7 2.7 943.0 2.7 29.3 - Facilities 1988.2 5.8 2001.6 5.8 13.4

∗ Issued by the Ministry of Finance for the Saudi Fund for Development (SFD). ∗∗ Provisional.

- 91 -

- Short-term debt slightly rose by US$ 42.7 million to US$ 2.9 billion (55.3 percent owed by the private sector). This was an outcome of the increase in short-term deposits of non-residents by 3.2 percent to US$ 943.0 million and in short-term trade facilities by 0.7 percent to US$ 2.0 billion.

External Debt by Debtor

The breakdown of external debt by debtor at end of September 2011 showed the following:

- The debt of the monetary authority scaled up by some US$ 517.8 million to US$ 3.1 billion and so did that of other sectors by US$ 14.7 million to US$ 4.6 billion. - The decrease in the debt of the central and local government by US$ 165.4 million to only US$ 25.4 billion (73.2 percent of the total external debt), and of banks by US$ 31.7 million worth to only US$ 1.6 billion.

Regardless of the impact of the

abovementioned developments on the distribution of external debt by debtor, the Egyptian government remained the main obligor.

External Debt by Creditor

The breakdown of external debt∗ by creditor revealed that 38.1 percent of

the total debt was owed to the four main Paris Club members; namely Japan (11.9 percent), Germany (9.8 percent), France (8.4 percent) and USA (8.0 percent). On the other hand, the Arab countries combined accounted for 5.0 percent, mainly owed to Kuwait (2.9 percent), Saudi Arabia∗∗ (0.9 percent) and UAE (0.4 percent). Meanwhile, the international and regional organizations accounted for 32.7 percent. ∗ Bilateral loans represent only borrowing between governments. ∗∗ Excluding the US$ 1.5 billion deposit at the CBE and the sovereign notes owed by the Ministry of Finance, since they are classified as follows: a long-term deposit at a value of US$ 1 billion and Egyptian notes and bonds in the amount of US$ 500 million.

External Debt by DebtorEnd of September

0

10

20

30

40

201220112010

(US$ bn)

Central & Local Gov ernment Monetary Authority BanksOther Sectors

External Debt by DebtorShare in Total Increase/Decrease

during July / September

693.5

(1027.6)

(165.4)

68.9 (3.9)517.8

(122.6)(65.3) (31.7)

365.9

189.0 14.7

-2000

-1500-1000

-5000

50010001500

2000

2010/2011 2011/2012 2012/2013

(US$ mn)

Central & Local Gov ernmentMonetary Authority BanksOther Sectors

- 92 -

External Debt by Borrowing Currency

The distribution of external debt

by main component currencies manifested that the US dollar was the main currency of borrowing, with a relative importance of 44.6 percent, because of the outstanding obligations in US dollar to creditors other than the USA. The Euro came next with 24.4 percent, followed by the Japanese yen (12.5 percent), the SDRs (8.0 percent) and the Kuwaiti dinar (6.6 percent). All these currencies represented 51.5 percent of the total, while the other currencies made up 3.9 percent (of which the Swiss franc and the LE represented 1.4 and 0.8 percent, respectively). External Debt Service

During July/Sept. 2012/2013, the total payments of the external debt service (medium- and long-term) accelerated by US$ 84.6 million, posting US$ 1.3 billion. The increase was ascribed to the rise in principal repayments by US$ 95.3 million to US$ 1.1 billion. Meanwhile, interest payments dropped by US$ 10.7 million to stand at US$ 224.4 million.

External Debt by CreditorEnd of September 2012

USA8.0%

United Kingdom3.9%Arab countries

5.0%

Germany9.8%

Egyptian bonds and notes

7.5%France8.4%

Japan11.9%

Long-term deposit4.3%

Other countries8.5%

International & regional

organizations32.7%

External Debt by Major CurrenciesEnd of September 2012

Euro24.4%

SDRs8.0%

Other currencies

3.9%

Japanese y en

12.5%

Kuwaiti dinar6.6%

US dollar 44.6%

- 93 - Main Indicators of External Debt

According to the main indicators

of external debt, the ratio of debt service/exports of goods and services rose by 3.4 percent to 10.3 percent in the period under review (against 10.0 percent in the previous corresponding period). Moreover, the external debt per capita went up from US$ 390.3 to US$ 393.5. Short-term debt/net international reserves also climbed to 19.6 percent at end of Sept. 2012 (from 12.4 percent at end of Sept. 2011). By contrast, the ratio of short-term debt/total debt dropped from 8.8 percent to 8.5 percent and total external debt/GDP from 13.2 percent to 11.9 percent.

According to the IMF classification, the indicators of external debt in Egypt relative to peer groups of economic regions showed that Egypt’s external debt indicators lay within safety limits (as shown in the following table). The external debt indicator as a percentage of GDP (13.5 percent) during FY 2011/2012 came among the best global levels that ranged between 16.1 percent (for developing Asian countries) and 66.5 percent (for North and Central European countries). Moreover, by recording 6.1 percent, the indicator of debt service/export proceeds of goods and services was lower than global forecasts for 2012, that ranged between 11.2 percent (for sub-Saharan Africa) and 54.9 percent (for North and Central Europe), according to the IMF World Economic Outlook issued in October 2012.

External Debt Indicators July/September

7.5 7.4

12.4

19.6

8.8 8.5

10.0 10.3

0

5

10

15

20

25

2009/10 2010/11 2011/12 2012/13

%

Debt Serv ice / Current Receipts (including transf ers)Short-term Debt / Net International Reserv esShort-term Debt / Total External DebtDebt Serv ice / Exports of Goods and Serv ices

74.481.9

11.914.7

393.5430.1

0

25

50

75

100

2009/10 2010/11 2011/12 2012/13

%

200250300350400450500550600

(US$)

Government External Debt / External Debt External Debt /GDP External Debt Per Capita (US$) (right axis)

- 94 -

Main Debt Indicators in Egypt Vs. Economic Regions

External Debt/ GDP

External Debt/ Exports of

Goods & Services

Debt Service/ Exports of

Goods & Services

Region

2011 2012 2011 2012 2011 2012 North and Central Europe 62.3 66.5 155.1 155.2 55.5 54.9 Asia 15.6 16.1 50.2 53.9 21.1 24.5 Latin America and the Caribbean 21.8 24.0 100.1 109.1 30.1 28.8 Sub-Saharan Africa 22.6 23.6 59.6 63.8 10.2 11.2 Middle East and North Africa 27.9 27.0 52.5 51.9 14.3 13.6 Source: IMF World Economic Outlook - Statistical Appendix, October 2012 (actual data of 2011 and estimates of 2012). New Commitments on Loans and Facilities

In July/Sept. 2012/2013, new commitments on loans and facilities, amounted to US$ 915.9 million (down by US$ 161.9 million below the corresponding period of the preceding FY). Loans from international and regional organizations constituted US$ 668.2 million or 73.0 percent of total commitments, while bilateral loans recorded US$ 247.7 million or 27.0 percent. The decline was due to the fall in commitments with the African Development Bank and the International Bank for Reconstruction and Development (IBRD). However, that decline could have been sharper but for the new commitments with the European Investment Bank.

Annex

- 95 -

Statistical Section

(1) Indicators of Development and Economic Growth

(1/1) GDP at Factor Cost by Economic Sector (at 2011/2012 Prices) (1/2) GDP by Expenditure (at 2011/2012 Prices) (1/3) Consumer Price Index (Urban) (January 2010=100) (1/4) Producer Price Index (2004/2005=100)

(2) Monetary Aggregates

(2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets (2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets (2/1/3) Banking Survey: Deposits in Local Currency (2/1/4) Banking Survey: Deposits in Foreign Currencies (2/1/5) Banking Survey: Foreign Assets and Liabilities (2/1/6) Banking Survey: Domestic Credit and Other Items (Net) (2/1/7) Total Saving Vessels (2/1/8) Bank Lending and Discount Balances to Business Sector

Financial Sector

(2/2/1) Structure of the Egyptian Banking System (2/2/2) Local Mutual Funds Authorized and Operating as at 30/9/2012

Activity of the Banking System

Central Bank of Egypt

(2/3/1) Note Issued by Denomination (2/3/2) Currency in Circulation outside CBE by Denomination (2/3/3) CBE: Transactions via RTGS and SWIFT

- 96 -

Banks

(2/4/1) Aggregate Financial Position (2/4/2) Deposits by Maturity (2/4/3) Deposits by Sector (2/4/4) Deposits by Economic Activity (2/4/5) Portfolio Investments by Sector (2/4/6) Lending and Discount Balances by Sector (2/4/7) Credit by Sector (2/4/8) Lending and Discount Balances by Economic Activity

Interest Rates

(2/5/1) Discount and Interest Rates on Deposits and Loans in Egyptian Pound (2/5/2) Domestic Interest Rates on 3- Month Deposits in Major Currencies (2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages)

(3) Non-Banking Financial Sector (3/1) Companies Listed on the Egyptian Exchange (3/2) Trading in Shares on the Egyptian Exchange (3/3) Trading in Bonds on the Egyptian Exchange (3/4) Foreigners' Transactions on the Egyptian Exchange (3/5) Global Depository Receipts (GDRs) (3/6) Outstanding Balance of Treasury Bills (Quarterly) (3/7) Outstanding Balance of Treasury Bills (Weekly) (3/8) Outstanding Balance of Treasury Bonds (End of September 2012)

- 97 -

(4) Public Finance & Domestic Public Debt (4/1) Consolidated Fiscal Operations of the General Government (Total Expenditures) (4/2) Consolidated Fiscal Operations of the General Government (Total Revenues) (4/3) Summary of the Consolidated Fiscal Operations of the General

Government (4/4) Gross Domestic Debt (4/5) National Investment Bank (Resources & Uses)

(5) External Transactions

(5/1) Balance of Payments (US$) (5/2) Exports by Degree of Processing (5/3) Imports by Degree of Use (5/4) Regional Distribution of Exports and Imports (5/5) Average LE Exchange Rates (In piasters per foreign currency unit) (5/6) External Debt by Type (5/7) Distribution of External Debt by Main Currencies

(LE mn)

Public Private Total Public Private Total Public Private Total

Total GDP 143464.8 242536.3 386001.1 145744.8 250090.0 395834.8 1.6 3.1 2.5Agriculture, Irrigation & Fishing 8.0 68146.0 68154.0 8.4 70191.0 70199.4 5.0 3.0 3.0 Extractions 51436.0 12033.0 63469.0 51362.0 12062.0 63424.0 -0.1 0.2 -0.1

Oil 23194.0 4044.0 27238.0 23031.0 4015.0 27046.0 -0.7 -0.7 -0.7Natural gas 28066.0 6744.0 34810.0 28150.0 6764.0 34914.0 0.3 0.3 0.3Others 176.0 1245.0 1421.0 181.0 1283.0 1464.0 2.8 3.1 3.0

Manufacturing Industries 9967.0 47810.0 57777.0 10120.0 49254.0 59374.0 1.5 3.0 2.8Oil refining 2250.0 1976.0 4226.0 2121.0 1798.0 3919.0 -5.7 -9.0 -7.3Others 7717.0 45834.0 53551.0 7999.0 47456.0 55455.0 3.7 3.5 3.6

Electricity 4240.0 629.0 4869.0 4576.0 622.0 5198.0 7.9 -1.1 6.8Water 1062.0 0.0 1062.0 1109.0 0.0 1109.0 4.4 0.0 4.4Sewerage 261.0 0.0 261.0 272.0 0.0 272.0 4.2 0.0 4.2Construction & Building 1798.0 12834.0 14632.0 1905.0 13517.0 15422.0 6.0 5.3 5.4Transportation & Storage 3508.0 12535.0 16043.0 3599.0 12987.0 16586.0 2.6 3.6 3.4Communications 3201.8 5886.3 9088.1 3317.0 6233.0 9550.0 3.6 5.9 5.1Information 275.0 521.0 796.0 286.0 543.0 829.0 4.0 4.2 4.1Suez Canal 8202.0 0.0 8202.0 7923.0 0.0 7923.0 -3.4 0.0 -3.4Wholesale & Retail Trade 1394.0 41107.0 42501.0 1449.0 42651.0 44100.0 3.9 3.8 3.8Finance 8976.0 4831.0 13807.0 9263.0 4982.0 14245.0 3.2 3.1 3.2Insurance 877.0 389.0 1266.0 905.0 402.0 1307.0 3.2 3.3 3.2Social Solidarity 12055.0 0.0 12055.0 12452.0 0.0 12452.0 3.3 0.0 3.3Tourism 112.0 11922.0 12034.0 116.0 11994.0 12110.0 3.6 0.6 0.6Real Estate 232.0 9087.0 9319.0 238.0 9469.0 9707.0 2.6 4.2 4.2

Real Estate Ownership 144.0 4555.0 4699.0 147.0 4823.0 4970.0 2.1 5.9 5.8Business Services 88.0 4532.0 4620.0 91.0 4646.0 4737.0 3.4 2.5 2.5

General Government 35555.0 0.0 35555.0 36528.0 0.0 36528.0 2.7 0.0 2.7Sٍocial Services 305.0 14806.0 15111.0 316.4 15183.0 15499.4 3.7 2.5 2.6

Education 0.0 4127.0 4127.0 0.0 4237.0 4237.0 0.0 2.7 2.7Health 292.0 4628.0 4920.0 303.0 4751.0 5054.0 3.8 2.7 2.7Others 13.0 6051.0 6064.0 13.4 6195.0 6208.4 3.1 2.4 2.4

Source : Ministry of Planning.

- 98 -

(1/1) GDP at Factor Cost by Economic SectorAt 2011/2012 prices

SectorsJuly / September Growth Rate(%)

2011/2012 2012/2013 2012/2013

2011/2012 2012/2013 2011/2012 2012/2013 2011/2012 2012/2013

1-GDP at Market Price(2+5-6) 402.1 412.4 100.0 100.0 0.2 2.6

2- Total Domestic Expenditure (3+4) 428.7 434.3 106.6 105.3 2.4 1.3

3- Final Consumption 378.6 387.9 94.2 94.0 4.7 2.5

Final private consumption 333.8 341.9 83.0 82.9 5.0 2.4

Final government consumption 44.8 46.0 11.2 11.1 2.8 2.7

4- Gross Capital Formation 50.1 46.4 12.4 11.3 -11.4 -7.4

Investments 47.6 46.2 11.8 11.2 -22.9 -2.9

Change in stock 2.5 0.2 0.6 0.1 .. ..

5- Exports of Goods & Services 72.3 72.6 18.0 17.6 -2.9 0.4

6- Imports of Goods & Services 98.9 94.5 24.6 22.9 4.5 -4.4

Source : Ministry of planning

- 99 -

(1/2) GDP by Expenditure

( At 2011/ 2012 prices )

Value at LE bn Structure (%) Growth Rate( % )

July/ September

Relative Weights

June Sept. June Sept.

General Index 100.00 114.5 118.8 122.8 126.2 3.8 2.8

Food & Non-Alcoholic Beverages 39.92 126.0 132.2 137.6 144.5 4.9 5.0

Alcoholic Beverages, Tobacco and Narcotics 2.19 169.9 185.5 201.8 201.8 9.2 0.0

Clothing & Footwear 5.41 102.2 103.9 106.8 106.8 1.7 0.0

Housing , Water, Electricity, Gas & Fuel 18.37 100.4 106.7 107.7 109.6 6.3 1.8

Furnishings, Household Equipment & Routine Maintenance of the House 3.77 105.2 108.8 114.4 114.7 3.4 0.3

Health Care 6.33 101.9 102.0 102.0 103.8 0.1 1.8

Transportation 5.68 101.7 102.4 104.5 104.8 0.7 0.3

Communications 3.12 100.0 94.9 95.5 95.5 -5.1 0.0

Recreation & Culture 2.43 108.4 113.4 117.8 121.9 4.6 3.5

Education 4.63 124.3 124.3 136.6 136.6 0.0 0.0

Restaurants & Hotels 4.43 112.4 114.0 116.5 117.1 1.4 0.5

Miscellaneous Goods & Services 3.72 103.2 104.8 104.5 105.2 1.6 0.7

Source: Central Agency for Public Mobilization and Statistics (CAPMAS) (Monthly CPI Bulletin).

* The 9th series of CPI was introduced in August 2010. The weights involved in the formation of the Index were taken

from the results of the 2008/2009 survey of income, expenditure and consumption using January 2010 as a base period.

- 100 -

July/Sept. 2011/2012 2012/2013

Groups

(1/3) Consumer Price Index (Urban) (Jan. 2010 = 100) *

2011 2012Inflation Rate (%)

Relative Weights

June Sept. June Sept.

All Items 100.0 192.1 194.3 185.0 203.1 1.1 9.8

Agriculture, and Fishing 25.1 261.4 262.6 243.9 289.2 0.5 18.6

Mining and Quarrying 21.8 201.5 204.5 181.1 208.0 1.5 14.9

Manufacturing Industries 38.9 165.0 167.4 168.1 168.4 1.5 0.2

Electricity, Gas, Steam and Air Conditioning Supply 2.3 140.3 140.3 140.3 150.6 0.0 7.3

Water Supply, Sewerage, Waste Management and Remediation Activities 2.0 146.5 153.7 157.3 157.3 4.9 0.0

Transportation and Storage 2.8 127.3 131.1 131.1 131.1 3.0 0.0

Accommodation and Food Service Activities 5.0 125.1 127.3 129.3 139.1 1.8 7.6

Information and Communication Activities 2.1 112.5 112.5 112.5 112.5 0.0 0.0

Source: Central Agency for Public Mobilization and Statistics (CAPMAS) ( Monthly PPI Bulletin issued every two months ).

(1/4) Producer Price Index (2004/2005 = 100)

Groups2011 2012 Inflation Rate (%)

July/Sept. 2011/2012 2012/2013

- 101 -

End of Sept. June Sept. June Sept. June Sept.Reserve Money 191497 203071 216655 250992 241242 263668 251723

Currency in circulation outside CBE * 135583 144253 153079 179096 184981 204870 209952

Banks' deposits in local currency 55914 58818 63576 71896 56261 58798 41771

Counterpart Assets 191497 203071 216655 250992 241242 263668 251723Net Foreign Assets 173334 190234 191648 147197 132030 76059 70236Foreign Assets 182139 198605 200054 156331 141293 92168 89351

Gold 9385 12393 12393 16343 16343 19979 19979Foreign securities 154116 162247 167404 114608 101396 51524 46591Foreign currencies 18638 23965 20257 25380 23554 20665 22781

Foreign Liabilities + 8805 8371 8406 9134 9263 16109 19115

Net Domestic Assets 18163 12837 25007 103795 109212 187609 181487Net Claims on Government 94308 80611 109835 102562 147132 165374 196622

Claims; of which: 164474 150288 182528 189620 223608 256605 274817 Government securities 130771 121533 130597 130597 129097 178831 178831

Deposits 70166 69677 72693 87058 76476 91231 78195Net Claims on Banks 8810 29010 56622 147 -2853 -2706 -1655

Claims 29938 49863 77225 23496 20287 22296 23220Deposits in foreign currencies 21128 20853 20603 23349 23140 25002 24875

Other Items (Net)+ -84955 -96784 -141450 1086 -35067 24941 -13480

Source : Central Bank of Egypt.

(2/1/1) CBE Financial Position: Reserve Money and Counterpart Assets

2012

- 102 -

2009 2010 2011

* Including subsidiary coins issued by the ministry of Finance.

+ According to the updated statistical treatment adopted by the IMF, SDR allocations are to be classified as foreign liabilities rather than capital accounts, as of August 2009.

(LE mn)

2009End of Sept. June Sept. June Sept. June Sept.

1- Domestic Liquidity 847808 917459 948172 1009411 1024430 1094408 1124332

A- Money Supply 192759 214040 220472 248707 253802 274510 282854

Currency in circulation outside the banking system 127479 135209 143799 167887 174133 194027 198097

Demand deposits in local currency 65280 78831 76673 80820 79669 80483 84757

B- Quasi-Money 655049 703419 727700 760704 770628 819898 841478

Time & saving deposits in local currency 493662 545303 569542 583732 593542 633858 653308

Demand and time & saving deposits in foreign currencies 161387 158116 158158 176972 177086 186040 188170

2- Counterpart Assets

Net foreign assets + 261819 282408 312144 253500 225259 157624 149982

Domestic credit 729295 775268 792347 892766 943115 1072566 1132336

Other items (net) + -143306 -140217 -156319 -136855 -143944 -135782 -157986

Source : Central Bank of Egypt.

+ According to the new classification of SDR allocations,as of August 2009, referred to in Table (2/1/1)

2010 2011 2012( LE mn )

(2/1/2) Banking Survey: Domestic Liquidity and Counterpart Assets

- 103 -

2009End of Sept. June Sept. June Sept. June Sept.

Total Deposits in Local Currency 558942 624134 646215 664552 673211 714341 738065

1- Demand Deposits 65280 78831 76673 80820 79669 80483 84757

Public business sector * 5768 8938 7385 6670 5925 7363 5331

Private business sector 33300 41246 38729 43324 40618 39083 42546

Household sector 26707 29510 31279 31645 34013 34944 37952

Minus: Purchased cheques & drafts 495 863 720 819 887 907 1072

2- Time and Saving Deposits 493662 545303 569542 583732 593542 633858 653308

Public business sector * 23415 23788 24964 22608 20936 17480 16445

Private business sector 74855 73183 80594 60736 60078 53862 50635

Household sector 395392 448332 463984 500388 512528 562516 586228

Source : Central Bank of Egypt

*Including all public sector companies subject or not to Law No. 203 for 1991.

2010

- 104 -2011

(LE mn)2012

(2/1/3) Banking Survey: Deposits in Local Currency

2009End of Sept. June Sept. June Sept. June Sept.

Total Deposits in Foreign Currencies 161387 158116 158158 176972 177086 186040 188170

1- Demand Deposits 30807 33901 34013 41298 41253 44965 45358

Public business sector * 922 1055 1115 1248 1189 980 1333

Private business sector 20109 22313 22342 26039 26419 29669 28368

Household sector 9883 10673 10622 14077 13718 14443 15878

Minus: Purchased cheques & drafts 107 140 66 66 73 127 221

2- Time and Saving Deposits 130580 124215 124145 135674 135833 141075 142812

Public business sector * 8032 5419 5503 6301 7009 7832 7875

Private business sector 35049 32594 33176 34202 36134 34827 36073

Household sector 87499 86202 85466 95171 92690 98416 98864

Source: Central Bank of Egypt

- 105 -2010 2011

(LE mn)2012

(2/1/4) Banking Survey : Deposits in Foreign Currencies

* Including all public sector companies subject or not to Law No. 203 for 1991.

2009End of Sept. June Sept. June Sept. June Sept.

Net Foreign Assets 261819 282408 312144 253500 225259 157624 149982

Foreign Assets 297689 322209 359653 295480 265921 206964 200402

Central Bank of Egypt 182140 198605 200054 156331 141293 92168 89351

Banks 115549 123604 159599 139149 124628 114796 111051

Foreign Liabilities 35870 39801 47509 41980 40662 49340 50420

Central Bank of Egypt + 8806 8371 8406 9134 9263 16109 19115

Banks 27064 31430 39103 32846 31399 33231 31305

+ According to the new classification of SDR allocations,as of August 2009, referred to in Table (2/1/1)

- 106 -

2010

Source: Central Bank of Egypt

2011(LE mn)

2012

(2/1/5) Banking Survey: Foreign Assets and Liabilities

2009End of Sept. June Sept. June Sept. June Sept.

1- Domestic Credit 729295 775268 792347 892766 943115 1072566 1132336

Net claims on the government (A+B-C) 310727 326141 341319 437337 482312 578654 634011

A-Securities 421924 440410 438244 542792 546946 677139 698054

B-Credit facilities 66142 68140 89033 98826 132538 111362 130998

C-Government deposits 177339 182409 185958 204281 197172 209847 195041

Claims on public business sector * 33506 29985 30727 32981 34856 40620 41895

Claims on private business sector 300342 326350 326748 323241 323834 340865 340908

Claims on household sector 84720 92792 93553 99207 102113 112427 115522

2- Other Items (Net) -143306 -140217 -156319 -136855 -143944 -135782 -157986

Capital accounts + -150493 -170877 -168878 -146543 -152013 -168778 -171871

Net unclassified assets and liabilities 7187 30660 12559 9688 8069 32996 13885

* Including all public sector companies subject or not to Law No. 203 for 1991.

+ According to the new classification of SDR allocations,as of August 2009, referred to in Table (2/1/1)

- 107 -

20112010

Source: Central Bank of Egypt

(LE mn)

(2/1/6) Banking Survey: Domestic Credit and Other Items (Net)

2012

2009End of Sept. June Sept. June Sept. June Sept.

Total Saving Vessels 738450 884085 911314 955163 965870 1028953 1052671

Savings at the Banking System 655049 703419 727700 760704 770628 819898 841478

Time & saving deposits in local currency 493662 545303 569542 583732 593542 633858 653308

Demand and time & saving deposits in foreign currencies 161387 158116 158158 176972 177086 186040 188170

Net Sales of Investment Certificates 83401 90931 92735 94428 95042 97745 99122

Post Office Saving Deposits Not Available 89735 90879 100031 100200 111310 112071

Source: Central Bank of Egypt

- 108 -

2010 2011 2012

(2/1/7) Total Saving Vessels

(LE mn)

2009End of Sept. June Sept. June Sept. June Sept.

Total 33218 29812 30546 32688 34584 40417 41589

In Local Currency 25126 21051 21918 24560 26472 31581 33062

Agriculture 4 3 109 105 105 - 2

Manufacturing 11478 9258 9008 10167 11209 14465 15196

Trade 4547 1737 1662 918 1225 1651 1546

Services 9097 10053 11139 13370 13933 15465 16318

In Foreign Currencies 8092 8761 8628 8128 8112 8836 8527

Agriculture - - - - - - -

Manufacturing 3085 3294 3143 2237 1903 1938 1766

Trade 1434 1566 1419 934 865 955 859

Services 3573 3901 4066 4957 5344 5943 5902

Source: Central Bank of Egypt

Public Business Sector *

* Including all public sector companies subject or not to Law No. 203 for 1991.

- 109 -

2010 2011 2012(LE mn)

(2/1/8) Bank Lending and Discount Balances to Business Sector

2009End of Sept. June Sept. June Sept. June Sept.

Total 263216 287148 285800 284755 286369 304386 302422

In Local Currency 172851 185694 182519 187810 188326 207334 204898

Agriculture 4061 4461 3986 6294 5668 4573 4688

Manufacturing 71278 76229 75092 78448 79234 92476 90345

Trade 39041 49486 37936 36265 34904 39245 39090

Services 58471 55518 65505 66803 68520 71040 70775

In Foreign Currencies 90365 101454 103281 96945 98043 97052 97524

Agriculture 2071 1534 1591 2314 2188 1398 1318

Manufacturing 42230 53355 53278 48550 48594 52260 50381

Trade 13999 13563 14356 9508 9115 7616 8197

Services 32065 33002 34056 36573 38146 35778 37628

Source: Central Bank of Egypt

- 110 -

2010 2011(LE mn)

2012

(2/1/8) Bank Lending and Discount Balances to Business Sector (Contd.)

Private Business Sector

End of Number of Banks Operating in Egypt Number of Branches

September 2009 39 3462

June 2010 39 3502

September 2010 39 3523

June 2011 39 3573

September 2011 39 3591

June 2012 40* 3610

September 2012 40 3634

* After including the Arab International Bank in the banks' record, and being under

the supervision of the CBE as of 5/6/2012.

(2/2/1) Structure of Egyptian Banking System

Source : Central Bank of Egypt.

- 111 -

Fund Name Fund Manager Par Value (LE)

Net Asset Value (LE) at End of June 2012

Net Asset Value (LE) at End of Sept. 2012

Open-end Balance FundsNational Bank of Egypt I + Al Ahly Funds Management 10 34.54 40.33Banque Misr I Misr Capital Investments 100 91.50 103.48National Bank of Egypt II Al Ahly Funds Management 100 68.91 79.44El Watany Bank of Egypt NBK Capital Asset Management - Egypt 100 127.76 146.14National Bank of Egypt V Al Ahly Funds Management 10 8.32 9.74Al-Massi Hermes Funds Management 100 95.83 111.81Kheir Fund Acumen Asset Management 10 9.89 12.36Credit Agricole Egypt IV (Al Theqa) HC Securities 100 110.34 123.65NSGB (Tawazon) Beltone Asset Management 100 89.28 113.35

Open-end Equity FundsCredit Agricole Egypt I Hermes Funds Management 100 157.71 182.60Bank of Alexandria I Hermes Funds Management 100 143.31 166.20Arab Misr Insurance Group ++ Prime Investments Fund Management 100 136.88 162.03Banque Misr II Misr Capital Investments 66.67 40.15 48.35Banque de Caire Hermes Funds Management 10 38.50 45.77Export Development Bank I ( El-Khabeer) HC Securities 33.33 52.68 61.98Suez Canal Bank I HC Securities 500 213.21 251.60Credit Agricole Egypt II Hermes Funds Management 100 77.08 88.98Egyptian Gulf Bank Hermes Funds Management 100 100.56 118.22Banque Misr III HC Securities 100 301.22 359.79Shield Fund +++ Arab African Investment Management 50 98.61 114.32Misr Iran Development Bank I HC Securities 100 261.91 306.15National Bank of Egypt III++++ HC Securities 100 57.87 68.68Commercial International Bank II (Istethmar) CI Asset Management 100 54.65 64.68Piraeus Bank-Egypt I Piraeus Bank- Egypt Asset Management 100 90.75 107.72Housing & Development Bank (Al-Taameer) Prime Investments Fund Management 100 89.72 106.41ABC Bank Delta Rasmala Funds Management 100 72.31 89.08Suez Canal Bank II (Al-Agyal) Beltone Asset Management 10 6.97 8.60Blom Bank Prime Investments Fund Management 100 90.44 105.41Pharos Fund I Pharos Asset Management 100 81.86 97.54Pioneers Fund I Amwal for Financial Investments 100 78.13 93.34Misr Al Mostakbal HC Securities 10 12.00 14.81Belton Traded Equity Fund (Insight) Beltone Asset Management 10 5.87 7.30NSGB (Tadawol) HC Securities 100 103.02 129.24

Open-end Fixed Income FundsCredit Agricole Egypt III Egyptian Fund Management Group 1000 1052.91 1082.87Misr Money Mareket Beltone Asset Management 10 19.23 19.77Commercial International Bank I (Osoul) CI Asset Management 100 183.47 188.73Misr Iran Development Bank II HC Securities 1000 1000.00 1027.14Bank of Alexandria II EFG-Hermes 10 16.70 17.16National Bank of Egypt IV Al Ahly Funds Management 100 162.31 166.35National Societe Generale Bank (Themar) EFG-Hermes 100 159.86 164.32Export Development Bank II Delta Rasmala Funds Management 100 158.57 162.99ABC Bank ( Mazaya ) Beltone Asset Management 10 12.87 13.22HSBC Egypt Bank Fund (Kol Youm) Beltone Asset Management 100 129.54 133.20AAIB( Juman) Arab African Investment Management 100 128.95 132.46Piraeus bank- Egypt II Piraeus Bank- Egypt Asset Management 10 12.76 13.09Audi Bank Fund EFG-Hermes 10 12.81 13.16Banque du Caire II (El Kahera El Youmy) Beltone Asset Management 10 12.53 12.88Blom Bank Fund II CI Asset Management 100 126.07 129.84Al Watany Bank of Egypt Fund (Eshrak) NBK Capital Asset Management - Egypt 10 12.19 12.52Arab Bank Fund (Youmati) Beltone Asset Management 10 12.20 12.55Housing & Development Bank (Mawared) Prime Investments Fund Management 10 12.03 12.37Bank of Alexandria III EFG-Hermes 10 11.79 12.14Prinicipal Bank for Development & Agricultural Credit (Hasad) HC Securities 10 11.99 12.31Arab Investment Bank Fund I EFG-Hermes 10 11.89 12.23Egyptian Gulf Bank Fund (Tharaa) Prime Investments Fund Management 10 10.71 11.03Ahli United Bank (Tharwa) Cairo Funds Management 100 103.47 106.27CIB (El Thabet) CI Asset Management 100 108.54 112.05Al Watany Bank of Egypt Fund (Namaa) NBK Capital Asset Management - Egypt 10 10.62 10.61National Bank of Egypt VIII Ahly Funds Managements 1000 1043.28 1078.00Arab Investment Bank Fund III (Sanady) HC Securities 10 10.67 10.37AAIB( Gozoor) Arab African Investment Management 10 10.28 10.59EDBE III (Al Zahabi) Prime Investments Fund Management 100 102.16 106.50

- 112 -

(2/2/2) Local Mutual Funds Authorized and Operating as at 30/9/2012

Fund Name Fund Manager Par Value (LE)

Net Asset Value (LE) at End of June 2012

Net Asset Value (LE) at End of Sept. 2012

Open-end Islamic Money Market FundsThe United Bank Fund (Al Rakhaa) CI Asset Management 100 101.10 103.72

Open-end Islamic FundsFaisal Islamic Bank EFG-Hermes 100 70.44 80.01Al Baraka Bank Egypt EFG-Hermes 100 53.05 61.12Faisal Islamic Bank - CIB (Al Amman) CI Capital Asset Management 100 39.96 46.66Banque Misr IV HC Securities 100 61.10 71.12Sanabel Fund+++++ Prime Investments Fund Management 100 71.46 83.57Egyptian Saudi Finance -National Bank of Egypt (Bashayer) Al Ahly Fund Management 100 60.77 68.89El Watany Bank of Egypt(Alhayah) NBK Capital Asset Management - Egypt 10 8.94 10.61Arab Investment Bank Fund II (Helal) Cairo Funds Management 100 103.42 115.34Naeem Misr Fund Naeem for Financial Investments 100 108.64 136.52Al Wefak HC Securities 10 8.79 10.69

Mixed Income FundsAl Rabeh Fund Prime Investments Fund Management 100 102.37 104.34

Open-end Islamic Balanced FundsAl Baraka Bank - Egypt (Al Motawazen) AT. Asset Management 100 84.91 98.39

Closed-end FundsOrient Trust Egyptian Investment & Finance Co. 1000 1134.38 1153.10Arab Land Direct Prime Investments Fund Management 1000 685.51 730.44

Capital Guaranteed FundsMisr Bank (El Omr Fund) Cairo Funds Management 100 253.62 268.29

Capital Protected FundsCIB Fund (Hamaya) CI Capital Asset Management 100 112.05 114.60

Asset Allocator FundsSociete Arab Int'l Banque I ++++++ Prime Investments Fund Management 100 387.21 461.24Societe Arab Int'l Banque II Prime Investments Fund Management 100 265.40 316.33

Foreign Currency FundsMisr Money Market ($) Beltone Asset Management 10$ 10.75$ 10.78$Misr Money Market (Euro) Beltone Asset Management 10 € 10.83 € 10.84 €

Fund of FundsMisr Iran Development Bank III (Wafi) El Rashad Asset Management 10 8.21 9.63National Bank of Egypt VII El Rashad Asset Management 100 76.89 88.83

Source: Monthly Bulletin of Egyptian Stock Exchange. + The fund's document has been split into ratio of 1: 50 as of 29/11/2007. The fund has also changed its structure from Balanced to Equity during the period (12 March 2009 - 4 February 2010).++ The document has been split into ratio of 1:5 as of 10/11/2009. +++ The name of Misr International Bank fund has changed to Shield Fund starting from 2/4/2006 and the document has been split into a ratio of 1:2 on the same date. The par value has also changed from LE 100 to LE 50.++++ The fund has changed its type effective from 18/8/2011 to become an open-end equity fund instead of an open-end balanced fund. +++++ The Management Contract for Sanabel Fund Matured on 22 December 2011. ++++++ The fund's document has been split into ratio of 1: 5 and the par value has also changed from LE 500 to LE 100 as of 29/3/2007.

- 113 -

(2/2/2) Local Mutual Funds Authorized and Operating as at 30/9/2012 (Contd.)

End of Sept. June Sept. June Sept. June Sept.Currency By Denomination 137333 145914 155138 179794 187129 207473 214043

PT 25 245 184 178 161 156 147 146

PT 50 308 294 299 303 299 296 295

LE 1 754 845 871 909 900 890 905

LE 5 1905 1619 2550 2738 2749 1944 2243

LE 10 3400 2930 3359 2983 2972 2940 3280

LE 20 6692 5619 6510 9950 10371 7809 7746

LE 50 22072 18836 18770 22350 21575 21720 21580

LE 100 67455 69299 70427 73444 74007 83606 85794

LE 200 34502 46288 52174 66956 74100 88121 92054

- 114 -

2009

Source: Central Bank of Egypt

2010 2011 2012

(LE mn)

(2/3/1) Note Issued by Denomination

End of Sept. June Sept. June Sept. June Sept.Total 135583 144253 153079 179096 184981 204870 209952

Subsidiary Coins & Notes* 292 306 311 324 333 351 359

PT 25 244 184 178 161 156 147 146

PT 50 308 292 298 302 299 296 295

LE 1 752 843 868 907 898 888 902

LE 5 1827 1495 2434 2654 2693 1897 2207

LE 10 3290 2844 3291 2886 2904 2797 3178

LE 20 6513 5480 6246 9672 9893 7527 7583

LE 50 21831 18704 18457 22246 21281 20629 20659

LE 100 66635 68641 69576 73269 73091 82961 84100

LE 200 33891 45464 51420 66675 73433 87377 90523

Source: Central Bank of Egypt

* Issued by the Ministry of Finance

- 115 -

2009 2010 2011 2012

(LE mn)

(2/3/2) Currency in Circulation Outside CBE by Denomination

During

2007/2008 2008/2009 2009/2010 2010/2011 2011/2012 2011/2012 2012/2013

Local Currency Transactions via RTGS*

1- Automated Clearing House (ACH)Number of transactions (thousand) 11724 12062 12994 13012 12829 3072 3257

Value of transactions (LE mn) 483113 548038 584546 626757 661196 162014 170778

2- Other Transactions via RTGS**

Number of transactions (in unit) 700668 897205 1191374 1248692 1298763 309136 339472

Value of transactions (LE mn) 3092401 5294357 13274677 15879701 9402298 2338931 2552915

Foreign Currency Transfers (Dollar Interbank Transactions) via the Fin-Copy System***

Number of transactions (in unit) 13925 12365 12204 15066 14080 3405 3079

Value of transactions (US$ mn) 105587 83019 70008 88052 62319 16601 11310

Source: Central Bank of Egypt.

* The RTGS was launched on 15 /3/ 2009. ** Including corridor operations and deposits for monetary policy purposes as of 15/3/2009.*** This service was introduced on 19/ 9/ 2004.

(2/3/3) CBE: Transactions via RTGS and SWIFT

- 116 -

Fiscal Year July/September

( LE mn )2009

End of Sept. June Sept. June Sept. June Sept.Assets

Cash 12070 12448 13459 14830 14378 14534 15877

Securities & investments in TBs 348061 405895 423444 474176 477618 555326 578842

Balances with banks in Egypt, of which: 184166 200719 231385 117010 121883 104269 101497

Loans and discounts 646 729 954 885 941 978 796

Balances with banks abroad, of which: 79758 57371 62049 96080 82467 75905 73582

Loans and discounts 1699 2004 1547 1398 1740 2714 2768

Loan and discount balances 429793 465990 467397 474139 478956 506736 508424

Other assets 79913 78232 97769 93455 120783 109390 134867

Assets =Liabilities 1133761 1220655 1295503 1269690 1296085 1366160 1413089

Liabilities

Capital 43294 46598 50423 59049 59346 67345 70440

Reserves 21076 28486 26273 22056 24536 25539 27805

Provisions 70917 70418 73228 55106 52135 54127 53612

Bonds & Long-term loans 22107 21697 26518 26180 26141 27840 28134

Obligations to banks in Egypt 34172 53881 73218 28171 21621 19009 22404

Obligations to banks abroad 17461 20305 22772 15168 13710 14792 13187

Total deposits 821675 892492 915782 957037 969780 1023517 1047815

Other liabilities, of which: 103059 86778 107289 106923 128816 133991 149692

Cheques payable 3613 4764 4525 5143 9756 4848 4397

Source : Central Bank of Egypt

- 117 -

(2/4/1) Banks : Aggregate Financial Position

2011 20122010

( LE mn )

2009

End of Sept. June Sept. June Sept. June Sept.Total Deposits 821675 892492 915782 957037 969780 1023517 1047815

Demand deposits 101969 119518 119987 130087 130501 133704 138327

Time & saving deposits and saving accounts 686847 738650 762577 789407 801428 851117 871831

Blocked or retained deposits 32859 34324 33218 37543 37851 38696 37657

Local Currency Deposits 616723 686052 708970 724878 738078 777806 802519

Demand deposits 69794 84152 84458 86967 87281 86742 90833

Time & saving deposits and saving accounts 527319 580020 603322 615839 627673 666995 688129

Blocked or retained deposits 19610 21880 21190 22072 23124 24069 23557

Foreign Currency Deposits 204952 206440 206812 232159 231702 245711 245296

Demand deposits 32175 35366 35529 43120 43220 46962 47494

Time & saving deposits and saving accounts 159528 158630 159255 173568 173755 184122 183702

Blocked or retained deposits 13249 12444 12028 15471 14727 14627 14100

Source : Central Bank of Egypt.

- 118 -(2/4/2) Banks : Deposits by Maturity

2011 20122010

( LE mn )

2009

End of Sept. June Sept. June Sept. June Sept.Total Deposits 821675 892492 915782 957037 969780 1023517 1047815

Local Currency Deposits 616723 686052 708970 724878 738078 777806 802519

Government sector 54911 58496 58944 56728 60556 58930 60185

Public business sector * 29184 32726 32349 29278 26861 24843 21776

Private business sector 108093 114372 119270 103965 100605 92697 92940

Household sector 422099 477842 495263 532032 546541 597459 624180

Foreign sector ** 2436 2616 3144 2875 3515 3877 3438

Foreign Currency Deposits 204952 206440 206812 232159 231702 245711 245296

Government sector 41026 45618 45682 51403 50925 55731 52917

Public business sector * 8954 6474 6619 7549 8199 8812 9208

Private business sector 55157 54907 55518 60241 62552 64496 64441

Household sector 97382 96875 96088 109248 106409 112859 114742

Foreign sector** 2433 2566 2905 3718 3617 3813 3988

Source : Central Bank of Egypt

* Including all public sector companies subject or not to Law No. 203 for 1991.

** Including counterpart deposits of USAID .

- 119 -20122011

(2/4/3) Banks : Deposits by Sector

2010

2009

End of Sept. June Sept. June Sept. June Sept.Total Deposits 821675 892492 915782 957037 969780 1023517 1047815

Local Currency Deposits 616723 686052 708970 724878 738078 777806 802519

Agriculture 6950 5072 4513 3792 3616 2820 2690

Manufacturing 37685 38302 41220 38119 37111 31985 31971

Trade 22357 27829 25312 24304 21788 21097 21418

Services 55980 64895 66824 62311 60310 55171 54217

Unclassified sectors 493751 549954 571101 596352 615253 666733 692223

Foreign Currency Deposits 204952 206440 206812 232159 231702 245711 245296

Agriculture 792 930 729 771 883 935 1044

Manufacturing 27877 23772 23697 24876 24915 27775 26843

Trade 9734 11065 10817 14182 14929 15014 13532

Services 24571 25767 26770 28529 28959 27432 29141

Unclassified sectors 141978 144906 144799 163801 162016 174555 174736

Source : Central Bank of Egypt

- 120 -

2011 2012( LE mn )

(2/4/4) Banks : Deposits by Economic Activity

2010

( LE mn )

2009

End of Sept. June Sept. June Sept. June Sept.Total 348061 405895 423444 474176 477618 555326 578842

In Local Currency 313160 338834 329315 442648 448451 494934 515383

Government sector 277272 303297 292131 407814 414894 461821 479682

Public business sector * 1392 1052 1047 980 950 714 807

Private business sector 34439 34394 36047 33764 32517 32310 34805

Household sector - - - - - - -

Foreign sector 57 91 90 90 90 89 89

In Foreign Currencies 34901 67061 94129 31528 29167 60392 63459

Government sector 13880 15579 15516 4382 2955 36488 39542

Public business sector * - - - - - - -

Private business sector 5334 5597 5728 5475 5534 4708 4439

Household sector - - - - - - -

Foreign sector 15687 45885 72885 21671 20678 19196 19478

Source : Central Bank of Egypt

*Including all public sector companies subject or not to Law No. 203 for 1991.

- 121 -

20122011

(2/4/5) Banks : Portfolio Investments by Sector

2010

( LE mn )2009

End of Sept. June Sept. June Sept. June Sept.

Total 429793 465990 467397 474139 478956 506736 508424

In Local Currency 295330 313654 315488 327764 333046 364175 365258

Government sector 14062 15389 18955 18191 17656 14615 13459

Public business sector * 25125 21051 21918 24560 26472 31581 33062

Private business sector 172851 185694 182519 187810 188326 207334 204898

Household sector 81589 90266 90787 96112 99540 109738 112901

Foreign sector 1703 1254 1309 1091 1052 907 938

In Foreign Currencies 134463 152336 151909 146375 145910 142561 143166

Government sector 18377 23995 18147 21611 20371 18974 21553

Public business sector * 8092 8761 8628 8127 8112 8836 8527

Private business sector 90365 101454 103281 96945 98043 97052 97524

Household sector 3208 2526 2766 3095 2573 2690 2621

Foreign sector 14421 15600 19087 16597 16811 15009 12941

Source : Central Bank of Egypt

*Including all public sector companies subject or not to Law No. 203 for 1991.

- 122 -2011 2012

(2/4/6) Banks : Lending and Discount Balances by Sector

2010

( LE mn )2009

End of Sept. June Sept. June Sept. June Sept.Total 777854 871885 890841 948315 956574 1062062 1087266

In Local Currency 608490 652488 644803 770412 781497 859109 880641

Government sector 291334 318686 311086 426005 432550 476436 493141

Public business sector * 26517 22103 22965 25540 27422 32295 33869

Private business sector 207290 220088 218566 221574 220843 239644 239703

Household sector 81589 90266 90787 96112 99540 109738 112901

Foreign sector 1760 1345 1399 1181 1142 996 1027

In Foreign Currencies 169364 219397 246038 177903 175077 202953 206625

Government sector 32257 39574 33663 25993 23326 55462 61095

Public business sector * 8092 8761 8628 8127 8112 8836 8527

Private business sector 95699 107051 109009 102420 103577 101760 101963

Household sector 3208 2526 2766 3095 2573 2690 2621

Foreign sector 30108 61485 91972 38268 37489 34205 32419

Source : Central Bank of Egypt

* Including all public sector companies subject or not to Law No. 203 for 1991.

- 123 -2011 2012

(2/4/7) Banks : Credit by Sector

2010

( LE mn )2009

End of Sept. June Sept. June Sept. June Sept.Total 429793 465990 467397 474139 478956 506736 508424

In Local Currency 295330 313654 315488 327764 333046 364175 365258

Agriculture 4498 4856 4412 6800 5818 4822 4691

Manufacturing 91387 94810 96818 100646 102433 116282 114204

Trade 43588 51241 39689 37186 36129 41012 40635

Services 72440 70931 82189 85578 87729 91062 91505

Unclassified sectors 83417 91816 92380 97554 100937 110997 114223

In Foreign Currencies 134463 152336 151909 146375 145910 142561 143166

Agriculture 2091 1554 1591 2314 2187 1398 1318

Manufacturing 62043 79423 73167 70744 69179 71868 72474

Trade 15440 15134 15781 10445 9980 8571 9056

Services 37259 38084 39512 43180 45179 43025 44756

Unclassified sectors 17630 18141 21858 19692 19385 17699 15562

Source : Central Bank of Egypt

- 124 -2011 2012

(2/4/8) Banks : Lending and Discount Balances by Economic Activity

2010

More than one-month and less than or

equal to three-month

deposits

More than three-month and less than or equal to six-

month deposits

More than six-month and less than or equal to

one year deposits

Less than or equal to one

year loans

SimpleReturn

Of increasing certificate

value

January 2010 8.50 5.90 6.40 6.70 11.10 9.50 9.00 9.00February ,, 5.90 6.40 6.70 11.00 ,, ,, ,,March ,, 6.00 6.40 6.70 11.10 ,, ,, ,,April ,, 6.00 6.40 6.70 11.10 ,, ,, ,,May ,, 5.90 6.50 6.80 11.20 ,, ,, ,,June ,, 6.30 6.90 7.30 11.10 ,, ,, ,,July ,, 6.30 6.90 7.20 11.10 ,, ,, ,,August ,, 6.30 6.90 7.20 10.90 ,, ,, ,,September ,, 6.40 7.00 7.20 10.90 ,, ,, ,,October ,, 6.60 6.90 7.30 11.00 ,, ,, ,,November ,, 6.60 6.90 7.30 10.90 ,, ,, ,,December ,, 6.60 6.90 7.20 10.70 ,, ,, ,,

January 2011 ,, 6.50 6.90 7.30 10.70 ,, ,, ,,February ,, 6.50 6.90 7.20 10.60 ,, ,, ,,March ,, 6.50 6.90 7.30 10.70 ,, ,, ,,April ,, 6.60 6.90 7.30 10.80 ,, ,, ,,May ,, 6.70 6.90 7.40 10.80 ,, ,, ,,June ,, 6.60 6.90 7.40 11.00 ,, ,, ,,July ,, 6.70 6.90 7.60 11.00 ,, ,, ,,August ,, 6.70 6.90 7.60 11.10 ,, ,, ,,September ,, 6.80 6.90 7.60 11.20 ,, ,, ,,October ,, 7.00 7.00 7.70 11.30 10.00 9.50 ,,November 9.50 7.10 7.00 7.70 11.40 11.50 11.00 ,,December ,, 7.20 7.10 7.80 11.80 ,, ,, ,,

January 2012 ,, 7.40 7.30 7.90 11.90 ,, ,, ,,February ,, 7.60 7.30 8.00 11.90 ,, ,, ,,March ,, 7.70 7.40 8.00 12.00 ,, ,, ,,April ,, 7.60 7.50 8.20 12.10 ,, ,, ,,May ,, 7.60 7.60 8.40 11.90 ,, ,, ,,June ,, 7.70 7.60 8.40 11.90 ,, ,, ,,July ,, 7.70 7.70 8.50 12.00 ,, ,, ,,August ,, 7.70 7.70 8.60 12.00 ,, ,, ,,September ,, 7.70 7.80 8.80 12.00 ,, ,, ,,

Source: Central Bank of Egypt and the Egyptian National Post Authority* As of June 2010, maturities have been changed and the data on interest rates (on deposits and loans) have been compiled according to

the Domestic Money Monitoring System (DMMS).

(2/5/1) Discount and Interest Rates on Deposits and Loans

End of Discount Rate

- 125 -

(Annually %)

Interest Rate on Post Office Saving

Deposits

Average Interest Rates in Banks* Interest Rate on Investment Certificates

in Egyptian Pound

US Dollar Sterling Pound Euro

Min. Max. Min. Max. Min. Max.

January 2010 0.11 0.24 0.15 0.43 0.18 0.49February 0.11 0.25 0.16 0.45 0.18 0.48March 0.13 0.28 0.16 0.45 0.17 0.47April 0.15 0.32 0.17 0.46 0.18 0.47May 0.24 0.53 0.18 0.50 0.19 0.51June 0.24 0.53 0.18 0.51 0.20 0.53July 0.21 0.47 0.19 0.52 0.25 0.66August 0.14 0.30 0.18 0.50 0.25 0.66September 0.13 0.28 0.18 0.51 0.25 0.66October 0.13 0.28 0.18 0.52 0.29 0.78November 0.13 0.28 0.18 0.52 0.29 0.78December 0.14 0.30 0.19 0.53 0.28 0.75

January 2011 0.14 0.30 0.19 0.54 0.30 0.79February 0.14 0.31 0.20 0.56 0.31 0.83March 0.14 0.30 0.20 0.57 0.35 0.93April 0.12 0.27 0.20 0.57 0.40 1.06May 0.11 0.25 0.21 0.58 0.41 1.11June 0.11 0.24 0.21 0.58 0.44 1.18July 0.11 0.25 0.21 0.58 0.47 1.25August 0.14 0.31 0.22 0.61 0.44 1.18September 0.16 0.36 0.24 0.66 0.45 1.19October 0.19 0.41 0.25 0.69 0.46 1.22November 0.23 0.49 0.26 0.72 0.42 1.13December 0.26 0.56 0.27 0.75 0.40 1.07

January 2012 0.25 0.55 0.27 0.76 0.33 0.88February 0.22 0.48 0.27 0.75 0.29 0.76March 0.21 0.46 0.26 0.72 0.21 0.56April 0.21 0.46 0.25 0.71 0.20 0.52May 0.21 0.46 0.25 0.70 0.18 0.48June 0.21 0.45 0.23 0.63 0.17 0.45July 0.20 0.44 0.19 0.54 0.09 0.25August 0.19 0.41 0.17 0.48 0.05 0.14September 0.16 0.36 0.15 0.43 0.05 0.12

Source: National Bank of Egypt.

End of

- 126 -

(2/5/2) Domestic Interest Rates on 3-Month Depositsin Major Currencies

( Annually % )

(%)

91 days 182 days 266 days 273 days 357 days 364 days

July 2012

First week (3/7) 0.000 15.533 0.000 15.907 0.000 15.943

Second week (10/7) 14.498 15.421 0.000 15.789 15.871 0.000

Third week (17/7) 14.372 15.324 15.696 0.000 0.000 15.825

Fourth week (24/7) 14.243 15.241 0.000 15.669 15.771 0.000

(31/7) 14.196 15.207 15.652 0.000 0.000 15.749

Monthly Average 14.327 15.345 15.674 15.788 15.821 15.839

August 2012

First week (7/8) 14.193 15.199 0.000 15.714 15.755 0.000

Second week (14/8) 14.196 15.290 0.000 0.000 0.000 15.845

Third week (21/8) 14.241 15.345 0.000 15.837 15.931 0.000

Fourth week (28/8) 14.227 15.382 15.863 0.000 0.000 15.949

Monthly Average 14.214 15.304 15.863 15.776 15.843 15.897

September 2012

First week (4/9) 14.150 15.342 0.000 15.794 15.918 0.000

Second week (11/9) 13.747 15.096 15.486 0.000 0.000 15.748

Third week (18/9) 0.000 14.248 0.000 14.465 15.007 0.000

Fourth week (25/9) 12.396 13.172 13.354 0.000 0.000 13.803

Monthly Average 13.431 14.465 14.420 15.130 15.463 14.776

Source: Central Bank of Egypt.

(2/5/3) Interest Rates on Treasury Bills (Weekly Weighted Averages)

- 127 -

2009

End of Sept. June Sept. June Sept. June Sept.

Number of Companies (in Unit) 323 215 213 211 214 212 213Number of Shares (mn) 22392 29002 29804 32364 33053 40019 40101Nominal Value of Capital (LE mn) 147846 134748 140108 144699 145643 150106 150704Market Value of Capital (LE mn) 564667 410144 447857 399756 319248 339768 405747

The Market of Medium and Small Enterprises (Nilex)*

Number of Companies (in Unit) 10 16 18 19 21 22Number of Listed Shares (mn) 49 110 152 173 190 217Total Value of Traded Shares (LE mn) 83 22 14 12 7 47Market Value of Capital (LE mn) 407 601 1007 995 1093 1252

The Egyptian Exchange Indices**EGX 20 Capped 7814.8 6925.6 7479.3 5888.1 4522.2 5452.0 6873.7EGX 30 6761.7 6033.1 6634.3 5373.0 4137.4 4708.6 5821.8EGX 70 929.8 527.7 660.6 629.6 458.4 422.0 564.5EGX 100 1405.5 908.7 1077.3 972.9 707.7 729.5 925.5

Source: Monthly Bulletin of Egyptian Exchange.

* Trading in the Nilex Started on 3/6/2010.

constituting EGX 30 and EGX 70, as of August 2009.EGX 20 Capped was also introduced in October 2011, which includes the most

active 20 companies listed on the Egyptian Exchange . The index was computed as of the 1st of February 2003.

** The Egyptian Exchange CASE 30 Index was renamed EGX 30, while the EGX 70 index was introduced as of March 2009 to cover

(3/1) Companies Listed on the Egyptian Exchange

2010 2011

70 companies other than the 30 constituent companies of EGX 30. EGX 100 was also introduced, encompassing those companies

2012

- 128 -

Number of Transactions

(Unit)

Amount (Thousand)

Market Value (mn)

Number of Transactions

(Unit)

Amount (Thousand)

Market Value (mn)

Shares in (Egyptian Pound) 1417752 4758961 25413 1782210 11656637 40086

Floor Transactions 1399821 4489867 22929 1772491 11320344 33648

Over the Counter Trading 17931 269094 2484 9719 336293 6438

Shares in Foreign Currencies (US Dollar) 28921 127338 148 28822 153129 202

Floor Transactions 28671 113767 94 28701 142664 117

Over the Counter Trading 250 13571 54 121 10465 85

Shares in Foreign Currencies (Euro) 0 0 0 10 0.02 0.002

Floor Transactions 0 0 0 0 0 0

Over the Counter Trading 0 0 0 10 0.02 0.002

- 129 -

(3/2) Trading in Shares on the Egyptian Exchange

During July/September

2011/2012

Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.

2012/2013

Number of Transactions Amount Market Value Number of

Transactions Amount Market Value

(Thousand) (Thousand)

Bonds in (Egyptian Pound) 346 5917041 5713216 247 8983614 9442629

Floor Transactions 346 5917041 5713216 247 8983614 9442629

Over the Counter Trading 0 0 0 0 0 0

Bonds in (US Dollar) 0 0 0 0 0 0

Floor Transactions 0 0 0 0 0 0

Over the Counter Trading 0 0 0 0 0 0

- 130 -

(3/3) Trading in Bonds on the Egyptian Exchange

During July/September

2011/2012

(Unit)

Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.

2012/2013

(Unit)

Egyptian Pound US Dollar Egyptian Pound US Dollar

Net Number of Transactions (Unit) -1941 -3463 -23555 1405

Purchases 164156 4451 185411 4117

Sales 166097 7914 208966 2712

Net Volume of Securities (mn) 122 -6 -484 -1

Purchases 769 16 1441 17

Sales 647 22 1925 18

Net Value of Securities (mn) 1725 -11 -1237 3

Purchases 8197 18 8109 20

Sales 6472 29 9346 17

- 131 -

During July/September

(3/4) Foreigners' Transactions on the Egyptian Exchange

2011/2012

Source : Egyptian Financial Supervisory Authority (EFSA) - Monthly Report of the Capital Market.

2012/2013

Jun-12 Sept.-12 Jun-12 Sept.-12

Comercial International Bank / Egypt (CIB) July-96 Bank of New York CIB / HSBC 1.00 9999 4.27 5.52 25.96 34.65

Suez Cement July-96 Bank of New York CIB / HSBC 1.00 7310 7.50 6.50 21.00 25.37

Paints & Chemicals Industries (Pachin) Oct.-97 Bank of New York CIB / HSBC 3.00 6297 1.51 1.51 31.70 37.10EFG-Hermes Aug.-98 Bank of New York HSBC / CIB 0.50 4324 3.30 3.96 10.15 11.92Ezz Steel Company June-99 Bank of New York CIB / HSBC 0.33 573 32.00 32.00 6.99 12.16

Orascom Telecom Holding (OT)* July-00 Bank of New York CIB / HSBC 0.20 11713 2.50 3.10 3.04 3.70

Orascom Construction Industries (OCI)** Aug.-02 Bank of New York CIB / HSBC 1.00 50 40.50 46.55 248.57 286.04

Egypt Lebanon Ceramics (Lecico) Nov.-04 Bank of New York CIB / HSBC 1.00 8796 3.50 3.50 5.53 7.89

Telecom Egypt Dec.-05 Bank of New York CIB / HSBC 0.20 8522 10.80 12.00 13.30 14.38

Naeem Holding Feb.-08 Bank of New York CIB / HSBC 0.25 5625 - - 0.25 0.38

Palm Hills Development May-08 Bank of New York CIB / HSBC 0.20 5435 4.80 4.80 1.92 2.93

G B Auto May-09 Bank of New York CIB 0.20 100 - - 20.84 28.02

Remco for Touristic Villages Construction May-10 JPMorgan HSBC 0.20 1000 - - 2.01 3.43

Orascom Telecom Media and Technology Holding Jan-12 Bank of New York CIB / HSBC 0.20 807593 - - 1.48 0.54

Source: Monthly Bulletin of the Egyptian Exchange.

* The conversion ratio has changed to be 5 shares: 1 GDR, as of 12 April 2007.

** The conversion ratio has changed to be 1 share: 1 GDR, as of 7 May 2009.

Depository Bank Conversion Ratio

- 132 -

Company Order & Date of Offering

(3/5) Global Depository Receipts (GDRs)

Sub Custodian

Bank

Volume on Offering Date

(000s)

GDRs Listed on Global Exchanges Corporate Stocks

Issued on EgyptianExchange

Price ($) at end of Price (LE) at end of

(LE mn)

End of 91 days 182 days 252 days 259 days 266 days 273 days 280 days 343 days 350 days 357 days 364 days 371 days Total

2006

March 6000 24100 - - - - - - - - 69016 - 99116June 7100 26500 - - - - - - - - 69544 - 103144Sept. 9900 27500 - - - - - - - - 69957 - 107357Dec. 8200 27000 - - - - - - - - 71157 - 106357

2007

March 11000 26000 - - - - - - - - 73657 - 110657June 9000 27500 - - - - - - - - 82157 - 118657Sept. 8500 31500 - - - - - - - - 90657 - 130657Dec. 12000 33000 - - - - - - - - 100957 - 145957

2008

March 10500 32500 - - - - - - - - 106457 - 149457June 6800 33000 - - - - - - - - 106639 - 146439Sept. 17000 42500 - - - - - - - - 105940 - 165440Dec. 14500 48500 - - - 28000 - - - - 114940 - 205940

2009

March 9500 51500 - - - 55500 - - 6000 - 97940 - 220440June 6021 43119 - 6000 - 77500 - - 15000 3000 88440 - 239080Sept. 11000 28990 - 6000 - 88500 - - 18000 15000 82890 - 250380Dec. 8480 32767 - 6000 10025 79442 - - 18000 32419 64618 - 251751

2010

March 20000 47264 6000 - 16025 69442 - - 19000 39419 68118 - 285268

June 13000 46867 6000 3000 27025 45442 - - 15000 45169 64618 - 266121

Sept. 19000 45000 15000 3000 26000 39000 - - 21000 42169 58618 - 268787

Dec. 9975 54250 12000 3000 27500 42500 3500 - 31500 38250 59390 - 281865

2011

March 22500 71250 15000 7000 28500 39000 3500 - 31500 41750 56890 3500 320390

June 33000 78000 7325 16500 30250 41866 3500 2785 36840 43552 58985 3500 356103

Sept. 22000 78000 4325 23250 35250 36366 - 2785 40665 43202 60585 3500 349928

Dec. 26500 73850 1325 18250 40250 44312 - 2785 33435 47709 64085 3500 356001

2012

March 2707 86470 - 8750 48382 51899 - 2785 26435 56022 73608 - 357058

June 10000 84095 - 2000 48882 64899 - - 16095 62969 84458 - 373398

Sept. 15500 72475 - - 48882 73250 - - 3270 70820 93358 - 377555

- 133 -

(3/6) Outstanding Balance of Treasury Bills (Quarterly)

Source : Central Bank of Egypt.

(LE mn)

91 days 182 days 259 days 266 days 273 days 350 days 357 days 364 days Total

July 2012

First week (3/7) 8000 84338 2000 45382 64899 16095 62969 87958 371641

Second week (10/7) 10500 84312 2000 45382 68899 12595 62969 84458 371115

Third week (17/7) 12000 82062 2000 45382 65399 12595 62969 87958 370365

Fourth week (24/7) 11000 81062 2000 45382 69399 12595 66469 87958 375865

End of Month 13500 82462 2000 45382 65899 10270 62969 87958 370440

August 2012

First week (7/8) 13500 83925 2000 45382 69899 10270 64969 87958 377903

Second week (14/8) 13500 82925 0 43382 66399 10270 64969 91458 372903

Third week (21/8) 14500 81425 0 43382 70399 6770 67069 88358 371903

Fourth week (28/8) 14500 78925 0 46382 70399 6770 67069 89858 373903

End of Month 14500 78925 0 46382 70399 6770 67069 89858 373903

September 2012

First week (4/9) 14500 77425 0 42882 71264 6770 70569 89858 373268

Second week (11/9) 15500 74925 0 46382 71264 3270 67319 89858 368518

Third week (18/9) 14500 73425 0 45382 73250 3270 70820 89858 370505

Fourth week (25/9) 15500 72475 0 48882 73250 3270 70820 93358 377555

End of Month 15500 72475 0 48882 73250 3270 70820 93358 377555Source: Central Bank of Egypt.

(3/7) Outstanding Balance of Treasury Bills (Weekly)

- 134 -

Tranche Date of Value Interest Maturity &

Issue (LE bn) Rate% Due Date Bonds under the Primary Dealers System **

Twelveth 16/11/2004 5.0 11.625 10 years 16/11/2014

Fourteenth 18/01/2005 1.0 11.400 20 years 18/01/2025

Twenty First 15/11/2005 5.0 9.300 10 years 15/11/2015

Twenty Third 24/01/2006 6.0 8.850 7 years 24/01/2013

Twenty Seventh 29/05/2007 2.0 9.450 7 years 29/05/2014

Twenty Eighth 25/09/2007 2.0 8.450 7 years 25/09/2014

Twenty Ninth 23/10/2007 2.0 8.600 8 years 23/10/2015

Thirtieth 13/11/2007 5.0 8.550 6 years 13/11/2013

Thirty First 22/01/2008 3.0 8.700 8 years 22/01/2016

Thirty Second 12/02/2008 1.5 9.150 10 years 12/02/2018

Thirty Third 19/02/2008 3.0 9.200 6 years 19/02/2014

Thirty Fourth 27/05/2008 3.0 10.650 7 years 27/05/2015

Thirty Fifth 10/06/2008 2.0 10.950 8 years 10/06/2016

Thirty Seventh 10/02/2009 6.0 12.000 5 years 10/02/2014

Thirty Eighth 14/04/2009 5.0 10.550 5 years 14/04/2014

Fortieth 09/06/2009 6.0 11.000 7 years 09/06/2016

Fourty Second 28/07/2009 6.0 10.800 4 years 28/07/2013

Fourty Fourth 15/09/2009 5.1 10.900 5 years 15/09/2014

Fourty Fifth 29/09/2009 6.0 10.900 4 years 29/09/2013

Fourty Sixth 24/11/2009 2.0 12.170 4 years 24/11/2013

Fourty Seventh 08/12/2009 6.5 12.500 5 years 08/12/2014

Fourty Eighth 15/12/2009 5.1 12.800 6 years 15/12/2015

Fourty Ninth 05/01/2010 8.0 12.350 3 years 05/01/2013

Fiftieth 16/02/2010 13.5 12.600 7 years 16/02/2017

Fifty First 02/03/2010 10.0 12.250 5 years 02/03/2015

Fifty Second 06/04/2010 9.5 11.350 3 years 06/04/2013

Fifty Third 06/07/2010 10.0 11.550 3 years 06/07/2013

Fifty Fourth 20/07/2010 7.5 12.550 5 years 20/07/2015

Fifty Fifth 03/08/2010 5.5 13.000 10 years 03/08/2020

Fifty Sixth 05/10/2010 11.5 11.600 3 years 05/10/2013

Fifty Seventh 19/10/2010 7.5 12.350 5 years 14/09/2015

Fifty Eighth 18/01/2011 3.0 11.630 3 years 18/01/2014Fifty Ninth 26/07/2011 8.0 13.100 2 years 26/07/2013Sixtieth 02/08/2011 10.0 13.350 3 years 02/08/2014Sixty first 18/10/2011 7.5 14.000 3 years 18/10/2014Sixty second 25/10/2011 3.9 14.500 7 years 25/10/2018Sixty third 25/10/2011 6.8 14.250 5 years 25/10/2016Sixty fourth 17/01/2012 10.5 16.150 3 years 17/01/2015Sixty fifth 17/01/2012 11.1 16.350 5 years 17/01/2017Sixty sixth 03/04/2012 10.0 16.150 3 years 03/04/2015Sixty seventh 03/04/2012 10.0 16.850 7 years 03/04/2019Sixty eighth 03/04/2012 9.0 17.000 10 years 03/04/2022Sixty ninth 10/04/2012 10.0 16.550 5 years 10/04/2017Seventieth 03/07/2012 15.0 16.150 3 years 03/07/2015Seventy first 14/08/2012 5.5 16.580 5 years 14/08/2017Seventy second 21/08/2012 4.0 16.900 7 years 21/08/2019Seventy third 18/09/2012 1.0 15.454 2 years 16/09/2014

Total 296.5

* According to Law No. (4) for 1995.

** This system was put into force as of July 2004, in virtue of the Minister of Finance's Decree No. 480 for 2002 and the provisions governing

it, issued by the Minister of Finance's Decree No. 723 for 2002, in accordance with the provisions of Article ( 7) of Law No. 92 for 2004.

(3/8) Outstanding Balance of Treasury Bonds*

End of Sept. 2012

Duration

- 135 -

( LE mn )

Total Expenditures 533785 565995 101339 116050

Compensation of Employees 136627 138591 32406 32878

Salaries and wages 108187 109999 26948 27387

Social contributions 12508 12635 3117 3146

Other 15932 15957 2341 2345

Purchases of Goods and Services 28765 29045 3789 3845

Goods 13324 13349 1495 1499

Services 11382 11574 2031 2046

Other 4059 4122 263 282

Interests 133612 118999 31565 29161

Foreign interests 6091 6091 1140 1140

Domestic interests 127521 112908 30425 28021

To NIB &SIFs 25919 0 4228 0

To others 101602 112908 26197 28021

Subsidies, Grants and Social Benefits 145838 190039 22219 38757Subsidies 112987 112987 16494 16494

To GASC 26600 26600 3702 3702To petroleum 70000 70000 10500 10500To others 16387 16387 2292 2292

Grants 6013 6013 620 620Social Benefits 23908 68109 4830 21368

Contribution to SIFs 20700 0 3900 0Other 3208 68109 930 21368

Other 2930 2930 275 275Other Expenditures 33325 33524 7811 7833

Defense 27300 27300 6882 6882Other 6025 6224 929 951

Purchases of Non-Financial Assets(Investments) 55618 55797 3549 3576Fixed assets 49297 49476 3171 3198Others 6321 6321 378 378

Source: The Ministry of Finance .

2012/2013

Estimates 3 Months (Actual)

The Budget SectorThe Budget

Sector, NIB & SIFs

The Budget Sector

The Budget Sector, NIB &

SIFs

- 136 -

(4/1) Consolidated Fiscal Operations of the General Government ( The Budget Sector, NIB and SIFs )

(Total Expenditures)

( LE mn )

Total Revenues 393476 445574 50674 62237

Tax Revenues 266906 266906 40151 40151

Taxes on Income, Profits 121654 121654 15613 15613

From EGPC 45816 45816 0 0

From SCA 14095 14095 2750 2750

From CBE 0 0 5200 5200

From other units 31729 31729 2715 2715

Payable by individuals 30014 30014 4948 4948

Taxes on Property 19403 19403 3877 3877

Taxes on Goods and Services 100702 100702 16982 16982

Taxes on International Trade 20759 20759 3439 3439

Other Taxes 4388 4388 240 240

Grants 9021 9021 -166 -166

Current 8009 8009 -199 -199

Capital 1012 1012 33 33

Other Revenues 117549 169647 10689 22252

Property Income 78027 88142 6117 8078

From EGPC 25986 25986 17 17

From SCA 18636 18636 3901 3901

From CBE 10800 10800 517 517

From economic authorities 2908 2908 614 614

From companies 6046 6046 331 331

Other ( from EGPC & TML )* 400 400 403 403

Other 13251 23367 334 2295

Sales of Goods and Services 17104 17104 3449 3449

Financing Investment 9856 9856 320 320

Other 12563 54545 803 10405

Source : The Ministry of Finance .

* Third Mobile License

2012/2013

Estimates 3 Months (Actual)

The Budget Sector

The Budget Sector, NIB & SIFs

The Budget Sector

The Budget Sector, NIB & SIFs

- 137 -

(4/2) Consolidated Fiscal Operations of the General Government ( The Budget Sector, NIB and SIFs )

(Total Revenues)

( LE mn )

Total Revenues 393476 445574 50674 62237Total Expenditures 533785 565995 101339 116050Cash Deficit 140309 120421 50665 53813Net Acquisition of Financial Assets -5314 688 103 4686Overall Fiscal Balance 134995 121109 50768 58499

Financing Sources 134995 121109 50768 58499Domestic Financing .. .. 87912 71613

Banking Financing .. .. 51527 50002Central Bank .. .. 31325 31325Other Banks .. .. 20202 18677

Non- Banking Financing .. .. 36385 21611NIB .. .. -527 0SIFs .. .. 15393 0Other .. .. 22265 22265NIB Borrowing .. .. 0 92Special Accounts for Economic Authorities .. .. -746 -746

Blocked Account Used in Amortizing Part of CBE Bonds .. .. 0 0Foreign Borrowing .. .. -1004 -1004Arrears .. .. 0 0Others, of which : .. .. -157 23873

Special Accounts for Budget Entities .. .. 0 0Financing Effects for Eliminations .. .. 0 0Exchange Rate Revaluation .. .. 417 417Net Privatization Proceeds .. .. 0 0

Privatization Proceeds .. .. 0 0Treasury Contribution to the Fund .. .. 0 0

Difference between Treasury Bills Face Value & Present Value .. .. -26496 -26496

Foreign Debt Reclassification Diff .. .. 0 0

Discrepancy .. .. -9904 -9904 Cash deficit (surplus) as a percentage of GDP 8.0% 6.8% 2.9% 3.1% Overall fiscal balance as a percentage of GDP 7.7% 6.9% 2.9% 3.3% Revenues as a percentage of GDP 22.4% 25.3% 2.9% 3.6% Expenditures as a percentage of GDP 30.4% 32.2% 5.8% 6.6%Source : The Ministry of Finance .

- 138 -

(4/3) Summary of Consolidated Fiscal Operations of the General Government ( The Budget Sector , NIB and SIFs )

2012/2013

Estimates 3 Months (Actual)

The Budget Sector

The Budget Sector, NIB

& SIFs

The Budget Sector

The Budget Sector, NIB &

SIFs

( LE mn )June Sept. June Sept.2011 2011 2012 2012 2011/2012 2012/2013

Gross Domestic Debt (1+2+3-4) 1044898 1095722 1238137 1331160 50824 930231- Net Domestic Debt of Government (A+B+C+D+E) 808113 856681 990529 1079675 48568 89146A- Balances of Bonds & Bills 916976 919783 1078162 1123701 2807 45539

Treasury bonds with the CBE 130596 129096 178830 178830 (1500) 0 Local currency bonds with public sector banks 4000 4000 4000 4000 0 0 Bonds offered abroad *: 0 0

US$ 7583 3438 3834 3801 (4145) (33)LE 3954 4078 4279 0 124 (4279)

Egyptian treasury bonds 206767 221267 270567 296567 14500 26000 Government notes to compensate for the actuarial deficit in social insurance funds 2000 2000 2000 2000 0 0 Housing bonds 115 118 111 115 3 4 Foreign currency bonds with public sector commercial banks 0 0 0 0 0 0 The equivalent of the retained 5% of corporate profits to purchase government bonds 1830 1830 1905 1905 0 0 Bonds of the Insurance Funds (against the transfer of NIB debt to the Treasury) 204028 204028 204028 219507 0 15479 Treasury Bills

LE 356103 349928 373398 377555 (6175) 4157US$ 0 0 35210 35407 0 197€ 0 0 0 4014 0 4014

B- Borrowing from other entities 2000 8056 13036 24756 6056 11720

C- Credit Facilities from the Social Insurance Funds 2343 2143 1725 1525 (200) (200)

D - The Masri Dollar certificate ** 0 0 193 627 0 434E- Net Government Balances with the Banking System -113206 -73301 -102587 -70934 39905 316532- Borrowing of Economic Authorities (Net) 66290 67881 63112 66393 1591 3281

Net Balances of Economic Authorities with the Banking System 14149 14706 10457 12526 557 2069

Borrowing of Economic Authorities from NIB *** 52141 53175 52655 53867 1034 12123- NIB Debt (Net) 238179 239606 251028 252248 1427 1220

NIB Debt 240851 241923 253679 253950 1072 271

Deposits of the NIB with the banking system (-) 2672 2317 2651 1702 (355) (949)

4- NIB Intradebt 67684 68446 66532 67156 762 624

Government debt to the NIB (investments in government securities) 15543 15271 13877 13289 (272) (588)

Loans of economic authorities to NIB 52141 53175 52655 53867 1034 1212

Source: Central Bank of Egypt - Ministry of Finance - National Investment Bank.

* ( Holdings of resident financial institutions in Egypt represented in the banking system and the insurance sector ).

** In order to support the national economy and finance the development plan, the National Bank of Egypt issued a new US dollar certificate in May 2012 for Egyptians resident abroad to

invest their savings in the Egyptian market. The Masri Dollar Certificate is a three-year certificate, with a 4% annual return, and is not redeemable in the first six months. Its minimum

purchase value is US$ 1000, with no ceiling.

(4/4) Gross Domestic Debt

*** Apart from the interest payments due to the NIB.

Change + (-) during July/Sept. End of

- 139 -

(LE mn)June Sept. June Sept.

End of June 2011 2011 2012 2012 2011/2012 2012/2013

Liabilities :of which 240851 241923 253679 253950 1072 271

. Social Insurance Fund for Gov. Employees 32982 32982 34999 34999 0 0

. Social Insurance Fund for Pub. & Priv. Business Sectors Employees 29663 29143 29765 29379 (520) (386)

. Proceeds from investment certificates 94635 95279 97904 98967 644 1063

. Accumulated interest on investment certificates (Category A) 8747 8726 8005 7733 (21) (272)

. Proceeds from US dollar development bonds 9 9 7 7 0 0

. Post office savings 71978 71978 78852 78852 0 0

. Others* 2837 3806 4147 4013 969 (134)

Assets :of which 240851 241923 253679 253950 1072 271. Loans to economic authorities 52141 53175 52655 53867 1034 1212

. Investments in government securities (bills and bonds) 15543 15271 13877 13289 (272) (588)

. Deposits of the NIB with the banking system 2672 2317 2651 1702 (355) (949)

. Lending to holding companies and affiliate units, concessional loans, and others 170495 171160 184496 185092 665 596 (NIB debt minus its intradebt)

* Including deposits of the private insurance funds, saving certificates, and loans & deposits of various entities.

(4/5) National Investment Bank ( Resources and Uses)

- 140 -

Change + (-) during July/Sept.

(US$mn)

Change

Value % Value % (-)

Balance of Current Account (2175.1) (278.9) 1896.2

Balance of Current Account (Excluding Transfers) (6201.5) (5182.2) 1019.3

Receipts 12175.9 100.0 12595.3 100.0 419.4

Export proceeds** 6764.8 55.5 6947.9 55.2 183.1

Transportation, of which 2076.3 17.0 2236.6 17.8 160.3

Suez Canal dues 1360.4 11.2 1288.4 10.2 (72.0)

Travel 2701.7 22.2 2640.2 21.0 (61.5)

Investment income 56.0 0.5 56.9 0.4 0.9

Government receipts 18.7 0.2 81.3 0.6 62.6

Other receipts 558.4 4.6 632.4 5.0 74.0

Payments 18377.4 100.0 17777.5 100.0 (599.9)

Import payments** 14587.9 79.4 13827.5 77.8 (760.4)

Transportation 312.4 1.7 435.0 2.4 122.6

Travel 626.8 3.4 724.0 4.1 97.2

Investment income, of which 1785.4 9.7 1624.7 9.1 (160.7)

Interest paid 187.0 1.0 175.7 1.0 (11.3)

Government expenditures 321.0 1.7 215.8 1.2 (105.2)

Other payments 743.9 4.1 950.5 5.4 206.6

Transfers 4026.4 100.0 4903.3 100.0 876.9

Private (net) 4010.5 99.6 4862.9 99.2 852.4

Official (net) 15.9 0.4 40.4 0.8 24.5

* Preliminary figures.

** Including the exports & imports of free zones.

- 141 -

(5/1) Balance of Payments

2011/2012* 2012/2013*

July/Sept.

(US$mn)

2011/2012* 2012/2013*Value Value

Capital & Financial Account 502.4 443.9

Capital Account -20.5 -38.6Financial Account 522.9 482.5 Direct Investment Abroad -79.0 -25.3 Direct Investment in Egypt (Net) 440.1 108.1 Portfolio Investments Abroad -63.0 -1.1 Portfolio Investments in Egypt (Net), Of which : -1729.9 -327.1 Bonds -325.5 -275.5 Other Investments (Net) 1954.7 727.9 Net Borrowing 286.7 -435.4

Medium -and Long -Term Loans -459.0 -508.1

Drawings 313.2 272.0 Repayments -772.2 -780.1 Medium -Term Suppliers & Buyers Credit 3.8 -1.1

Drawings 24.3 9.2 Repayments -20.5 -10.3 Short -Term Suppliers & Buyers Credit (Net) 741.9 73.8 Other Assets 1911.9 1007.9 CBE 15.5 -10.1 Banks 2421.3 723.1 Other -524.9 294.9 Other Liabilities -243.9 155.4

CBE -4.4 503.1 Banks -239.5 -347.7Net Errors & Omissions -683.4 -683.7Overall Balance -2356.1 -518.7Change in Reserve Assets at the CBE, Increase (-) 2356.1 518.7Source: CBE.

* Preliminary figures.

- 142 -

(5/1) Balance of Payments (Contd.)

July/Sept.

(US$ mn)

Value % Value % Total *** 6764.8 100.0 6947.9 100.0 183.1Fuels , Mineral Oils & Products 3330.1 49.2 3415.1 49.2 85.0

Crude oil 1765.0 26.1 2097.0 30.2 332.0Petroleum products **** 1468.7 21.7 1275.7 18.4 (193.0)Coal & types thereof 13.3 0.2 9.5 0.1 (3.8)

Raw Materials 260.3 3.8 289.5 4.2 29.2Cotton 18.9 0.3 27.1 0.4 8.2Potatoes 14.4 0.2 20.7 0.3 6.3Edible fruits & nuts 18.6 0.3 32.1 0.5 13.5Oil seeds & oleaginous fruits, medicinal plants & plants for manufacturing 9.0 0.1 16.1 0.2 7.1

Spices&vanilla 1.5 0.0 1.3 0.0 (0.2)Medicinal plants 7.1 0.1 7.2 0.1 0.1Citrus fruits 10.6 0.2 6.0 0.1 (4.6)Raw hides & tanned leather 11.4 0.2 7.2 0.1 (4.2)Flax, raw 0.0 0.0 0.2 0.0 0.2Edible vegetables roots & tubers 50.3 0.7 42.6 0.6 (7.7)Milk, dairy products, eggs & honey 42.4 0.6 56.7 0.8 14.3

Semi-finished Goods 560.2 8.3 523.7 7.5 (36.5)Carbon 53.2 0.8 46.4 0.7 (6.8)Essential oils & resins 10.3 0.2 6.1 0.1 (4.2)

- 143 -

Change(-)

(5/2) Exports by Degree of Processing *

July/September2011/2012** 2012/2013**

(US$ mn)

Value % Value % Cotton yarn 21.3 0.3 18.9 0.3 (2.4)Aluminium, unalloyed 30.2 0.4 30.0 0.4 (0.2)Animal & vegetable fats, greases & oils & products 29.8 0.4 48.4 0.7 18.6Synthetic fibers 12.8 0.2 4.9 0.1 (7.9)Organic & inorganic chemicals 149.9 2.2 123.8 1.8 (26.1)Cast iron & semi-finished products & rolled iron 135.1 2.0 109.1 1.6 (26.0)Leather, tanned 5.2 0.1 2.6 0.0 (2.6)Tanning or dyeing extracts 17.0 0.3 28.6 0.4 11.6Plastic & articles thereof 88.4 1.3 93.7 1.3 5.3Finished Goods 2612.9 38.6 2718.7 39.1 105.8Milk & condensed cream 1.6 0.0 9.5 0.1 7.9Dried onion 5.2 0.1 4.5 0.1 (0.7)Rice 4.7 0.1 2.4 0.0 (2.3)Vegetable & fruit preparations 11.7 0.2 17.4 0.3 5.7Miscellaneous edible preparations 99.8 1.5 93.6 1.3 (6.2)Manufactured tobacco and tobacco substitutes 18.1 0.3 22.4 0.3 4.3Sugar and its products 21.4 0.3 25.8 0.4 4.4Pharmaceuticals 93.5 1.4 95.1 1.4 1.6Fertilizers 209.4 3.1 223.6 3.2 14.2Cement 25.1 0.4 27.6 0.4 2.5

- 144 -(5/2) Exports by Degree of Processing * (Contd.)

July/SeptemberChange(-) 2011/2012** 2012/2013**

(US$ mn)

Value % Value % Extracts of essential oils & resins 21.1 0.3 33.8 0.5 12.7Leather products 6.8 0.1 8.9 0.1 2.1Rubber & articles 23.4 0.3 14.1 0.2 (9.3)Paper, cardboard paper & articles thereof 63.2 0.9 76.2 1.1 13.0Ceramic products 43.4 0.6 45.0 0.6 1.6Cars, bicycles & tractors 34.7 0.5 32.4 0.5 (2.3)Cotton textiles 169.6 2.5 163.3 2.4 (6.3)Carpets & other floor coverings 50.2 0.7 39.5 0.6 (10.7)Shoes & accessories 0.2 0.0 0.6 0.0 0.4Ready-made clothes 200.1 3.0 181.0 2.6 (19.1)Glass & glassware 52.7 0.8 60.5 0.9 7.8Copper & articles 57.5 0.8 55.1 0.8 (2.4)Aluminium articles 94.7 1.4 59.6 0.9 (35.1)Articles of iron and steel 92.3 1.4 72.3 1.0 (20.0)Wood & articles thereof and charcoal 3.3 0.0 4.4 0.1 1.1Marble & granite 26.3 0.4 22.5 0.3 (3.8)Articles of base metals 74.8 1.1 43.4 0.6 (31.4)Optical appliances 12.7 0.2 20.9 0.3 8.2Soap & Detergents, fabricated candles 88.9 1.3 78.7 1.1 (10.2)

Miscellaneous Goods (Undistributed) 1.3 0.0 0.9 0.0 (0.4)Source: Central Bank of Egypt.* Commodities are classified according to the Harmonized System.** Provisional.*** Include exports of free zones. **** Include natural gas, and bunker & jet fuel.

- 145 -(5/2) Exports by Degree of Processing * (Contd.)

July/SeptemberChange(-) 2011/2012** 2012/2013**

(US$ mn)

Value % Value % Total *** 14587.9 100.0 13827.5 100.0 (760.4)Fuels, Mineral Oils & Products 2153.2 14.8 2160.1 15.6 6.9

Petroleum products **** 2068.6 14.2 2133.8 15.4 65.2Coal & types thereof 5.2 0.0 12.8 0.1 7.6

Raw Materials 2224.7 15.3 2091.3 15.1 (133.4)Crude oil 804.0 5.5 781.0 36.2 (23.0)Wheat 426.0 2.9 384.6 2.8 (41.4)Maize 368.2 2.5 338.4 2.4 (29.8)Tobacco 164.0 1.1 118.6 0.9 (45.4)Metal ores 43.2 0.3 25.7 0.2 (17.5)Iron, ore 193.2 1.3 175.8 1.3 (17.4)Seeds & oleaginous seeds 125.4 0.9 197.8 1.4 72.4Cotton 26.7 0.2 5.0 0.0 (21.7)

Intermediate Goods 4177.4 28.6 3908.9 28.3 (268.5)Sugar, raw 180.7 1.2 184.7 1.3 4.0Animal and vegetable fats, greases & oils and products 442.1 3.0 333.3 2.4 (108.8)

Cement 54.4 0.4 5.6 0.0 (48.8)Organic & inorganic chemicals 554.6 3.8 499.8 3.6 (54.8)Fertilizers 69.0 0.5 62.3 0.5 (6.7)Tanning & dyeing extracts 74.4 0.5 53.2 0.4 (21.2)Essential oils & resinoids 11.2 0.1 11.8 0.1 0.6Plastic & articles thereof 323.8 2.2 331.8 2.4 8.0

(5/3) Imports by Degree of Use * - 146 -

July/SeptemberChange(-) 2011/2012** 2012/2013**

(US$ mn)

Value % Value % Wood & articles thereof 224.0 1.5 294.2 2.1 70.2Paper, cardboard paper & articles thereof 274.8 1.9 226.6 1.6 (48.2)Cotton textiles 44.5 0.3 37.3 0.3 (7.2)Synthetic fibers 171.1 1.2 164.8 1.2 (6.3)Ceramic products 81.4 0.6 63.6 0.5 (17.8)Glass & articles 37.9 0.3 20.1 0.1 (17.8)Iron & steel products 748.1 5.1 586.9 4.2 (161.2)Copper & articles 101.0 0.7 132.1 1.0 31.1Rubber & articles 120.2 0.8 147.5 1.1 27.3Aluminium & articles 54.4 0.4 71.0 0.5 16.6Articles of base metals 147.1 1.0 134.2 1.0 (12.9)Parts & accessories of motor vehicles 395.4 2.7 435.4 3.1 40.0

Investment Goods 2367.8 16.2 2369.9 17.1 2.1Pumps, fans & parts thereof 162.6 1.1 230.6 1.7 68.0Machines and apparatus for ginning and spinning & parts thereof 13.5 0.1 14.9 0.1 1.4

Computers 207.5 1.4 172.4 1.2 (35.1)Motors, generators, transformers & parts thereof 272.3 1.9 266.1 1.9 (6.2)Parts of railway and tramway locomotives or rolling stock equipment 35.9 0.2 49.4 0.4 13.5

Tractors 7.5 0.1 10.4 0.1 2.9Vehicles for transport of passengers 5.2 0.0 8.7 0.1 3.5Vehicles for transport of goods 6.8 0.0 12.0 0.1 5.2

(5/3) Imports by Degree of Use* (Contd.) - 147-

July/SeptemberChange(-) 2011/2012** 2012/2013**

(US$ mn)

Value % Value % Tools, implements, cuttery & spoons 69.6 0.5 68.4 0.5 (1.2)Air conditioners 63.2 0.4 59.8 0.4 (3.4)Cranes and bulldozers & parts thereof 359.7 2.5 193.9 1.4 (165.8)Agricultural machinery 22.0 0.2 16.9 0.1 (5.1)Printing machinery & parts 29.4 0.2 22.0 0.2 (7.4)Electric appliances for telephones & telegraph 239.8 1.6 213.9 1.5 (25.9)Optical appliances 119.5 0.8 108.7 0.8 (10.8)

Consumer Goods 3445.3 23.7 3194.0 23.1 (251.3)A - Durable Goods 639.5 4.4 749.6 5.4 110.1

Household refrigerators & electric freezers 35.5 0.2 44.6 0.3 9.1Televisions & parts thereof 99.3 0.7 101.3 0.7 2.0Vehicles for transport of persons 134.5 0.9 240.3 1.7 105.8Household electric-motor appliances 197.9 1.4 171.4 1.2 (26.5)

B - Non-durable Goods 2805.8 19.2 2444.4 17.7 (361.4)Meat and edible offals 208.8 1.4 270.8 2.0 62.0Fish, crustaceans, molluscs and others 69.9 0.5 89.9 0.7 20.0Dairy products, eggs, poultry and honey 146.9 1.0 116.1 0.8 (30.8)Edible vegetables roots & tubers 344.1 2.4 48.2 0.3 (295.9)Tea 37.0 0.3 44.9 0.3 7.9

(5/3) Imports by Degree of Use* (Contd.)

- 148 -

July/SeptemberChange(-) 2011/2012** 2012/2013**

(US$ mn)

Value % Value %Miscellaneous edible preparations 198.4 1.4 258.6 1.9 60.2Pharmaceuticals 509.2 3.5 546.4 4.0 37.2Insecticides 3.8 0.0 4.3 0.0 0.5Residues of foodstuff industries & animal fodder 164.4 1.1 110.1 0.8 (54.3)Live animals 37.5 0.3 24.8 0.2 (12.7)Ready-made clothes 257.1 1.8 221.7 1.6 (35.4)Cotton textiles 152.3 1.0 207.8 1.5 55.5Sugar, refined and products 18.2 0.1 1.8 0.0 (16.4)Lentils 14.9 0.1 7.3 0.1 (7.6)Soap, detergents & artificial wax 128.4 0.9 48.2 0.3 (80.2)

Miscellaneous Goods (Undistributed) 219.5 1.4 103.3 0.7 (116.2)Source: Central Bank of Egypt.* Commodities are classified according to the Harmonized System.** Provisional.*** Including imports of free zones, and in-kind grants & loans.**** Including gas, and bunker & jet fuel.

- 149-

(5/3) Imports by Degree of Use* (Contd.)

July/SeptemberChange(-) 2011/2012** 2012/2013**

(US$ mn)

2011/2012** 2012/2013** 2011/2012** 2012/2013** 2011/2012** 2012/2013**Total *** 6764.8 6947.9 14587.9 13827.5 (7823.1) (6879.6)

European Union 2968.5 2715.2 4681.0 4287.0 (1712.5) (1571.9)Other European countries 343.0 398.5 1412.9 1301.0 (1069.9) (902.5)Russian Federation & C.I.S 15.5 22.1 347.0 597.7 (331.5) (575.6)United States of America 780.9 1119.2 1524.9 908.3 (744.0) 210.9Arab countries 1318.2 1345.6 2490.3 2458.5 (1172.1) (1112.9)Asian countries (Non Arab) 1028.0 1035.6 2827.2 2760.8 (1799.2) (1725.2)African countries (Non Arab) 125.6 111.7 140.1 143.6 (14.5) (31.9)Australia 3.7 3.8 62.5 87.2 (58.9) (83.4)Other countries & regions 181.4 196.3 1102.0 1283.4 (920.6) (1087.2)Source: Central Bank of Egypt* Including in-kind grants and loans.** Provisional.*** Including exports & imports of free zones.

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(5/4) Regional Distribution of Exports and Imports

July/SeptemberProceeds of Exports Payments for Imports* Trade Balance

End of

Minimum

Maximum

Weighted average

Second: Market Rates Buy Sell Buy Sell

US Dollar 604.55 607.48 608.01 611.04

Euro 751.52 755.22 781.53 785.67

Pound Sterling 939.71 944.39 982.78 987.98

Swiss Franc 625.57 628.93 646.68 650.31

100 Japanese Yen 761.11 765.09 780.09 784.38

Saudi Riyal 161.20 161.99 162.12 162.93

Kuwaiti Dinar 2151.19 2165.48 2162.57 2174.12

UAE Dirham 164.57 165.41 165.51 166.38

Chinese Yuan 95.09 95.56 96.74 97.24

Source : CBE daily exchange rates

The interbank Rates started at 23/12/2004

(In piasters per foreign currency unit)

(5/5) Average Foreign Exchange Rates

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606.20

605.90

June 2012 September 2012

605.80 609.25

609.60

609.39

First: Interbank Rates US$

(US$ mn)End of

%Value (-)%Value%Value1.0335.4100.034719.9100.034384.5Total External Debt **

0.9292.791.531775.391.531482.61- Medium & Long term debt :(3.3)(357.0)30.610626.331.910983.3 Rescheduled bilateral debt +

(1.2)(78.2)18.96576.419.36654.6 ODA(6.4)(278.8)11.74049.912.64328.7 Non-ODA3.3165.715.15239.914.75074.2 Other bilateral debt2.7107.311.74068.011.53960.7 Paris club countries5.258.43.41171.93.21113.5 Other countries2.911.71.2416.71.2405.0 Suppliers & buyers Credits2.6288.232.711356.332.211068.1 International organizations(9.5)(275.5)7.52625.28.42900.7 Egyptian bonds and notes50.0500.04.31500.02.91000.0 Long- term deposits (78.8)(40.4)0.110.90.251.3 Private sector (Non guaranteed)1.542.78.52944.68.52901.92- Short term debt :3.229.32.7943.02.7913.7 Deposits0.713.45.82001.65.81988.2 Other Facilities

Source: Loans & External Debt Department- CBE* Provisional.** The difference from World Bank data is in short-term debt.+ According to the agreement signed with Paris club countries on 25/5/1991

(5/6) External Debt by Type

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June 2012 September 2012* Change

(US$ mn)

ChangeEnd of

(-)%Value%Value335.4100.034719.9100.034384.5Total467.544.615486.343.715018.8US dollar **(1.5)0.3122.90.3124.4Canadian dollar(6.3)0.287.10.393.4Australian dollar(15.2)1.4475.71.4490.9Swiss franc4.40.5172.10.5167.7Pound Sterling

(36.4)12.54343.712.74380.1Japanese yen0.40.397.00.396.6Danish krone0.10.04.30.04.2Norwegian krone1.00.123.10.122.1Swedish krona58.46.62281.36.52222.9Kuwaiti dinar9.40.281.00.271.6Saudi riyal1.70.123.30.121.6UAE dirham

100.124.48483.724.48383.6Euro(296.6)0.8265.91.6562.5Egyptain Pound48.48.02772.57.92724.1SDRs

Source: Loans & External Debt Department- CBE

* Provisional.

** Including other liabilities in US $.

(5/7) Distribution of External Debt by Main Currencies

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September 2012*June 2012

Periodical Publications of the Central Bank of Egypt

Periodicity Language Name of Publication

Monthly Arabic and English 1 -Monthly Statistical Bulletin

Quarterly Arabic and English 2 -Economic Review

Every fiscal year Arabic and English 3 -Annual Report

Quarterly English 4 -External Position of the

Egyptian Economy

Note: - All publications of the Central Bank of Egypt are available on the CBE's website:

www.cbe.org.eg