EconomicReview 2006 2007-Vol 3 Eng

CENTRAL BANK OF EGYPT
ECONOMIC REVIEW
Vol. 47 No. 3
2006/2007
Research, Development and Publishing Sector

This Review, issued in Arabic and English by the Research,
Development and Publishing Sector, focuses on economic developments in
ARE and in the world and presents specialized studies of relevance. Opinions
expressed do not necessarily reflect those of the Bank.
Contents
Page
Major Monetary and Financial Indicators
Domestic Developments
Overview ………………………………………………………………. …
1- Developments and Growth
1/1: GDP ………………………………………………………………
1/2: GDP by Expenditure……………………………………..………..
1/3: Inflation ……………....…………………………………………..
2- Monetary and Banking Developments
2/1: Monetary and Banking Policy and Monetary Aggregates ………..
2/2: Banking Developments …………………………………………..
3- Stock Exchange
3/1: Shares Market ……………………………………………………
3/2: Bonds Market ……………………………………………………
3/3: Mutual Funds …………………………………………………….
4- Public Finance and Domestic Public Debt

4/1: Consolidated Fiscal Operations of the General Government ……
4/2: Domestic Public Debt …………………………………………..
5- External Transactions
5/1: Foreign Exchange Market ………………………………………
5/2: Balance of Payments ……………………………………………
5/3: International Finance ……………………………………………
6- Tourism
6/1: Tourists …………………………………………………………
6/2: Tourist Nights ……………………………………………………
Annex
Statistical Section ...……………………………………………………..

Major Monetary and Financial Indicators
July/March
2005/2006 2006/2007
GDP (LE bn)

GDP in Market Prices 454.2 520.2
Annual Growth Rate (%) 12.9 14.5
GDP at Factor Cost 321.0 343.2
Annual Growth Rate (%) 6.7 6.9
GDP by Sector at Factor Cost (%)

A) Productive Sectors 5.2 6.3
Of which:
Construction and Building 12.7 15.5
Manufacturing (Oil Refining & Others) 6.2 6.9
Extractions (Oil, Gas & Others) 19.2 5.0
Agriculture, Irrigation and Fishing 3.0 3.4
B) Service Sectors 6.3 7.6

Of which:
Suez Canal 8.9 16.0
Communications 9.5 13.8
Wholesale and Retail Trade 7.4 8.5
Financial Intermediaries & Supporting Services 5.1 6.9
Price Index
- Change in Consumer Price Index (urban)
2.8 8.1
(99/2000 = 100)
- Change in Wholesale Price Index (99/2000 =100) 0.4 9.8
July/March
2005/2006 2006/2007
Monetary Survey (LE bn)
End of period
Domestic liquidity (M2) 534.7 610.5

Growth rate (%) 8.3 8.9
Reserve money 112.2 126.5
Money supply (M1) 103.3 123.6
Currency in circulation / Money Supply (%) 68.0 67.4
Banking System Foreign Assets, of which 215.9 283.3
CBE Foreign Assets 127.0 147.4
Banking System Foreign Liabilities, of which 84.3 84.2
CBE Foreign Liabilities 66.1 64.8
Total Deposits with Banks (excl. CBE ) 552.3 594.1
In Local Currency 393.4 417.0
In Foreign Currencies 158.9 177.1
Foreign Currency Deposits/Total Deposits (%) 28.8 29.8
Total Lending and Discount Balances Extended by
Banks (excl. CBE ), of which: 315.2 342.5
To Government and Public Economic Authorities 21.1 25.3
To Business Sector (Public and Private) 241.5 256.1
Portfolio of Securities and TBs with banks (excl.
196.4 180.9
CBE), of which:
TBs and Government securities 123.2 108.4
Loans/Deposits with Banks (%) 57.1 57.7
Investment in Securities, TBs and Equity
Participation/ Deposits (%) 35.6 30.5
July/March
Annual Discount and Interest Rates (%) 2005/2006 2006/2007
End of Period
CBE lending and discount rate 9.00 9.00
CBE Overnight Deposit and Lending Rates
Deposit 8.25 8.75
Lending 10.25 10.75
Interest rate on 3-month deposits 6.2 6.2
Interest rate on one year or less loans 12.6 12.7
Average interest rate on 91 day TBs 8.4 8.3
July/March
2005/2006 2006/2007
End of Period
Average US Dollar Exchange Rate

PT per US Dollar
Announced by the CBE
- Market Rates (Buy) 573.7 569.3
- Weighted Average Interbank Rates 574.7 569.7
2006/2007
Consolidated Fiscal Operations of Estimates for Actual
the General Government FY July/March
LE bn
- Total Revenues 190.4 122.8

- Total Expenditures 237.1 143.3
Cash Deficit / Surplus 46.7 20.5
Net Acquisition of Financial Assets 8.7 8.6
Overall Deficit / Surplus 55.4 29.1

- Cash Deficit (Surplus)/GDP (%) 6.6 2.8
- Overall Deficit / GDP (%) 7.9 4.0
- Expenditure / GDP (%) 33.7 19.6
- Revenues / GDP (%) 27.1 16.8
Total Financing 55.4 29.1
- Domestic finance 60.8 27.4
Banking 35.3 -0.3
Non-banking 25.3 25.9
Net credit and debit liabilities - 1.8
- Foreign borrowing -5.1 -1.4
- Arrears - -0.5
- Others -3.3 -0.9
- Revaluation Differences 0.0 -0.5
- Net Privatization Proceeds 3.0 0.1
- Difference between Treasury Bills Face Value
- -0.7
and Present Value
- Discrepancy 0.0 5.6
End of End of
Domestic Public Debt
June 2006 March 2007
- Government Domestic debt 387.7 468.3
- Public Economic Authorities Debt 47.4 46.3
- NIB Debt 158.4 104.9
US$ bn
Balance of Payments July/March
2005/2006 2006/2007
1.9 3.3
Balance of Current Account & Transfers
Trade balance (8.2) (10.4)
Merchandise exports 13.5 15.9
Oil and its products % 55.3 46.1
Others % 44.7 53.9
Merchandise Imports (21.7) (26.3)
Intermediate Goods % 27.9 27.0
Investment Goods % 25.0 25.1
Consumer Goods % 11.7 13.5
Fuel, Raw Materials and Others % 35.4 34.4
Services Balance 6.0 8.7
Receipts 12.9 15.1
Of which:
Transportation % 28.2 31.0
Travel % 43.2 41.0
Investment income % 10.9 14.6
Payments (6.9) (6.4)
Of which:
Transportation % 12.1 14.0
Travel % 17.2 21.7
Investment income % 16.0 20.7
Transfers 4.1 5.0
Official % 10.5 13.0
Private % 89.5 87.0
Capital and Financial Account 1.8 (0.2)
Overall Surplus (Deficit) 3.3 3.1
Outstanding External Debt at End of March 28.9 28.7
Domestic Developments
-1-
Overview
The Egyptian economy continued its strong performance during July/March

2006-2007. Real GDP growth reached about 6.9 percent* during the statement
period, against 6.7 percent during the same period a year earlier. The main
contributors were the manufacturing sector (1.3 percent); wholesale and retail trade
(1.0 percent); construction and building (0.7 percent); extractions (0.5 percent);
and agriculture, irrigation and fishing (0.5 percent). The private sector has played
an increasingly important role in the development process, accounting for some 4.9
percent of the real GDP during the reporting period. This was ascribed mainly to
the noticeable rise in this sector’s investments which represented almost 67 percent
of total implemented investments.
As for the monetary policy and its role in achieving price stability, the MPC
decided in its two meetings dated November 2 and December 14, 2006, to raise the
CBE overnight deposit and lending rates by 0.50 percent and 0.25 percent,
respectively, to 8.75 percent and 10.75 percent. The aim was to contain the
inflationary pressures, driven by accelerating economic growth; the second round
effects of supply shocks set off by the outbreak of the avian flu; and oil subsidy
cuts.
However, in its subsequent periodical meetings, the MPC kept the key policy
rates unchanged, in light of the abatement of inflation. The annual inflation rate
reached a stable level, ranging between 12.4 percent and 12.8 percent, according to
the CPI (urban) during January/March 2007. The MPC was of the view that this
rate started to level off and the effects of supply shocks were phasing out. This was
further evidenced by the downward trend in annual inflation during April, May and
June 2007 (during preparation of this Review), standing at 8.5 percent in June
2007.
In order to maintain an appropriate level of monetary stability, the CBE

continued to use its open market operations (LE 163.7 billion at end of March
_____________________________________
∗ According to the data of the Ministry of State for Economic Development
-2-
2007) to absorb the excess liquidity at the banking system. A large part of this
excess came from the substantial increase in foreign exchange inflows during the
period.
Domestic liquidity amounted to LE 610.5 billion at end of March 2007, up

by LE 50.1 billion or 8.9 percent during the period. This was an outcome of the
expansionary effect of net foreign assets and domestic credit. The former
augmented by the equivalent of LE 65.7 billion; and the latter rose by LE 13.0
billion. Other items (net) declined by LE 28.6 billion.
As for credit and banking developments, banks' aggregate financial

position reached LE 879.6 billion at end of March 2007, with a rise of 15.5 percent
during the period against 11.1 percent during the corresponding period. Likewise,
deposits increased by LE 25.3 billion or 4.4 percent during the period, to post
LE 594.1 billion at end of March 2007. LE deposits constituted two thirds of total
deposits, which reflected higher propensity for local currency, given the stability
and appreciation of the Egyptian pound. Banks' balances of lending and discount
(excluding the Central Bank) increased by LE 18.5 billion or 5.7 percent, to reach
LE 342.5 billion. Over three fourths of this increase were in foreign currency
lending and discount balances, which rose by the equivalent of LE 14 billion. The
major recipient of credit facilities was the private sector (business and household
sectors), accounting roughly for 73 percent of the total. This signified the
increasing investments of this sector and the mounting importance of its role in
development, especially within the context of the efforts made to create a favorable
investment climate.
The ongoing economic and banking reforms led to the stability of the
foreign exchange market, as they strengthened foreign investors' confidence in
the Egyptian economy. Consequently, foreign investment stepped up, leading to
more foreign currency inflows into Egypt. During the statement period, forex
market transactions remarkably improved as compared with the period of
comparison. As such, market resources grew by US$ 9.7 billion, reaching US$
32.5 billion, exceeding the rise of US$ 6.3 billion in utilizations that totaled US$
24.4 billion. Thus, market transactions unfolded a surplus of US$ 8.1 billion during
the period under review (against US$ 4.8 billion). In addition, the Egyptian pound
-3-
appreciated vis-à-vis the US dollar by 1.08 percent during the period, as the
average US dollar exchange rate (buy) dropped to LE 5.6925 at end of March
2007, from LE 5.7523 at end of June 2006. Net international reserves rose by US$
3.4 billion during the period to US$ 26.3 billion at end of March 2007, and further
to US$ 29.6 billion at end of June 2007 (during the printing of this Review).
The stock market performance revealed that market capital rose by 21.9
percent, to reach LE 547.9 billion or 75.1 percent of GDP in March 2007. The
most active sector was the finance, insurance and real estate. The ratio of its
market capital to total market capital rose from 26.7 percent to 31.2 percent.
Foreigners' transactions on the Egyptian stock market (in both LE and US
dollar) were active during the statement period. Foreigners' net purchases reached
LE 20.3 billion, against LE 3.4 billion, denoting a larger increase in the value of
their purchases (LE 59.0 billion) than their sales (LE 38.7 billion), compared with
LE 56.3 billion and LE 52.8 billion, respectively.
As for the execution of the consolidated fiscal operations of the state

budget sector (the administrative system, local administration and service
authorities), total revenues reached some LE 105.3 billion and total expenditures
some LE 127.8 billion. This gave rise to a cash deficit of about LE 22.5 billion,
and when adding the net acquisition of financial assets (about LE 6.5 billion), the
overall deficit will reach some LE 29.0 billion or 4 percent of GDP during the
period under review. Around 93.0 percent was financed by subscriptions of
individuals and corporations for treasury bills and bonds (LE 22.7 billion); loans
from insurance funds (LE 4.1 billion) and NIB (LE 0.2 billion); and privatization
proceeds of LE 0.1 billion during the period. The remaining deficit was financed
by the government, helped by activating the Treasury Single Account (TSA)
system at the Central Bank (around LE 15.7 billion), alongside other sundry
financing sources. Eventually, domestic and foreign repayments totaled LE 21.9
billion during the period under review.
Against this backdrop, gross domestic public debt rose by about LE 26.0
billion during July/March 2006-2007, to reach LE 619.5 billion at end of March
2007. Of this amount, government debt represented 75.6 percent or 64.2 percent of
GDP.
-4-
Concerning external transactions, the BOP realized an overall surplus of

US$ 3.1 billion during July/March 2006/2007 (against US$ 3.3 billion during the
period of comparison). This was an outcome of the US$ 3.3 billion surplus on the
current account, resulting from the higher surplus on services and the rise in net
unrequited transfers, on the one hand; and the widening of the trade deficit, on the
other. The trade deficit of US$ 10.4 billion (a rise of 25.7 percent) was attributed to
the increase of 21.0 percent in merchandise imports, to US$ 26.3 billion, because
of the rise in non-oil imports by 30.3 percent and the decline in oil imports by 23.7
percent. Meanwhile, merchandise exports rose by 18.1 percent, recording US$ 15.9
billion, as a result of the surge in non-oil export proceeds by 42.4 percent and the
decline in oil exports by 1.5 percent. Services surplus scaled up by 43.5 percent,
driven by a rise of 17.1 percent in invisible receipts. This was ascribed to the
increase in travel receipts (with a climb of 11.1 percent in the number of tourist
nights). Transport receipts and investment income also increased. Likewise, net
unrequited transfers went up by 21.5 percent, due to the rise in private transfers,
mainly the remittances of Egyptians working abroad. As to the capital and
financial account, net outflows of US$ 247.4 million were realized (against net
inflows of US$ 1.8 billion during the period of comparison). The doubling of FDI
in Egypt was essentially behind this increase, as it unfolded net inflows of over
US$ 9.0 billion during the reporting period.
Regarding international finance, resource inflows rose by US$ 1.8 billion,
standing at US$ 9.6 billion during July-March 2006-2007. This was mainly due to
the increase in net FDI in Egypt.
The balance of external debt denominated in US$ (mostly owed by the
public sector) amounted to US$ 28.7 billion at end of March 2007, with a retreat of
US$ 0.9 billion, compared with the end of June 2006. This decrease was attributed
to the net repayment of loans and facilities of about US$ 1.5 billion, on one hand,
and the appreciation of the exchange rates of most currencies of borrowing by US$
0.6 billion, on the other.
Due to the US$ 625.9 million decrease in external debt service (principal
and interest payments), its ratio to current receipts (including private and official
transfers in the BOP current account) improved to 5.5 percent during the period
under review, against 8.5% during the period of comparison. Likewise, the ratio of
debt service to total export proceeds of goods and services dropped from 9.9
percent to 6.4 percent, owing to higher exports of goods & services, as well as
transfers, by about 18.1 percent.
-5-
1- Development and Growth
1/1: Gross Domestic Product
Egypt's economic performance continued to improve during July/March

2006/2007. Real GDP at market price grew, according to the Ministry of State for
Economic Development, by 6.9 percent to LE 365.5 billion during the period
under review, against 6.5 percent and LE 342.0 billion during the period of
comparison. GDP at factor cost and constant prices amounted to LE 343.2 billion
at a growth rate of 6.9 percent against 6.7 percent during July/March 2005/2006.
GDP Growth rate at Factor cost (Constant Prices)July/March

%
8
7
6
5
4
3
2
1
0
2002/2003 2003/2004 2004/2005 2005/2006 2006/2007
The productive sectors contributed 3.1 percentage points to real GDP at

factor cost (6.9 percent). The manufacturing sector was the main contributor (1.3
percentage points), followed by construction and building (0.7 percentage point).
As for the services sectors, they shared with 3.8 percentage points in the GDP (of
which, the sectors of wholesale trade and the Suez Canal posted 1.1 and 0.5
percentage points).
-6-
Share of Production and Services Sectors in Real GDP at Factor Cost,

July/March 2006/2007
(%)
2005/06 2006/07
Growth Growth Relative Contribution Ratio
Rate Rate Weight (percentage point)
GDP 6.7 6.9 100
Productive sectors, of which: 5.2 6.3 49.5 3.1
Agriculture, irrigation and fishing 3.0 3.4 15.2 0.5
Extractions (oil, natural gas and
others) 19.2 5.1 8.5 0.4
Manufacturing (oil refining and
others) 6.2 6.9 18.6 1.3
Construction and building 12.7 15.5 5.0 0.8
Services sectors, of which: 6.3 7.6 50.5 3.8
Wholesale and retail trade 7.4 8.5 12.3 1.0
Financial intermediaries and
supporting services 5.1 6.9 5.5 0.4
Transportation and storage 6.9 7.8 5.0 0.4
Suez Canal 8.9 16.0 3.6 0.6
Restaurants and hotels 3.8 12.9 3.5 0.4
Communications 9.5 13.8 2.4 0.3
Source: Ministry of State for Economic Development
As the private sector continued to broaden its role in the development

process, real GDP growth rate of this sector remained on the rise, reaching 7.2
percent during July/March of FY 2006/2007 (against 5.8 percent in the same
period a year earlier). The private sector accounted for about 4.9 percentage points
of the real GDP growth during the period under review, mostly generated by the
sectors of manufacturing; wholesale and retail trade; construction and building;
and agriculture, irrigation and fishing.
-7-
Grow th rate of public sectors output,by sector Grow th rate of Private sectors output,by
(percentage point) July/March 2006/2007 sector(percentage point)Jjuly/March2006/2007
Manufactur
ing
Industries,
Others, Others; 3.0 1.7
Suez
2.6
Canal 1.6 Wholesalً
e & Retail
Trade
١٫٥
Extractions Constructi
General , on &
Governme 1.1 Building,
nt 1.0 1.0
Real GDP Growth Rates of Public and Private Sectors

July/ March 2006/2007
(%)
2005/2006 2006/2007
Growth Rate Growth Rate
Public Private Public Private
GDP 8.6 5.8 6.3 7.2
Productive Sectors, of which: 5.6 4.0 5.3 6.5
Agriculture, irrigation and fishing 3.3 3.0 5.3 3.4
Extractions (oil, natural gas and others) 19.6 17.1 5.0 5.6
Manufacturing (oil refining and others) 8.4 5.8 5.4 7.1
Construction and building 12.4 12.8 10.2 16.2
Services Sectors, of which: 6.7 8.2 7.0 7.9
Wholesale and retail trade 5.3 7.5 7.0 8.6
Financial intermediaries and supporting
services 6.1 3.4 7.0 6.6
Transportation and storage 6.5 7.0 7.1 7.9
Suez Canal 8.9 0.0 16.0 0.0
-8-
1/2: GDP by Expenditure
The better economic performance during the statement period was supported
by a rise in domestic and external demand. Concerning domestic demand, the
private consumption continued to grow at a high rate of 10.5 percent during the
period under review (against 12.6 percent), reaching LE 368.2 billion, and
representing 70.8 percent of GDP. Total investments also increased by 37.4
percent (against 21.5 percent), standing at LE 107.2 billion or 20.6 percent of
GDP. This increase (about 80 percent) was concentrated in private investments
which surged by 48.4 percent (against 27.9 percent), reaching LE 71.4 billion or
66.6 percent of total implemented investments. This lifted up the private sector’s
share in GDP to 67.3 percent. The rise in the investments of this sector was
accompanied with larger credit to the private business sector.
GDP by Expenditure
During July/March
(Current prices)
Value Growth Rate
(LE bn) (%)
2005/2006 2006/2007 2005/2006 2006/2007
1- GDP at Market Prices (2+5-6) 454.2 520.2 12.9 14.5
2- Gross Domestic Expenditure (3+4) 467.8 537.8 13.7 15.0
3- Final Consumption 389.8 430.6 12.2 10.5
- Public 56.5 62.4 9.9 10.4
- Private 333.0 368.2 12.6 10.5
4-Gross Capital Formation 78.0 107.2 21.5 37.4
- Public 29.9 35.8 12.4 19.7
- Private 48.1 71.4 27.9 48.4
5- Exports of Goods and Services 139.0 163.7 12.3 17.8
6- Imports of Goods and Services 152.6 181.3 14.7 18.8
7-Gross Domestic Savings (1-3) 64.4 89.6 17.1 39.1
8-Domestic Resources Gap (5-6 ) = (7-4) (13.6) (17.6)
-9-
The stronger economic performance was also spurred by a growth of 17.8

percent in exports of goods and services during the period (against 12.3 percent
during the period of comparison), reaching LE 163.7 billion. Despite the higher
rate of increase in the exports of goods and services, it is still outpaced by that of
imports of goods and services (18.8 percent, against 14.7 percent), thereby posting
LE 181.3 billion. This in turn led to widening the domestic resources gap; albeit to
limited degree because of the mitigating effect of the higher growth rate of gross
domestic saving.
٢٠٠ Resources Gap

١٧٥
١٥٠
١٢٥
١٠٠
٧٥
٥٠
٢٥
٠
٢٥-
٥٠-
٢٠٠٣/٢٠٠٢ ٢٠٠٤/٢٠٠٣ ٢٠٠٥/٢٠٠٤ ٢٠٠٦/٢٠٠٥ ٢٠٠٧/٢٠٠٦
Domestic Resqurces Gap Exports Imports
1/3: Inflation
According to CAPMAS, CPI- based inflation rate (urban) accelerated to 8.1
percent during July/March 2006/2007, against 2.8 percent during the same period
of the previous FY. The rise in inflation was attributed to the rapid economic
growth, the second round effects of the avian flu supply shock and the oil subsidy
cuts of July 2006.
The rise in prices was mainly pronounced in the group of foodstuffs and
beverages, primarily due to the price hikes in poultry and eggs under the influence
of the avian flu. Likewise, red meat prices went up because of the higher demand
thereon, triggered by the avian flu, and the concomitant decline in supply due to
the foot and mouth and lumpy skin diseases. This upward trend was observed as
well in the prices of the two groups of housing, water, electricity and fuel; and
transportation, affected by subsidy cuts in some oil products.
- 10 -
Yet, the rise in inflation could have been larger, but for a number of factors.
First, the LE exchange rate remained stable and increased vis-à-vis the US dollar
and some other currencies during the period. Thus, the LE value increased by 1.1
percent versus the US dollar in the interbank market. Second, the Central Bank
played a key role in sterilizing the effect of excess liquidity resulting from growing
foreign currency inflows.
On monthly basis, inflation rates trended downwards during the last months
of the period, a matter that signified the phasing out of the price increases related
to supply shocks. This has been one of the reasons that have prompted the
Monetary Policy Committee (MPC) on March 22, 2007 to refrain from raising the
key interest rates, deciding rather to maintain the overnight deposit and lending
rates at 8.75 percent and 10.75 percent, respectively.
CPI-based Inflation Rates (Urban) during July/March 2006/2007

(1999/2000=100)
(%)
July/March
Main CPI Groups Weights
2005/2006 2006/2007
General Index 100.0 2.8 8.1
Food and non-alcoholic beverages 38.9 4.2 9.0
Clothing & footwear 10.4 0.1 4.5
Housing, water, electricity & fuel 11.7 2.2 5.7
Furnishings, household equipment &
routine maintenance 4.9 3.6 4.8
Health 4.6 3.9 2.9
Transport 5.6 0.7 9.8
Communications 2.0 -1.1 1.2
Culture & recreation 5.9 1.8 19.5
Education 5.7 4.6 11.1
Hotels, cafes and restaurants 2.5 0.0 8.5
Miscellaneous goods and services 5.0 0.8 11.3
Source: CAPMAS
- 11 -
Sugar,jam,honey, Relative Weights of Food (37.5%)

chocolate and
Other food products
confectionery
1.9%
1.8%
Pulses Bread and cereals
0.6% 5.3%
Vegetables
3.7%
Fruit
Meat
3.1%
10.7%
Oils and fats

2.7%
Milk,cheese and
eggs Fish and seafood
5.1% 2.6%
Hereunder are the main CPI groups that showed a rise in their price indices,
according to their relative weights, rate of increase, and the spillover effects on the
goods and services of other groups:
Food and non-alcoholic beverages increased by 9.0 percent against 4.2
percent, as a result of the rise in the prices of the food group, especially:
- Meat: as a main result of the high prices of poultry due to weak supply,
because of the avian flu. In addition, the foot and mouth and lumpy skin
diseases reduced the supply of meat.
- Fish and seafood: mainly because of the increase in fresh fish prices as a
second round effect of the avian flu.
- Vegetables: primarily because of the higher prices of onion, potatoes and
tomatoes. The rise of onion prices is attributed to seasonality. The higher
prices of potatoes and tomatoes are ascribed to larger volume of exports.
The exports of potatoes increased to US$ 8.3 million during the period
(against US$ 1.2 million), while those of tomatoes increased to US$ 1.9
million (against US$ 0.3 million).
- 12 -
- Fruits: as a main result of the surge in their exports to US$ 27.3 million
during the period (up from US$ 17.9 million during the corresponding
period).
- Pulses: as a main result of the higher prices of beans and lentils.
Annual Inflation Rate of Food and Non-Alcoholic Beverages

Relative Weight (38.9%)
%
20.0
15.0
10.0
5.0
0.0
-5.0
-10.0
July2006 August Sept. Oct. Nov. Dec. Jan.2007 Feb. March
Food&Non-alcoholic Beverages Meat

Fish and seafood Milk,cheese and eggs
- Housing, water, electricity & fuel increased by 5.7 percent (against 2.2
percent) mainly because of the higher prices of electricity, gas and fuel, up
by 7.4 percent, following the reduction of energy subsidies.
- Transportation increased by 9.8 percent (against 0.7 percent) as a chief

result of the rise in private transportation expenditure by 16.4 percent
(against 1.1 percent) and also transportation services by 6.9 percent (against
nil) under the impact of fuel price hikes.
- Culture & recreation increased by 19.5 percent (against 1.8 percent),

mainly due to the higher prices of package holidays, up by 26.7 percent
(against 2.4 percent); and newspapers, books, and stationery by 21.1 percent
against nil.
- 13 -
- Education increased by 11.1 percent (against 4.6 percent) as a result of the

rise in the secondary education prices by 16.8 percent, higher education by
14.9 percent and primary education by 5.0 percent.
- Hotels, cafes and restaurants increased by 8.5 percent (against nil).
- Communications increased by 1.2 percent (against a decline of 1.1 percent)

principally because of the higher prices of postal office services, up by
39.9 percent (against 20.2 percent).
The CPI (Urban) & Main Groups (1999/2000=100)
300.0
250.0
200.0
150.0
100.0
50.0
0.0
July2006 August Sept. Oct. Nov. Dec. Jan.2007 Feb. March
All Items Food&Non-Alcoholic Beverages

Electricity,gas and other fuels Transport
Communications
- 14 -
2- Monetary and Banking Developments

2/1: Monetary and Banking Policy and Monetary Aggregates
During July/March 2006/2007, the CBE continued its pursuit to realise the
price stability objective of the monetary policy, through managing short-term
interest rates. The MPC decided (in its two meetings dated 2 Nov. and 14 Dec.
2006) to raise the CBE overnight deposit and lending rates by 0.50 percent and
0.25 percent, respectively, to 8.75 percent and 10.75 percent. The MPC's decision
aimed to contain the inflationary pressures ensuing from the acceleration of
economic growth, the second round effects of avian flu supply shocks, and the oil
subsidy cuts.
The MPC decided in its subsequent periodical meetings to keep the key
policy rates unchanged. The Committee's decision was taken in response to the
stability of inflation (CPI-based) that ranged between 12.4 percent and 12.8 percent
annually in January/March 2007. Moreover, the MPC noted that these rates have
reached a peak and that the supply shock effects started to level off, a fact that was
proven by the deceleration in the annual inflation rates in April and May of 2007
(during the printing time )
In order to absorb the excess liquidity at the banking system and to create a
favorable environment for management of short-term interest rates, the CBE
resorted to open market operations (OMOs). The outstanding balance of these
operations amounted to LE 163.7 billion at end of March 2007 (outright sales
registered LE 75.1 billion, and accepted deposits LE 88.6 billion), against LE 93.7
billion at end of June 2006 (outright sales represented LE 37.3 billion, and
accepted deposits LE 56.4 billion).
The following graph shows the developments in the overnight interbank

rates and the overnight deposit and lending rates from 2006 until April 2007.
- 15 -
Overnight Interbank and Policy Rates

(%)
11.00
10.50
10.00
9.50
9.00
8.50
8.00
7.50
7.00
30-Nov-06
28-Feb-06
28-Feb-07
31-Jan-06
30-Apr-06
31-Aug-06
30-Jun-06
31-Jul-06
30-Sep-06
31-Oct-06
31-Dec-06
31-Jan-07
30-Apr-07
31-Mar-06
31-May-06
31-Mar-07
Overnight Interbank Deposit Facility Lending facility
2/1/1: Reserve Money
Reserve money rose by LE 10.4 billion or 9.0 percent during the reporting
period, against LE 11.1 billion or 11.0 percent. The rise was an outcome of the
increase in both currency in circulation outside the CBE by LE 9.6 billion or 12.2
percent, and banks’ local currency deposits at the CBE by LE 0.8 billion or 2.2
percent.
- 16 -
Reserve Money and Counterpart Assets

(LE mn)
Balances Change during July/March
at End of 2005/2006 2006/2007
March Value % Value %
2007
a- Reserve Money 126474 11080 11.0 10424 9.0
- Currency in circulation
outside the CBE 88195 7217 10.7 9591 12.2
- Banks' deposits in local
currency 38279 3863 11.4 833 2.2
b- Counterpart Assets 126474 11080 11.0 10424 9.0
Net Foreign Assets 82617 23565 63.2 21315 34.8
Foreign Assets 147426 18259 16.8 17949 13.9
Gold 6429 - 0.0 - 0.0
Foreign securities 97896 16429 98.6 49543 102.5
Foreign currencies 43101 1830 2.1 (31594) (42.3)
Foreign Liabilities 64809 (5306) (7.4) (3366) (4.9)
Net Domestic Assets 43857 (12485) (19.6) (10891) (19.9)
Claims on the
Government (Net) 113437 (4298) (3.5) (618) (0.5)
Claims, of which: 187580 (45886) (20.2) 15772 9.2
Government securities 164761 (39616) (19.0) - 0.0
Deposits 74143 (41588) (39.6) 16390 28.4
Claims on Banks (Net) 59651 27040 (123.0) 58633 5759.6
Claims 77738 9413 81.3 60326 346.5
Foreign currency deposits 18087 (17627) (52.5) 1693 10.3
Net Balancing Items -129231 (35227) 96.5 (68906) 114.2
Assets 46702 (492) (1.0) 4959 11.9
Liabilities, of which: 175933 34735 40.6 73865 72.4
Equities 2544 0 0.0 31 1.2
Provisions 49 (3) (1.0) (1) (2.0)
- 17 -
Counterpart assets of reserve money augmented as an outcome of the rise in

net foreign assets by the equivalent of LE 21.3 billion or 34.8 percent and the
decrease in net domestic assets by LE 10.9 billion or 19.9 percent. The pickup in
net foreign assets at the CBE was a result of the growth in its foreign assets by the
equivalent of LE 17.9 billion and a decline in its obligations by LE 3.4 billion
worth. The increase in foreign assets was attributed to larger foreign currency
inflows to the CBE during the period.
The retreat in the CBE’s net domestic assets was mainly ascribed to an
increase in the negative balance of other items (net) by LE 68.9 billion
(unclassified assets and liabilities (net), capital accounts and OMOs). In addition,
there was a decrease of LE 0.6 billion in the CBE’s net claims on the government,
brought about by a rise in government claims thereto by LE 15.8 billion, and
government deposits therewith by LE 16.4 billion (following the transfer of the
accounts of the government entities and public economic and services authorities
from banks to the Single Treasury Account [STA] at the CBE, by virtue of Law
No. 139 for 2006). On the other hand, the CBE’s net claims on banks rose by LE
58.6 billion as an outcome of the increase in its claims thereon by LE 60.3 billion
(mostly in foreign currencies) and the rise in their foreign currency deposits at the
CBE by LE 1.7 billion worth.
2/1/2: Banknote Issue
Banknote issue (including subsidiary coins) went up by LE 10.1 billion or

12.7 percent during July/March 2006/2007, against LE 7.4 billion and 11.0
percent, to reach LE 89.3 billion at end of March 2007. Consequently, the balance
of currency in circulation outside the CBE increased by LE 9.6 billion or 12.2
percent, reaching LE 88.2 billion at end of March 2007.
- 18 -
Banknote Issue and Change Rates *

(LE mn)
Change during
Balance of Annual Change
At End of July/March
Banknote Issue
Value % Value %
June 2004 59922 7490 14.3
March 2005 65376 8166 14.3 5454 9.1
June 2005 67753 7831 13.1
March 2006 75190 9814 15.0 7437 11.0
June 2006 79253 11500 17.0
March 2007 89341 14151 18.8 10088 12.7
* Including subsidiary coins issued by the Ministry of Finance
A breakdown of currency in circulation outside the CBE by denomination at

end of March 2007, in comparison to end of June 2006 indicates that the relative
importance of the LE 100 note rose to 50.3 percent against 44.9 percent.
Meanwhile, the relative importance of most other denominations retreated. This
reflected individuals’ preference for this large denomination as a reflection of the
continued price increases.
Accordingly, the average value per note scaled up by 7.2 percent, reaching
LE 23.58 at end of March 2007 against LE 22.00 at end of June 2006.
- 19 -
Currency in Circulation outside the CBE*

(LE mn)
Change during
July/March
Denominations
Relative Relative
Value Value 2005/06 2006/07
Importance Importance
Total 78604 100.0 88196 100.0 10.7 12.2
Subsidiary currencies
(notes and coins) 236 0.3 256 0.3 2.7 8.5
Banknote in circulation 78368 99.7 87940 99.7 10.8 12.2
PT 25 135 0.2 147 0.2 17.8 8.9
PT 50 239 0.3 252 0.3 16.1 5.4
LE 1 540 0.7 588 0.7 12.5 8.9
LE 5 1095 1.4 1075 1.2 (6.0) (1.8)
LE 10 4215 5.4 3640 4.1 (10.7) (13.6)
LE 20 9128 11.6 8984 10.2 (9.4) (1.6)
LE 50 27737 35.3 28897 32.7 11.0 4.2
LE 100 35279 44.9 44357 50.3 23.6 25.7
* Representing the difference between banknote issue and the cash at the CBE vaults
2/1/3: Payment Systems and Information Technology
In the contexts of the reforms undertaken in the payments system, to

mitigate financial risks, as well as expedite financial transactions, and enhance the
system reliability, the following steps were taken during the reporting period:
• Concerning the real time gross settlement (RTGS) system which reduces
credit and settlement risks and facilitates banks’ management of liquidity,
the CBE in cooperation with the European Commission, has concluded a
contract with a leading international corporation specialized in this field,
on supplying the above mentioned system. Currently, plans for the coming
period are being devised to initiate the actual implementation of this
system during the second quarter of 2008.
- 20 -
• In preparation for the execution of the RTGS, an experimental operation

was made for a system connecting the RTGS with the Central Accounting
System at the CBE to enable real time control of the movement of bank
accounts. In order to connect the RTGS system with all other relevant
programs, a contract was made with a major consultation company in the
area of payment systems to recruit a managing director and a team of
experienced advisors to assist in the actual implementation of the project
according to international standards, with funding from the USAID.
Moreover, a committee was formed of experts from the banking system to
prepare the studies required for this project. Its recommendations are to be
submitted to the High Committee for Payments, with a view to following
up the project and taking the relevant decisions.
• Efforts are currently on track to modify the SWIFT system to be

compatible with the RTGS, to ensure effecting final real time settlement of
the transactions processed via SWIFT.
• The ACH system was applied to settle government finance cheques by

linking the system handling these cheques with the ACH, so as to benefit
from its advantages.
• At present, studies are being made on how to settle the transfers of foreign
currencies among local banks using the Fin-Copy service. The aim is to
benefit local banks by enabling them to settle transfers through RTGS at a
lower cost. The preparation of another study is under way to cover the
subject of settling foreign currency cheques through ACH at the CBE.
• The CBE, in cooperation with the Arab Monetary Fund, has prepared and
published the “White Book” of the A.R.E. that provides comprehensive
information about the payments in A.R.E.
- 21 -
In the area of information technology at the CBE and the banking sector,
the following developments took place:
• Completing the design of the CBE’s new website. All information and data
to be disseminated were collected from the Bank’s different departments.
Following its experimental operational phase, the website is about to be
launched. The CBE is also following up the establishment of its new
branches in Tanta and Assiut.
• Concerted efforts are being exerted, in coordination with the Ministry of

Finance, to implement a project serving the settlement of government
receipts. Automation of these transactions is being finalized, so as to shorten
the settlement duration - for the Account of the Ministry of Finance (within
the Treasury Single Account)- to two days, instead of one month under the
manual system, at the banks representing the CBE in the governorates (five
banks). The operation of this system was initiated with the participation of
three banks, while the other two banks were granted a deadline of one month
to complete the procedures of participation.
2/1/4: SWIFT Local Service and Clearing Houses Activity
Data on banking transfers under the Fin Copy-system, conducted through

the SWIFT system, showed an increase in the number of LE executed messages by
84.3 thousand transfers during the period, reaching 377.6 thousand transfers. The
value of these transfers increased by LE 383.7 billion, to reach LE 1572.6 billion at
end of March 2007.
The number of interbank dollar transactions, under the Fin Copy system,
increased to 8354, at a value of US$ 47.0 billion during July/March 2006/2007,
against 8164 transactions at a value of US$ 28.0 billion during the corresponding
period of the previous FY.
- 22 -
SWIFT Local Service Activity

(LE mn)
July/March
Change in
During 2004/05 2005/06 2006/07
(1) (2) (3) (2)-(1) (3)-(2)
First: In Local Currency
Number of messages (unit) 239899 293297 377598 53398 84301
Value of executed transfers (LE mn) 939000 1188906 1572606 249906 383700
Second: In US Dollar
Number of messages (unit) 7949 8164 8354 215 190
Value of executed transfers (US$ mn) 31224 28044 47047 (3180) 19003
Concerning the Automated Clearing House activities, the number of

exchanged cheques increased to 7.7 million, at a value of LE 253.3 billion. This
drove up the average value per cheque to LE 33.0 thousand during July/March
2006/2007, against LE 30.1 thousand during the corresponding period of the
previous FY.
.
CBE Clearing Houses Activity
Cheques Change
During Number Value
Number Value
(in thousand) (LE mn)
July/March 2005/2006 6825 205561 (2.1) 6.0
July/March 2006/2007 7670 253253 12.4 23.2
2/1/5: Domestic Liquidity and Affecting Factors
Domestic liquidity (M2) totaled LE 610.5 billion at end of March 2007, up

by LE 50.1 billion or 8.9 percent during July/March 2006/2007, against LE 40.8
billion and 8.3 percent a year earlier. Such a rise was due to the pickup in money
supply (M1) and quasi-money.
- 23 -
Domestic Liquidity Structure

(LE mn)
Change during July/March
End of March 2007 2005/2006 2006/2007
Relative
Balances Value % Value %
Importance
M2 610452 100.0 40779 8.3 50096 8.9
M1 123592 20.2 13637 15.2 14318 13.1
Money in circulation
outside the banking
system 83332 13.6 7229 11.5 9093 12.2
Demand deposits in local
currency 40260 6.6 6408 24.0 5225 14.9
Quasi- Money 486860 79.8 27142 6.7 35778 7.9
Time and Saving
Deposits in Local
Currency 340622 55.8 20332 7.2 26434 8.4
Foreign Currency
Deposits 146238 24.0 6810 5.6 9344 6.8
- Demand 22689 3.7 2907 16.0 4156 22.4
- Time and saving 123549 20.3 3903 3.8 5188 4.4
M1 rose by LE 14.3 billion or 13.1 percent, against LE 13.6 billion and 15.2
percent a year earlier, thereby reaching LE 123.6 billion, or 20.2 percent of total
domestic liquidity at end of March 2007. This increase was ascribed to a rise of
12.2 percent in money in circulation outside the banking system and 14.9 percent
in banks’ local currency demand deposits.
Quasi-money (local currency time & saving deposits and foreign currency
deposits) grew by LE 35.8 billion or 7.9 percent during the period under review,
against LE 27.1 billion and 6.7 percent, posting LE 486.9 billion or 79.8 percent of
total domestic liquidity at end of March 2007. Almost 51.0 percent of the rise was
in local currency deposits of the household sector, which went up by LE 18.2
billion or 6.7 percent to LE 291.3 billion or 60 percent of quasi-money. This
reflects higher propensity to save in the Egyptian pound, given the stability of its
exchange rate.
- 24 -
LE bn Domestic Liquidity (End of March)

700
600
500
400
300
200
100
0
2004 2005 2006 2007
Foreign currency deposits
Time & saving deposits in local currency
Demand deposits in local currency
Currency in circulation outside the banking system
Foreign currency deposits augmented by LE 9.3 billion worth or 6.8 percent,

to stand at LE 146.2 billion at end of March 2007. However, their relative
importance declined to 27.7 percent of total deposits, against 28.2 percent at end of
June 2006. Such a rise was mainly in the deposits of the private business sector
(53.2 percent), followed by the household sector's (41.7 percent).
Counterpart Assets of Domestic Liquidity

(LE mn)
End of March 2007 2005/2006 2006/2007
Relative
Balances Value % Value %
Importance
Domestic Liquidity
Counterpart Assets 610452 100.0 40779 8.3 50096 8.9
Net Foreign Assets 199039 32.6 50678 62.6 65654 49.2
- The CBE 82617 13.5 23566 63.2 21316 34.8
- Other banks 116422 19.1 27112 62.2 44338 61.5
Domestic Credit 522526 85.6 23573 5.1 12994 2.6
Government (net) 181583 29.7 11025 6.9 (2548) (1.4)
Public business sector 23642 3.9 (2741) (7.3) (9247) (28.1)
Private business sector 259277 42.5 6729 2.9 19939 8.3
Household sector 58024 9.5 8560 20.7 4849 9.1
Other Items (Net) -111113 -18.2 (33472) 62.2 (28552) 34.6
- 25 -
The expansionary effect on domestic liquidity during the period was

primarily exercised by net foreign assets, as they recorded a higher rise than
domestic assets. However, this rise was curbed by the fall in net domestic assets,
due to the pickup in the negative balance of net balancing items.
The Relative Distribution of Counterpart The relative distribution of Counterpart

Assets of Domestic Liquidity Assets of Domestic Liquidity
(End of Mar 2007)
(End of June 2006)
32.6%
23.8%
67.4%
Net Foreign Assets
76.2% Net Foreign Assets
Net Domestic Assets
Net Domestic Assets
Net foreign assets surged by LE 65.7 billion worth to LE 199.0 billion at

end of March 2007, due to the increase in net foreign assets of banks by LE 44.4
billion worth and the CBE by LE 21.3 billion worth. The increase was mainly
attributed to the surge in foreign currency inflows during the period.
Net Foreign Assets of the Banking System

(LE mn)
Change in Net
June 2006 March 2007 During July/March
Foreign Foreign Foreign Foreign
Net Net 2005/06 2006/07
Assets Liabilities Assets Liabilities
Total 218982 85597 133385 283279 84240 199039 50678 65654
CBE 129477 68176 61301 147426 64809 82617 23566 21316
Other
banks 89505 17421 72084 135853 19431 116422 27112 44338
Net domestic assets fell by LE 15.6 billion or 3.6 percent during the period.
Such a decline resulted from a rise in the negative balance of net balancing items
by LE 28.6 billion or 34.6 percent, to register LE 111.1 billion at end of March
2007. This is in addition to a step-up of LE 13.0 billion or 2.6 percent in domestic
credit, to reach LE 522.5 billion.
- 26 -
The increase in domestic credit reflected mainly the marked expansion in the
credit extended to the private business sector during the period by LE 19.9 billion
or 8.3 percent, against LE 6.7 billion and 2.9 percent during the period of
comparison. This brought the banking debt of this sector up to LE 259.3 billion
(almost half of the total domestic credit) at end of March 2007. The higher credit
received by this sector came in view of the larger role it is now playing in the
development process, as its share of the total executed investments augmented to
66.6 percent during the reporting period, and, in parallel, its contribution to GDP
rose to 62.1 percent. The units benefiting from the credit increase in this sector
were the services sector (47.8 percent), the agriculture sector (29.9 percent), and
the manufacturing (18.1 percent). Likewise, credit extended to the household
sector rose by LE 4.8 billion or 9.1 percent, posting LE 58.0 billion or 11.1 percent
of total credit. On the other hand, credit extended to the public business sector
declined by LE 9.2 billion or 28.1 percent (because of the settlements with to
banks), reaching LE 23.6 billion or 4.5 percent of the total.
Change in Domestic Credit by Sector

(July / March)
LE bn
30
25
20
15
10
5
0
-5
-10
-15
2004/2005 2005/2006 2006/2007
Household sector Public business sector

private business sector Government sector (Net)
Credit to the government sector (calculated on a net basis, i.e. minus

government deposits at the banking system), dropped by LE 2.5 billion or 1.4
percent, bringing up its balance to LE 181.6 billion or 34.8 percent of total
domestic credit at end of March 2007. Such a drop was a main outcome of a
decline in banks’ acquisition of government securities and bills by LE 22.8 billion.
However, loans to the government rose by LE 20.1 billion, and its deposits
dropped by LE 0.2 billion.
- 27 -
2/2: Banking Developments
2/2/1: Overview of Banks' Aggregate Financial Position
The number of registered banks operating in Egypt reached 41 at end of

March 2007. Their aggregate financial position amounted to LE 879.6 billion,
indicative of a rise of LE 118.0 billion or 15.5 percent during July/March,
2006/2007, against LE 78.3 billion or 11.1 percent during the corresponding period
of the previous FY.
On the liabilities side, 46.5 percent of the increase was attributed to a surge
of LE 54.9 billion in banks’ liabilities to the CBE (mainly in foreign currencies). In
addition , banks' deposits increased by LE 25.3 billion to LE 594.1 billion at end of
March 2007, and provisions by LE 3.8 billion to LE 58.7 billion or 17.2 percent of
the total lending and discount balances.
Growth Rates in Liabilities Composition during June/March

%
69.5
Other liabilities 64.8 - 28 -
Total deposits 6.3
4.4
-19.4
Obligations to banks in Egypt
-10.1
94.4 528.8
Obligations to CBE
Obligations to banks abroad

3.5
24.8
Long-term loans & bonds 13.4
8.7
Provisions 6.9
Reserves 5.5 2005/2006

-10.9
7.6 2006/2007
Capital
7.3
- 28 -
Growth Rates in Assets Composition during June/March

%
Other assets 65.0

64.1
Loan and discount balances 2.3

5.7
-11.9
Balances w ith banks in Egypt
-6.9
Balances w ith banks in CBE -0.9
36.9
Balances w ith banks abroad 42.1

62.7
Securities & investm ents in TBs 15.1

-6.7
2005/2006
Cash -6.1
3.9
2006/2007
Concerning assets, 38.5 percent of the increase was mainly due to a step-up
of LE 45.5 billion worth in banks' investments abroad. In addition, there was a rise
in banks' balances with CBE by LE 40.4 billion (mainly deposits accepted at the
CBE under open market operations) and in lending and discount balances by LE
18.5 billion to LE 342.5 billion
On the other hand, banks’ portfolio investment declined by LE 13.0 billion

to LE 180.9 billion at end of March 2007. Such a retreat was a result of the fall in
local investments in treasury bills by LE 17.4 billion, in government bonds by LE
5.5 billion, and non-government bonds by LE 2.2 billion. The fall was somewhat
mitigated by the rise in investments in CBE notes by LE 10.3 billion, equity
participations by LE 1.1 billion, and foreign securities by LE 611.3 million worth.
Portfolio Structure
% June 2006
March 2007
40 36.7
35 29.7 31.0 30.1
30
25 17.6
20 12.2 13.7
15 11.1
6.2 6.9
10 2.9 1.9
5
0
Treasury bills Gov. bonds Non-gov. bonds Corp. equities CBE notes Foreign securities
- 29 -
As for local banks’ transactions with banks abroad, the credit position of
local banks rose by LE 45.2 billion worth or 70.8 percent during the period under
review to LE 109.0 billion worth at end of March 2007. The increase was an
outcome of a pickup in balances with banks abroad by LE 45.5 billion worth, and
a slight rise in their obligations thereto by LE 0.3 billion worth.
Transactions with Banks Abroad

(LE mn)
End of June 2006 March 2007 2005/2006 2006/2007
Value % Value %
Net Position 63784 108967 25444 65.3 45183 70.8
Balances at banks abroad 72554 118042 21535 42.1 45488 62.7
Obligations to banks abroad 8770 9075 (3909) (31.9) 305 3.5
1/2/2: Inter-bank Money Market in Egypt
The volume of deposits in the inter-bank money market declined from LE

12.1 billion at end of June 2006 to LE 11.3 billion at end of March 2007. The
decrease was a net result of a LE 1.6 billion fall in foreign currency deposits, and a
LE 0.7 billion increase in those in local currency.
Volume of Inter-bank Money Market in Egypt

(LE mn)
End of June 2006 March 2007 2005/2006 2006/2007
Value % Value %
Total 12098 11267 (1811) (11.9) (830) (6.9)
Balances in local currency 5776 6513 1146 15.9 738 12.8
Balances in foreign currencies 6322 4754 (2957) (36.9) (1568) (24.8)
1/2/3: Deposits
Total deposits at banks (including government deposits) went up by LE 25.3

billion during the period under review, against LE 32.6 billion during the period of
comparison. Reaching LE 594.1 billion at end of March 2007, banks' deposits
constituted 67.5 percent of the aggregate financial position of banks.
- 30 -
Change in Deposits during July/March
Local Currency
Foreign Currency
9.4 8.3
LE bn LE bn
(37%) ( 25%) 24.3
15.9 LE LE bn
bn (63%) ( 75%)
2006/2007 2005/2006
Around 80.6 percent of the increase in total deposits was in the household
sector’s LE deposits. Rising by LE 20.4 billion or 7.1 percent during the period
under review, against LE 21.7 billion and 8.6 percent during the period of
comparison, these deposits amounted to LE 308.3 billion, or almost three quarters
of total local currency deposits and 51.9 percent of total deposits at end of March
2007. A breakdown of the sector’s deposits by maturity indicates that LE time and
saving deposits represented 92.1% of the sector's total deposits in local currency at
end of March 2007. The above-mentioned indicators showed a higher propensity to
save in the Egyptian pound, especially with the improvement in its exchange rate.
Change in Deposits during July / March

2005/2006 2006/2007
L. E. bn
18 17.0
16
14
12 8.1 9.3 8.0
10
8 5.0
6 3.7 4.1 3.5
4 2.4
2
0
(2) (0.8) (0.4)
(4) (2.1)
Demand Time & Blocked or Demand Time & Blocked or
saving retained saving retained
Local Currency Foreign Currency

- 31 -
Deposits of the private business sector also augmented by LE 15.0 billion to

LE 95.7 billion, representing 16.1 percent of total deposits at end of March 2007.
About 66.8 percent of the increase was in local currency deposits that mounted by
LE 10.0 billion. The sector’s deposits in foreign currencies scaled up by LE 5.0
billion worth.
Change in local currency deposits by sectors during July/March
25 21.7
20.4
LE bn
20
15
10.0
10
5 3.1 1.2
1.8 0.5 1.1
0
(5) (2.8) 2005/2006 2006/2007
(10)
(15)
(20) (16.9)
Governm ent sector Public business sector
Private business sector Household sector
Foreign sector
On the other hand, local currency deposits of the government sector

retreated by some LE 16.9 billion. This was a direct result of applying the
provisions of Law no. 139 for 2006 regarding the opening of a Treasury Single
Account (TSA) at the CBE, where the accounts of government entities, and
economic and services authorities are transferred from banks thereto.
Change in foreign currency deposits by sectors during July/March
5.6
6 5.0
LE bn
5 3.9
4
3
2 1.3
0.7 0.5 0.20 0.4
1 0.2 (0.04)
0
(1)
2005/2006 2006/2007
Government sector Public business sector

Foreign sector
- 32 -
2/2/4: Lending Activity
During the period under review, banks' lending activity remarkably

expanded, relative to the period of comparison. Banks' credit facilities rose by LE
18.5 billion or 5.7 percent against LE 7.0 billion and 2.3 percent, reaching thereby
LE 342.5 billion, constituting 38.9 percent of banks total assets and 57.7 percent
of total deposits at end of March 2007. The rise was an outcome of the increase in
local currency loans by LE 4.5 billion or 1.9 percent, to reach LE 243.4 billion or
71.0 percent of total lending and discount balances at end of March 2007, and the
pickup in foreign currency loans by LE 14.0 billion or 16.4 percent to LE 99.1
billion worth, on the other.
The rise in total lending and discount balances was mainly attributed to the
marked increase in loans to the private business sector. Lending to this sector
mounted by LE 18.1 billion or 8.4 percent, against a slight rise of LE 1.4 billion or
0.7 percent), therefore reaching LE 232.7 billion or 67.9 percent of the total
lending and discount balances at end of March 2007. The rise in the lending to the
sector reflects the surge in local currency loans (LE 9.2 billion), and foreign
currency loans (LE 8.9 billion worth). Almost half of the increase was in the
services sector’s loans (47.8 percent), followed by agriculture (29.9 percent), and
manufacturing (18.1 percent).
Change in credit facilityinlocal currency during

July-/ March
33 -
11 9.2
7.7
LE bn
9
7 3.6
5
3 (0.1) 0.2 0.2 0.1
1
(1)
(3)
(5) (2.2) (4.9)
(7)
(9)
(8.5)
2005/2006 2006/2007
Foreign sector
- 33 -
Change in credit facility in foreign currencies during July / March
10 8.9
6.3
LE bn
4.1
5
0.8 0.5 1.3 0.4
0
(0.9) (0.6) (0.8)
(5) 2005/2006 2006/2007

Foreign sector
Loans to the household sector also augmented by LE 4.8 billion (against LE

8.6 billion) recording LE 58.0 billion or 16.9 percent of total lending and discount
balances at end of March 2007. However, loans to the public business sector
decreased under the settlement of its debts to banks.
Over one year loans and advances (excluding discounts), extended by banks,
accounted for 73.7 percent of the total increase in loans. They went up by LE 13.5
billion or 10.2 percent during the period, to LE 145.6 billion at end of March 2007.
More than half of the increase realized during the period was in foreign currency
loans, reflecting as such the drop in lending costs given the rise in the LE value
and the expectations of its continued improvement.
Change in credit facility − economic activity during July / March

2005/2006
2006/2007
30 25.3
LE bn
20
9.7
10 6.4 5.0 5.3
0
(1.1) (2.1) (1.0)
(10) (4.6)
(20) (17.5)
Agriculture Industry Trade Services Unclassified
sectors
- 34 -
One year or less loans and advances scaled up by some LE 4.8 billion or 2.5
percent to stand at LE 195.7 billion at end of March 2007. This rise was an
outcome of the pickup in foreign currency loans by LE 6.1 billion worth and the
decline in local currency loans by LE 1.3 billion.
Loans and Advances

by Maturity and Currency*
(LE mn)
End of 2005/2006 2006/2007
Value % Value %
Total 7553 2.5 18255 5.7
One year or less 2878 1.5 4795 2.5
In local currency 1136 0.8 (1324) (0.9)
In foreign currencies 1742 4.4 6119 14.0
More than one year 4675 3.9 13460 10.2
In local currency 47 0.1 5746 6.3
In foreign currencies 4628 13.2 7714 18.8
* Excluding discounted commercial papers
- 35 -
3- Stock Exchange
The Ministry of Investment (MOI) and the Capital Market Authority (CMA)
continued their interest to improve the Stock Exchange, in order to enhance
stability and protect investors. In this context, efforts were exerted to create an
enabling legislative and regulatory environment and upgrade the CMA’s regulatory
performance in order to minimize the potential risks to the stock market.
To this end, the MOI and the CMA issued a number of decrees during
January/March 2007. The Minister of Investment’s Decree No. 12/2007 was
issued, adding a new chapter to the Executive Regulations of the Capital Market
Law, on new regulation for the purchase of shares of joint venture companies for
merger and acquisition purposes. Moreover, the CMA’s Board of Directors issued
the following decisions:
- Decision no. (2)/2007 regarding the contracts of repos (bonds), concluded by
bond brokerage, dealing and intermediaries companies.
- Decision no. (10)/2007 on the rules of splitting the nominal value of listed
shares.
- Decision no. (11)/2007 on the executive rules of corporate governance of
unlisted securities companies.
- Decision no. (14)/2007 concerning issuing the capital adequacy
requirements for securities.
- Decision no. (24)/2007 issuing rules for licensing the staff of securities
brokerage companies, to raise their efficiency and upgrade the performance
of securities intermediaries in the market.
- Decision no (41)/2007 organizing the activities of independent financial
advisors and other providers of advisory or valuation reports with respect to
capital increase or acquisition.
Moreover, the Prime Minister issued Decree no. (505)/2007 regulating the
placement of public stakes in joint venture companies or public enterprises whose
shares are listed in CASE. The Decree pointed out that the guiding fair value is to
be determined according to average closing prices during the past six months prior
to the placement, provided that those shares comply with the rules of CASE
concerning active shares.
- 36 -
The efforts exerted to improve the stock market, along with the recent
financial and banking reform measures, helped attract new Arab and foreign
investors to the market, and drove its indices. Accordingly, CASE 30 moved up to
7191.9 points at end of March 2007, by 50.7 percent during the period under
review. Also, the CMA indicator recorded 2483.02 points at end of March 2007,
with an increase of 46.3 percent during the period.
CMA & (CASE 30) Indices
9000 Case30 3000

Referendums on the Constitutional
Capital Market amendments
Authority 2800
8000
Dramatic Drop in the 27-Feb 26-March
American Exchange 2600
6-Feb
7000
2400
6000 2200
1-Feb
2000
5000 Customs cuts
on 1114 items
1800
Maintaining the overnight deposit and
4000 lending rates at 8.75% and
10.75%,respectively 1600
3000 1400
06
6
06
06
06
06
7
-0
-0
-0
-0
-0
t-
r-
r-
r-
r-
ry
ry
ly
ne
ch
us
be
be
be
be
Ju
ua
a
Ju
ar
ug
nu
em
o
em
em
br
M
ct
A
Ja
ec
ov
pt
Fe
Se
D
N
Indicators of the overall dealing on shares and bonds on the Exchange

revealed that the trading volume of securities scaled up by 47.5 percent, reaching
7.9 billion papers during July/March 2006/2007, against 5.3 billion papers during
the corresponding period of the previous FY. Likewise, market capitalization rose
by 21.9 percent during the period, reaching LE 547.9 billion and representing 75.1
percent of GDP at end of March 2007.
- 37 -
The Market Capital as a Percentage of GDP

%
L.E. bn
600 80
75
500 70
400 65
60
300 55
50
200 45
100 40
35
0 30
June 2005 Sept. Dec. Mar. 2006 June Sept. Dec. Mar 2007
The sectoral distribution of market capitalization shows that the sector of

finance, insurance and real estate attracted most of the investments during the
period. As such, the relative importance of this sector picked up to 31.2 percent at
end of March 2007, from 26.7 percent at end of June 2006. On the other hand, the
relative importance of the manufacturing sector declined to 31.7 percent, from 36.2
percent.
Market Capitalization by Sector
(LE mn)
June March
At End of 2006 % 2007 %
Total 377070 100.0 547933 100.0
Agriculture, forests and fishing 1291 0.3 1506 0.3
Extractions 1090 0.3 3826 0.7
Construction 2987 0.8 3418 0.6
Manufacturing 136575 36.2 173593 31.7
Transportation, communications,
electricity, gas and health 60304 16.0 74211 13.5
Wholesale and retail trade 2178 0.6 2638 0.5
Finance, insurance and real estate 100565 26.7 170728 31.2
Services 72080 19.1 118013 21.5
Source: CMA
- 38 -
Foreigners' transactions on the Egyptian Exchange (in LE and US dollar)

were active during the period. They registered net purchases of LE 20.3 billion
during the period, against LE 3.4 billion. This denoted an increase in the value of
their purchases (LE 59.0 billion) over their sales (LE 38.7 billion), against LE 56.3
billion and LE 52.8 billion, respectively.
Foreigners' Transactions on the Stock Exchange
July/March
During 2005/2006 2006/2007
Purchases Sales Net Purchases Sales Net
Trading
volume (000s) 984014 849252 134762 1524613 1084869 439744
Trading value
(LE mn) 56252 52844 3408 58992 38700 20292
* Source: CMA
The Stock Exchange trading structure continued to signify greater activity for
individual investors than institutions. At end of March 2007, individuals accounted
for 60.0 percent of the total trading value, against 61.0 percent at end of June 2006.
- 39 -
3/1: Shares Market
3/1/1: Primary (Issue) Market
a) New Issues
The CMA approved during the reporting period 2003 new issues, 1353 of
which, went to new incorporations, with a number of shares reaching 1.3 billion at
a value of LE 26.1 billion or 35.3 percent of the total value. Issues to increase the
capital of existing companies reached 650, with 2.0 billion shares at a value of LE
47.9 billion or 64.7 percent of the total issues during the period.
New Share Issues on the Exchange
July/March
During
2005/2006 2006/2007
Total Number of Issues (Unit) 1589 2003
New incorporations 983 1353
Capital increase of existing companies 606 650
Total Number of Shares (mn) 2178 3304

Total Value of Shares (LE mn) 28937 73996

Source: CMA (Information Center)
- 40 -
b) Companies Listed on the Exchange
The number of listed companies dropped to 565 at end of March 2007,

against 656 companies at end of June 2006. However, the nominal value of their
capital went up to LE 119.6 billion (against LE 109.2 billion).
Companies Listed on the Exchange

(LE mn)
End of No. of No. of
Nominal Market Nominal Market
Companies Companies
Capital Capital Capital Capital
(Unit) (Unit)
Total 656 109165 377070 565 119615 547945
Listed on official
schedules 141 58432 298478 142 70123 453511
Listed on unofficial
schedules 503 50354 78013 420 49210 93986
Listed on the
temporary schedule 12 379 579 3 282 448
Source: CASE
3/1/2: Secondary (Trading) Market
The trading value of shares (in LE and US dollar) slightly rose by 0.53
percent during the period, as compared with the corresponding period of the
preceding FY, thereby reaching LE 189.4 billion.
- 41 -
Trading in Shares on the Exchange
July/March
2005/2006 2006/2007
During No. of Volume Market No. of Volume Market
Transactions (000s) Value Transactions (000s) Value
(Unit) (mn) (Unit) (mn)
Total Trading on
the Floor in LE 4331593 4348799 178114 5445923 6878515 176865
Shares in LE 4202577 4139415 168221 5227896 6401182 170616
Shares in US$ 129016 209384 1713 218027 477333 1091
Total Trading over
the Counter in LE 175437 988542 10240 181068 1000672 12487
Shares in LE 175054 869194 7099 174275 846151 9812
Shares in US$ 383 119348 545 6793 154522 467
Source: CMA
Shares traded on the floor represented 93.4 percent of the total transactions
in shares, mainly LE shares, which recorded a value of LE 170.6 billion. Dealings
in US dollar shares reached only US$ 1.1 billion. The finance, insurance and real-
estate sector accounted for 47.1 percent of the total value of shares traded in the
Egyptian pound and 91.1 percent of those traded in US$. Traded OTC shares
increased by 21.9 percent, reaching LE 12.5 billion, and reflecting the rise of
traded shares in LE.
- 42 -
3/2: Bonds Market
3/2/1: Primary (Issue) Market
Total nominal value of issued bonds (listed) declined by LE 6.6 billion

during the period, to stand at LE 59.2 billion at end of March 2007. This decline
was mainly ascribed to the amortization of government bonds (mainly treasury
bonds) in the amount of LE 4.3 billion, and corporate bonds of LE 1.9 billion.
Bonds Listed on the Exchange

(LE mn)
At End of June 2006 March 2007
Listed % Listed %
Total 65724.7 100.0 59159.7 100.0
Government Bonds 58951.1 89.7 54601.7 92.3
- Treasury bonds 11000.0 16.7 7000.0 11.8
- Treasury bonds (primary
dealers system) 47000.0 71.5 47000.0 79.5
- Housing bonds 121.7 0.2 117.9 0.2
- - Dollar development bonds 829.4 1.3 483.8 0.8
Corporate Bonds 5572.5 8.5 3693.4 6.2
Bank Bonds 1201.1 1.8 150.0 0.3
Securitization Bonds - - 714.6 1.2
Source: CASE
3/2/2: Secondary (Trading) Market
Trading in bonds (on the floor and OTC) sharply decreased during the
period. The trading value of bonds (in LE and US dollar) amounted to LE 7.2
billion, against LE 9.5 billion during the period of comparison. Trading on the
floor was concentrated in LE bonds, as 8.6 million papers were dealt in, at a value
of LE 7.1 billion (of which, treasury bonds under the primary dealers system
represented LE 6.9 billion), through 521 transactions. The volume of trading in US
dollar bonds rose to 0.2 million papers at a value of US$ 21.3 million, conducted
through 9 transactions.
- 43 -
Trading in Listed Bonds on the Floor
July /March
2005/2006 2006/2007
No. of Quantity Value of No. of Quantity Value of
During
Transactions of dealt- dealt-in Transactions of dealt- dealt-in
(Unit) in bonds bonds (Unit) in bonds bonds
(000s) (000000s) (000s) (000000s)
Total Bonds (LE) 491 9188.1 9073.3 521 8564.9 7071.2
Treasury bonds 11 57.3 61.0 7 431.6 21.1
T. Bonds (primary
dealers system) 381 8192.3 8909.2 440 6552.9 6884.9
Housing bonds 51 5.4 0.3 18 1.3 0.0
Corporate bonds 46 931.1 102.6 53 1579.1 164.2
Bank bonds 2 2.0 0.2 3 0.0 1.0
Total Bonds (US$) 2 21.3 2.2 9 207.3 21.3
Development bonds - 0.0 0.0 - - 0.0
Corporate bonds 2 21.3 2.2 9 207.3 21.3
Source: CMA
It is to be noted that OTC dealings were limited to the US dollar bonds of a

single company at a value of US$ 2.2 million.
3/3: Mutual Funds
CMA approved the inception of six new mutual funds during July/March
2006-2007, thus raising their total number to 36 (33 are open-ended and 3 are
closed) at end of March 2007. Consequently, the par value of mutual fund
certificates increased to LE 7.4 billion, while their market value amounted to LE
14.0 billion, at end of March 2007 (against LE 6.6 billion and LE 10.5 billion,
respectively, at end of June 2006).
- 44 -
4- Public Finance and Domestic Public Debt

4/1: Consolidated Fiscal Operations of the General Government
While taking into account the social dimension and basic services
improvement, Egypt's fiscal policy during January-March 2006/2007 worked to
raise the budget revenues through enhancing tax collection and combating tax
evasion.
In this regard, a decree was issued, establishing El Masriya Holding for

Health Care to efficiently provide medical care for low-income people and health-
insurance beneficiaries. Amendments were made to the Income Tax Law and its
Executive Regulations. Amendments were also made to the Executive Regulations
of the Stamp Tax Law, and Customs Tariff regulations.
Hereunder are a follow up of the executed consolidated fiscal operations of

the general government during July/March 2006/2007 according to the estimates of
the Ministry of Finance.
I- Budget Sector
A follow-up of the executed fiscal operations of the budget sector

(administrative system, local administration and service authorities) revealed that
total collected revenues reached some LE 105.3 billion or 64.2 percent of the total
projected for the whole FY. Compared with those collected in the corresponding
period of the previous FY, revenues of the reporting period were higher by 15.2
percent.
- 45 -
Ratio Structure of the Budget Sector Revenues during July /March 2006/2007
Sales of Goods &

Services
3.6%
Taxes on Income,
and Profits
26.1%
Property Income
29.6%
Taxes on Property
1.2%
Other Taxes
Taxes on Goods &
8.1%
Services
International Trade 24.4%
7.0%
Collected tax revenues rose by some LE 5.7 billion or 9.8 percent during the
period, to reach about LE 64.3 billion or 61.0 percent of total collected revenues.
More than half of the increase (55.1 percent) was in collected taxes on income and
business profits which picked up by almost LE 3.2 billion or 13.0 percent over the
level of the corresponding period, to reach some LE 27.5 billion or 42.8 percent of
total tax revenues. The increase in income and business profit taxes was mainly
ascribed to higher collection of corporate taxes, surging by LE 3.5 billion or 97.7
percent, to some LE 7.1 billion. The noticeable rise in the proceeds of these taxes
reflected the successful implementation of the New Tax Law. The adoption of this
Law increased the number of taxpayers, (including the new firms that had not been
registered before), especially after reducing taxes to more reasonable levels. Taxes
collected from the Suez Canal Authority (SCA) went up by about LE 1.4 billion or
26 percent, to approximately LE 6.7 billion. Likewise, there was an increase in the
collected income taxes payable by individuals, which augmented by LE 335.0
million or 5.7 percent, to LE 6.2 billion. In the meantime, taxes from the EGPC
dropped by nearly LE 2.1 billion or 21.5 percent, to register LE 7.5 billion.
- 46 -
Ratio of Tax Revenues & Property Income / Total Revenues during

the period July / March
2006/2007
2005/2006
2004/2005
2003/2004
%
0 20 40 60 80 100
Tax Revenues Property Income
Tax earnings on sales of local and imported goods & services picked up by
LE 1.6 billion (28.5 percent of the increase in total tax revenues), to post some LE
25.7 billion. Moreover, earnings of customs dues rose by about 4.4 percent,
compared with the same period of the previous FY, to reach LE 7.3 billion or 76.5
percent of the total estimated for the whole FY 2006/2007.
Ratio of Sales Taxes & Customs Duties / Total Revenues during the
period July / March
2006/2007
2005/2006
2004/2005
2003/2004 %
0 5 10 15 20 25 30
Sales Taxes Customs Duties

- 47 -
Collected property income reached some LE 31.1 billion or 29.6 percent of

total collected revenues, with a rise of LE 4.9 billion or 18.6 percent, thanks to the
revenues collected from the third mobile license award during the first quarter of
FY 2006/2007. Moreover, transfers of profit surpluses of the SCA rose by LE 1.3
billion. In contrast, profit transfers of the EGPC dropped by LE 3.3 billion, and so
did those of some economic authorities.
Expenditures totaled about LE 127.8 billion, with an execution ratio of 58.8

percent of the total estimated for the whole FY, and a rise of LE 3.1 billion or 2.5
percent compared with the corresponding period of the preceding FY. It should be
noted that expenditures posted a rise in spite of the remarkable drop in subsidies
(as shown later).
The bulk of the increase in total expenditures was in the compensations of

employees (including cash, in-kind & insurance benefits). As such, they rose by
about LE 4.4 billion or 13.8 percent during the reporting period, to some LE 35.9
billion or 28.1 percent of total expenditures, representing 4.9 percent of GDP. The
increase was chiefly attributed to the salary raise approved for all civil servants at
the beginning of FY 2006/2007, and to the costs of incorporating the allowance of
FY 2001/2002 in basic salaries.
Ratio Structure of the Budget Sector Expenditures during

July/March 2006/2007
Other Expenditures
11.7% Compensations of
Investments 8.5% Employees
28.1%
Subsidies 17.3%
Grants & Social Purchases of

Benefits 2.3% Goods & Services
7.1%
Interests 25.0%
- 48 -
Interest payments (domestic and external) significantly increased by LE 10.5

billion or 48.8 percent over the level of the previous corresponding period, to reach
some LE 32.0 billion, or about a quarter of total expenditures. Domestic interest
payments amounted to some LE 29.3 billion, up by 55.4 percent, mainly due to a
surge in interest payments of the banking system, the NIB and pension funds.
External interest payments rose by only 1.0 percent, in accordance with the
government’s policy of minimizing external borrowing.
Investment expenditures of the administrative system, local administration

and service authorities, as prioritized in the Economic and Social Development
Plan, amounted to some LE 10.8 billion, up by 9.5 percent over the corresponding
period of the previous FY.
Subsidies went down by about LE 6.3 billion or 22.2 percent, posting some
LE 22.1 billion or 17.3 percent of total expenditures. The decline was a main result
of the fall in subsidies to the EGPC by 41.8 percent because of oil subsidy cuts.
Meanwhile, subsidies to GASC stepped up by 26.2 percent, and to other subsidy
items (such as farmers, export promotion, passengers transport, health insurance,
industrial zones, and interest payments of concessional loans) by 34.7 percent
compared with the previous corresponding period.
Ratio of Subsidy & Paid Interest / Total Expenditures during

% the period July / March
30
25
20
15
10
5
0
2003/2004 2004/2005 2005/2006 2006/2007
Interests Subsidies
- 49 -
Against this background, the cash deficit of the budget sector amounted to
some LE 22.5 billion (3.1 percent of GDP) during July-March 2006/2007, down by
32.3 percent compared with the corresponding period of the preceding FY. When
adding the net acquisition of financial assets (about LE 6.5 billion during the
period), the overall budget deficit would reach around LE 29.0 billion (4.0 percent
of GDP).
Ratio of Expenditures, Revenues & Overall Deficit / GDP
Expendituresa during the Period July / March Overall

nd Revenues Deficit
25 7
6
20
5
15
4
10 3
2
5
1
0 0
2002/2003 2003/2004 2004/2005 2005/2006 2006/2007
Revenues Expenditures Deficit
Of the overall budget deficit, about LE 27.0 billion (93.0 percent) were
financed by subscriptions of individuals and companies for government bills and
bonds (LE 22.7 billion), loans from insurance funds (LE 4.1 billion) and from the
NIB (LE 0.2 billion). In addition, around LE 0.1 billion were financed from
privatization proceeds. The remaining deficit was financed from the available
sources (around LE 15.7 billion) through activating the Treasury Single Account
opened at the CBE and effected in November 2006. Other miscellaneous sources
were used to pay some local and external obligations (totaling LE 21.9 billion
during the period).
- 50 -
II- Consolidated Fiscal Operations of the General

Government (Budget Sector, NIB and SIFs)
With the addition of the fiscal operations of the NIB and SIFs to those of the
budget sector, collected revenues augmented by about LE 17.5 billion, to some LE
122.8 billion. Likewise, expenditures rose by some LE 15.4 billion, to post about
LE 143.3 billion.
Execution of Consolidated Fiscal Operations of General Government

(Budget Sector, NIB and SIFs)
(Total Revenues)
(LE bn)
Budget Relative Actual General Relative Actual
Sector Structure Execution Gov. * Structure Execution
Ratio of Ratio of
the Total the Total
Estimated Estimated
for the for the
Year Year
Total Revenues 105.3 100.0 64.2 122.8 100.0 64.5
Tax Revenues 64.3 61.0 60.8 64.3 52.3 60.8
Taxes on income, profits 27.5 26.1 51.3 27.5 22.4 51.3
From EGPC 7.5 7.1 27.9 7.5 6.1 27.9
From SCA 6.7 6.4 76.1 6.7 5.5 76.1
From CBE 0.0 0.0 0.0 0.0 0.0 0.0
From other units 7.1 6.7 99.4 7.1 5.7 99.4
Payable by individuals 6.2 5.9 57.9 6.2 5.1 57.9
Taxes on property 1.3 1.2 106.9 1.3 1.0 106.9
Taxes on goods & Services 25.8 24.4 69.7 25.8 20.9 69.7
Customs 7.3 7.0 76.5 7.3 6.0 76.5
Other Taxes 2.4 2.3 56.1 2.4 2.0 56.1
Grants 2.1 2.0 62.3 2.1 1.8 62.3
Other Revenues 38.9 37.0 70.9 56.4 45.9 69.4
Property income 31.1 29.6 72.4 34.8 28.3 70.1
Sales of goods & services 3.8 3.6 44.2 3.8 3.1 44.2
Financing investment 0.7 0.7 50.7 0.7 0.6 50.7
Others 3.3 3.1 173.8 17.1 13.9 79.0
Source: Ministry of Finance
* Including the budget sector, and fiscal operations of NIB and SIFs.
Percentages are calculated in terms of LE million.
- 51 -
Execution of the Consolidated Fiscal Operations of the

General Government
(Total Expenditures)
(LE bn)
Budget Relative Actual General Relative Actual
Sector Structure Execution Gov. * Structure Execution
Ratio of Ratio of
the Total the Total
Estimated Estimated
for the Year for the Year
Total Expenditures 127.8 100.0 58.8 143.3 100.0 60.4
Compensations of
Employees 35.9 28.1 69.8 36.3 25.3 69.7
Purchases of Goods
& Services 9.1 7.1 58.6 9.1 6.4 58.5
Interests 32.0 25.0 63.0 24.6 17.1 61.5
Subsidies, Grants
& Social Benefits 25.3 19.8 43.3 47.7 33.3 54.6
Subsidies 22.1 17.3 41.1 22.1 15.4 41.1
Grants 1.6 1.3 70.8 1.6 1.1 70.8
Social benefits 1.4 1.0 89.4 23.8 16.6 78.1
Others 0.2 0.2 25.6 0.2 0.2 25.6
Other Expenditures+ 14.7 11.5 70.4 14.8 10.3 67.5
Purchases of
Non-Financial
Assets (Investments) 10.8 8.5 53.5 10.8 7.6 53.5
Source: The Ministry of Finance
* Including the budget sector, and fiscal operations of NIB and SIFs
+ Of which, LE 12.9 billion are allocations to defence.
The aforementioned developments resulted in a cash deficit of about LE

20.5 billion in the consolidated fiscal operations of the general government during
July/March 2006/2007. With the addition of the net acquisition of financial assets
(some LE 8.6 billion), the overall deficit reached about LE 29.1 billion.
- 52 -
Execution of the Consolidated Fiscal Operations

of the General Government
(Cash and Overall Deficit/Surplus and Financing Sources)
(LE bn)
Actual Actual
Execution Execution
General
Budget Relative Ratio of the Relative Ratio of the
Gov. *
Sector Importance Total Importance Total
Estimated Estimated
for the Year for the Year
Total Revenues 105.3 64.2 122.8 64.5
Total Expenditures 127.8 58.8 143.3 60.4
Cash Deficit 22.5 42.2 20.5 43.8
Net acquisition of
financial assets 6.5 73.1 8.6 99.5
Overall Deficit 29.0 46.6 29.1 52.5
Financing Sources 29.0 100.0 46.6 29.1 100.0 52.5
Domestic Financing 27.3 94.0 41.7 27.4 94.0 45.0
Banking financing -1.5 -5.1 -4.0 -0.3 -0.9 -0.7
Non-banking
financing 27.0 93.0 94.5 25.9 88.9 102.3
Net credit and
debit liabilities 1.8 6.1 1.8 6.0
Foreign Borrowing -1.4 -4.7 26.4 -1.4 -4.7 26.4
Arrears -0.5 -1.6 -0.5 -1.6 -
Others -0.9 -3.1 90.3 -0.9 -3.1 27.4
Financing Effects for
Eliminations 0.0 0.0 0.0 0.0
Exchange Rate
Revaluation -0.5 -1.8 -0.5 -1.8
Net Privatization
Proceeds 0.1 0.4 3.5 0.1 0.4 3.5
Differences between
Treasury Bills Face
Value and Present
Value -0.7 -2.6 - -0.7 -2.6 -
Discrepancy 5.6 19.4 - 5.6 19.4
-
Source: The Ministry of Finance
* Including the budget sector, and fiscal operations of NIB and SIFs.
0.0 Less than LE 0.1 billion
- 53 -
4/2: Domestic Public Debt
Gross domestic public debt, including obligations of the government, public

economic authorities and NIB, reached some LE 619.5 billion (84.9 percent of
GDP) at end of March 2007, up by LE 26.0 billion or 4.4 percent during
July/March 2006/2007. Government debt accounted for 75.6 percent of the total,
debt of public economic authorities 7.5 percent and net debt of the NIB 16.9
percent.
Domestic Public Debt at end of March 2007
NIB debt
Economic
authorities
Government
debt
Gross Domestic Public Debt

(LE bn)
At End of June 2006 March 2007 Change + (-)
Value % Value % Value %
Gross Domestic Public
Debt (1+2+3) 593.5 100.0 619.5 100.0 26.0 4.4
1. Government, 387.7 65.3 468.3 75.6 80.6 20.8
of which, short-term
TBs 103.2 17.4 110.7 17.9 7.5 7.3
2. Public economic auth. 47.4 8.0 46.3 7.5 (1.1) (2.4)
3. NIB (net) 158.4 26.7 104.9 16.9 (53.5) (33.8)
- 54 -
4/2/1: Domestic Government Debt
As of the 1st of July 2006, the balance of government debt to the NIB was
totally cleared to zero. Moreover, the NIB’s obligations towards the two insurance
and pension funds were transferred to the government within the balance of the
government debt due to the Bank up till the 30th of June 2006. A new item was
introduced, entitled bonds for the Social Insurance Funds for Civil Servants and
Public and Private Business Sector Employees (SIFs bonds), amounting to LE
197.7 billion.
At end of March 2007, domestic government debt reached LE 468.3 billion,

up by LE 80.6 billion or 20.8 percent during July/March 2006/2007. The increase
was an outcome of a rise of LE 201.8 billion in the balances of treasury bonds and
bills and a retreat of LE 21.4 billion in the government net credit position with the
banking system on the one hand, and the LE 142.6 billion drop in the NIB debt to
the two funds as mentioned above, on the other hand.
The rise in the balance of bonds by about LE 194.3 billion was a main result
of the following issues and amortizations:
Floating two Treasury bond issues on the 1st of July 2006 for the benefit of
the two funds in the amount of about LE 197.7 billion, against the transfer
of the NIB’s obligations thereto to the Public Treasury.
The value increase of the Treasury bond issue of September 2005 by LE

2.0 billion, to reach LE 6.0 billion, as per the same issuance terms and
conditions.
Amortization of Egyptian Treasury bonds (LE 4.0 billion) on the 1st of
January 2007.
The decline of LE 1.2 billion worth in the balance of dollar-denominated

sovereign bonds held by resident financial institutions, due to the
amortization of the first tranche of these bonds in July 2006.
- 55 -
Treasury bills increased by some LE 7.5 billion at end of March 2007. The
bulk of the increase was in banks' subscriptions (about 69.0 percent), followed by
foreigners' subscriptions (24.1 percent), insurance companies and funds (3.6
percent), mutual funds (2.6 percent) and other entities (0.7 percent).
Domestic Government Debt

(LE bn)
Balances at End of June 2006 March 2007 Change
Value % Value % + (-)
Total Debt 387.7 100.0 468.3 100.0 80.6
-Balances of Bonds and Bills 350.0 90.3 551.8 117.8 201.8
• Notes and Bonds* 246.8 63.7 441.1 94.2 194.3
Of which: tradable on exchanges 63.2 16.3 60.0 12.8 (3.2)
• Treasury bills 103.2 26.6 110.7 23.6 7.5
- Net Balances at the Banking
System -104.9 -27.1 -83.5 -17.8 21.4
• Facilities 5.1 1.3 20.7 4.4 15.6
• Deposits -110.0 -28.4 -104.2 -22.2 5.8
- Borrowing from NIB 142.6 36.8 0.0 0.0 (142.6)
Total debt/GDP (%) 62.8 64.2
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 of 1983 for the purchase of
government bonds; and the holdings of resident financial institutions (banking system and insurance sector) of
dollar-denominated sovereign bonds tradable on world exchanges.
LEbn Government Domestic Debt
600
400
200
-200
March 2007
June2005
Borrowing from the NIB

Bonds
Treasury Bills
Net Balances with the Banking System
- 56 -
4/2/2: Debt of Public Economic Authorities
Debt of these authorities declined by LE 1.1 billion during July/March

2006/2007, to LE 46.3 billion at end of March 2007. This drop is an outcome of
two developments: 1- an improvement of LE 2.5 billion in their net credit position
with the banking system (due to a rise in their deposits by LE 6.9 billion,
exceeding as such the LE 4.4 billion pickup in their borrowings). 2- NIB lending to
these authorities stepped up to about LE 1.4 billion.
Economic Authorities Debt

(LE bn)
60
50
40
30
20
10
0
-10
Borrowing of Economic Authorities from NIB

Net Balances of Economic Authorities with the Banking System
- 57 -
Debt of Public Economic Authorities

(LE bn)
Total Debt 47.4 100.0 46.3 100.0 (1.1)
- Net balances with the
banking system -2.8 -5.9 -5.3 -11.5 (2.5)
• Facilities 23.4 49.3 27.8 60.1 4.4
• Deposits -26.2 -55.2 -33.1 -71.6 (6.9)
- Borrowing from NIB 50.2 105.9 51.6 111.5 1.4
Total Debt/GDP ( %) 7.7 6.3
Source: Ibid
4/2/3: Resources and Uses of the NIB
NIB resources declined by LE 196.2 billion during July/March 2006/2007,

to LE 158.8 billion at end of March 2007. This decline is attributed to a retreat of
LE 197.7 billion in the surpluses transferred to the NIB from the two Social
Insurance Funds, after the balance of government debt to the NIB was totally
cleared to zero, as mentioned above. Moreover, the resources transferred from
private insurance funds, the saving certificates, the deposits of various entities all
decreased by about LE 1.5 billion; and so did the receipts from the US dollar
development bonds by LE 0.3 billion. Such a decrease was counterbalanced by a
rise in the investment certificate proceeds and the accumulated interest on
investment certificates (group A) by some LE 3.3 billion. It is worth mentioning
that the interest on these certificates rose by 0.5 percent on group A, to reach 9.5
percent, and by 10.0 percent on group B, as of the 1st of February 2007 (Minister of
Finance's Decree No. 40 for 2007).
- 58 -
Resources and Uses of NIB

(LE bn)
Resources 355.0 100.0 158.8 100.0 (196.2)
• Social Insurance Fund for
Civil Servants 135.7 38.2 25.0 15.8 (110.7)
• Social Insurance Fund for
Public and Private
Business Sector Employees 105.7 29.8 18.7 11.8 (87.0)
• Investment certificate
proceeds 64.1 18.1 67.1 42.2 3.0
• Accumulated interest on
investment certificates
(group A) 7.0 2.0 7.3 4.6 0.3
• US dollar development
bonds 0.8 0.2 0.5 0.3 (0.3)
• Post office saving accounts 39.1 11.7 39.1 24.6 -
• Others 2.6 0.7 1.1 0.7 (1.5)
Uses 355.0 100 158.8 100.0 (196.2)
• Government 142.6 40.2 0 - (142.6)
• Public economic
authorities 50.2 14.1 51.6 32.5 1.4
• Others 158.4 44.6 104.9 66.1 (53.5)
• NIB balances with the
banking system (net) 3.8 1.1 2.3 1.4 (1.5)
Debt of NIB/ GDP ( %) 25.6 14.4
Source: Ibid
NIB used LE 51.6 billion (about 32.5 percent of its total resources) to
finance the investments of public economic authorities. The Bank allocated around
LE 104.9 billion to its various activities (i.e., concessional lending to low-cost
housing, and lending to holding companies and their affiliates).
- 59 -
Domestic public debt service posted some LE 30.7 billion or 29.1 percent of
total public revenues (4.2 percent of GDP) during the statement period, down by
LE 3.1 billion below the corresponding period of the previous FY. The retreat was
an outcome of a drop in principal repayments by LE 13.5 billion and a rise in
interest payments by some LE 10.4 billion.
% Domectic Debt Service Ratio/ GDP

6
0
July / Sept. July / Dec. July / March
2005/2006 2006/2007
- 60 -
5/1: Foreign Exchange Market
The ongoing economic and banking reforms contributed to fostering the

confidence of foreign investors in the Egyptian economy and encouraging their
investments in Egypt, therefore, increasing foreign currency inflows. This was
positively reflected on the stability and volume of transactions on the forex market.
As such, July/March 2006/2007 witnessed a remarkable improvement in the
market transactions as compared with the corresponding period of the previous FY.
Market resources increased by US$ 9.7 billion to US$ 32.5 billion, thereby
exceeding the rise in utilizations (only US$ 6.3 billion to US$ 24.4 billion).
Accordingly, market transactions recorded a surplus of US$ 8.1 billion during the
period under review, against US$ 4.8 billion. It is noteworthy that the significant
increase in resources during the period was concentrated in the CBE transactions
(as a result of adding the TML's selling proceeds of US$ 1.9 billion, and the sale of
80 percent of the stakes of the Bank of Alexandria at a value of US$ 1.6 billion). In
the meantime, transactions of foreign exchange dealer companies unfolded a
deficit of US$ 0.1 billion.
Resources and Utilizations of the

Forex Market
(US$ mn)
During the Period July-March
2005/2006 2006/2007
Surplus/Deficit (-) 4764 8108
The banking system 4633 8208
Foreign exchange dealer companies 131 -100
Resources 22771 32459
Foreign exchange dealer companies 1937 3653
Utilizations 18007 24351
Foreign exchange dealer companies 1806 3753
- 61 -
Net foreign currency assets of banks declined during the period by US$ 0.6
billion to US$ 3.7 billion at end of March 2007. Consequently, the ratio of banks'
assets to their obligations in foreign currencies decreased from 112.9 percent at end
of June 2006 to 108.4 percent at end of March 2007. This decline was due to the
increase of banks' obligations in foreign currencies at a higher rate than their assets
in the said currencies.
The value of the Egyptian pound versus the US dollar continued to rise
during the statement period. The average US$ market rate (buy) declined by 1.08
percent, to LE 5.6925 at end of March 2007, from LE 5.7523 at end of June 2006.
The weighted average of the US$ exchange rate in the interbank market posted LE
5.6966 at end of March 2007, against LE 5.7579 at end of June 2006.
Developments of US$ Exchange Rate in Forex Market

L.E.
5.77
Weighted Average Interbank Rates
5.75 Market Rates (buy)
5.73
5.71
5.69
5.67
5.65
June2006 September December March2007
NIR at the CBE remained on the rise during the reporting period, (up by US$
3.4 billion), thereby reaching US$ 26.3 billion at end of March 2007.
- 62 -
5/2: Balance of Payments∗
During July-March 2006/2007, Egypt’s transactions with the external world

realized an overall BOP surplus of US$ 3.1 billion, or 2.4 percent of GDP. The
surplus was a main result of a current account surplus of US$ 3.3 billion. The rise
in the services surplus and net unrequited transfers on the one hand, and the wider
trade deficit on the other were the main causes for the step-up in the current
account surplus. Hereunder are the details of Egypt's BOP and the commodity
structure of external transactions.
5/2/1: Trade Balance
Export proceeds rose by 18.1 percent to US$ 15.9 billion. Of this amount,
non-oil exports accounted for 53.9 percent, with a rise of 42.4 percent. On the
other hand, oil exports declined during the period by 1.5 percent, following their
record growth rates during the corresponding periods of the previous fiscal years.
Import payments increased by 21.0 percent to around US$ 26.3 billion. Oil
imports represented 10.9 percent of total payments, whereas non-oil imports
constituted 89.1 percent.
Against this background, the trade deficit widened by 25.7 percent, to

around US$ 10.4 billion, and the coverage ratio of merchandise export proceeds to
merchandise import payments declined from 62.0 percent to 60.5 percent. The
following chart displays the developments in the foreign trade during the reporting
period.
* A statistical statement recording economic transactions between a given economy (resident) and the rest of the
world (non-resident) during a specific period, compiled in accordance with the Fifth Edition of the IMF’s
Balance of Payments Manual, September 1993.
- 63 -
Merchandise ForeignTrade
US$ bn July / March
30.0
26.3
25.0 21.7
20.0 17.0 15.9
13.5
15.0
9.8
10.0
5.0
0.0
(5.0)
(10.0) (7.2) (8.3) (10.4)
(15.0)
2005/2004 2006/2005 2007/2006
Total exports Total imports Trade balance
5/2/1/1: Commodity Distribution of Exports and Imports
A. Exports by Degree of Processing
Most of the increase in merchandise export proceeds during the period under
review stemmed from a rise of 39.3 percent in the proceeds of finished goods.
Moreover, proceeds of semi-finished goods grew by 70.8 percent.
On the other hand, a slight decline was seen in the groups of fuels, mineral
oils & products and raw materials. The following chart shows the distribution of
merchandise exports by their relative importance during the period under review.
- 64 -
Commodity exports*
US$ 15.9 bn.
Non- oil 53.9% Oil 46.1%

US$ 8.6 bn, US$ 7.3 bn
Raw materials Semi-finished goods Finished goods Natural gas Crude oil Petroleum
5.6% 15.9% products
62.4% 27.9% 31.3%
31.4%
Main Main Main

commodities: Commodities: Commodities: Liquified gas
Vegetables & Cast iron Articles of iron 93.7%
plants Aluminum, and steel
Seeds & fruits Unalloyed Machinery &
Cotton Chemical Electrical
products appliances
Iron ores Ready-made
Cotton yarn
clothes
Miscellaneous Natural gas
food stuff
preparations 6.3%
______________
*
Calculated on FOB basis, as their value is calculated at the customs borders of the Egyptian economy, i.e.,
excluding the costs of shipment, insurance and freight. They include exports of free zones to the rest of the world.
- 65 -
Concerning the relative importance of the different sectors in foreign trade,

the public sector came on top, accounting for almost 50 percent of the total volume
of exports. Its key exports were crude oil and products (with a share of 79.7
percent against 97.7 percent in the corresponding period), unalloyed aluminum;
iron and steel products; cotton and sugar and its products. (See chart)
Sectoral Distribution of Exports

July / March 2006/2007
11.9 %
38.7 % 49.4 %
Public Sector Private Sector

Investment Sector
As for the private sector, finished goods constituted 75.7 percent of the
sector's exports. Its main exports were cast iron; iron and steel products; electric
machines and appliances; miscellaneous foodstuff preparations and sundry articles
of base metals.
Oil products contributed 56.5 percent of the investment sector’s total

exports. Exports of ready-made clothes; cast iron; fertilizers; iron and steel
products and cotton textiles accounted mainly for the remainder.
- 66 -
B. Imports by Degree of Use
Import payments scaled up by some US$ 4.6 billion or 21.0 percent as

compared with the period of comparison. The rise was attributed to an increase in
all groups of merchandise imports, particularly of investment, intermediate and
consumer goods. The rise in these three groups combined represented 70.2 percent
of the total increase in imports. The following chart illustrates the distribution of
merchandise imports by relative importance during the period.
Commodity imports*
US$ 26.3 bn
Undistributed imports Fuel, Mineral oils & products Consumer goods Raw materials Investment goods Intermediate goods
11.5% 7.0% 13.5% 15.9% 25.1% 27.0%
Main
Durable goods Non-durable goods
commodities: Main
Petroleum 26.4% 73.6% commodities:
products Crude oil Main
Coal & types Wheat commodities:
thereof Maize Iron & steel
Metal ores products
Main Chemical
products
commodities: Main Plastic &
Cars Main commodities:
Electric articles thereof
commodities: Spare parts and Fats & greases
appliances Pharmaceuticals accessories for
Refrigerators Meat cars
& electric Ready-made Electric
freezers clothes appliances
Optical appliances
Electric engines
_________________________________
* Calculated on CIF basis, i.e. including the costs of shipment, insurance and freight . They include imports of free
zones from the rest of the world.
- 67 -
The public and private sectors were the main importers, with a rise in the
relative importance of the former's imports from 36.0 percent to 49.8 percent (See
chart). The increase was ascribed to a rise in all of its merchandise groups,
especially raw materials. The most important imports of this sector were crude oil
and products; wheat; organic and inorganic chemicals; animal & vegetable fasts,
greases & oils and products; and tobacco.
The relative importance of the private sector’s imports noticeably declined

from 63.8 percent to 45.9 percent. Its chief imports were iron and steel products;
organic and inorganic chemicals; plastics and articles thereof; spare parts and
accessories for cars, and pharmaceuticals.
Sectoral Distribution of Imports

July / March 2006/2007
4.3 %
45.9 %
49.8 %
Public Sector Private Sector

Investment Sector
Imports of the investment sector were concentrated in animal & vegetable

fasts, greases & oils and products; oil products; wheat; metal ores; and
pharmaceuticals.
- 68 -
5/2/1/2: Geographical Distribution of Export

Proceeds and Import Payments
The volume of trade between Egypt and the external world increased by
19.9 percent to US$ 42.2 billion during July-March, 2006/2007. The following two
charts display the geographical distribution of merchandise exports and imports.
Geographical Distribution of Imports

Geographical Distribution of Exports
African Asian countries

African countries 13.8%
countries Asian countries
1.5%
Arab countries 0.7% 16.4%
9.0% Arab countries Other countries
Other countries 13.1% 1.9%
Australia 5.0%
0.3% Australia EU
0.2% 34.6%
EU
U.S.A. 37.0%
U.S.A.
22.0%
29.6%
Other Other
European Federal Russia European
Federal Russia
& C.I.S.
& C.I.S. countries 0.6% countries
2.0% 7.6% 4.7%
The following table shows that the trade deficit with the EU countries
widened by 46.7 percent; other European countries by 40.3 percent and non-Arab
Asian countries by 15.8 percent. On the other hand, the trade surplus with the USA
shifted into a deficit of US$ 1.1 billion. Meanwhile, the deficit with the Arab
countries remarkably declined by 36.1 percent to only US$ 291.7 million; and so
did the deficit with the Russian Federation and CIS by 24.6 percent and Australia
by 74.3 percent. The surplus with non-Arab African countries decreased to only
US$ 59.1 million, against US$ 79.4 million during the corresponding period.
- 69 -
Geographical Distribution of Merchandise Transactions

(US$ mn)
July / March
Export Proceeds Import Payments Trade Balance
2005/06 2006/07 2005/06 2006/07 2005/06 2006/07
Grand Total 13460.4 15898.5 21723.2 26288.0 (8262.8) (10389.5)
EU 5274.2 5506.0 8147.6 9721.8 (2873.4) (4215.8)
Other European
Countries 684.2 751.0 1584.7 2014.3 (900.5) (1263.3)
Russian Federation
and CIS 44.6 100.1 598.9 517.8 (554.3) (417.7)
USA 4077.4 4707.4 3876.6 5776.3 200.8 (1068.9)
Arab Countries 1529.6 2076.5 1986.2 2368.2 (456.6) (291.7)
Asian Countries
(non-Arab) 1395.1 2189.8 3223.8 4307.9 (1828.7) (2118.1)
African Countries
(non-Arab) 193.7 238.6 114.3 179.5 79.4 59.1
Australia 14.4 24.9 231.8 80.7 (217.4) (55.8)
Other Countries
& Regions 247.2 304.2 1959.3 1321.5 (1712.1) (1017.3)
- 70 -
5/2/2: Services Balance and Transfers
The services balance ran a surplus of US$ 8.6 billion or 6.8 percent of GDP
during July-March, 2006/2007, against US$ 6.0 billion and 5.6 percent of GDP
during the corresponding period, denoting a rise of 43.5 percent in the reporting
period. This surplus was an outcome of a step-up in service receipts by 17.1
percent to US$ 15.1 billion and a decline in service payments by 6.2 percent to
only US$ 6.5 billion.
Service Receipts July/March 06/2007

‫رﺳﻢ ﺑﻴﺎﻧﻲ‬
٢٠٠٧ -٢٠٠٦ ‫ﻣﺎرس‬-‫اﻟﻤﺘﺤﺼﻼت اﻟﺨﺪﻣﻴﺔ ﻳﻮﻟﻴﻮ‬
Other; 11.7%
Transportation; 31.0%
Government Receipts; 1.6%
Investment Income; 14.7%
Travel; 41.0%
The rise in service receipts was attributed to an increase in travel revenues*

(tourism) by 11.1 percent to US$ 6.2 billion, (representing 4.8 percent of GDP).
The pickup in tourism revenues stemmed from the increase in the number of
tourist nights from 65.5 million during the previous corresponding period, to 72.8
million during the period under review.
* Calculated on the basis of the number of tourist nights multiplied by the average tourist spending per night.
- 71 -
US$ bn
Main items of service receipts July/March
7.0
6.2
6.0 5.6
5.0
5.0
4.0
2.6 3.1
3.0 2.4
2.0
1.0
0.0
2004/05 2005/06 2006/07
Suez canal Tourism Revenues
Transportation receipts stepped up by 28.5 percent to US$ 4.7 billion,

representing 3.7 percent of GDP. This was mainly ascribed to a rise in Suez Canal
earnings by 16.3 percent, because of the increase in the number of transiting ships
and net tonnage.
Investment income surged by 57.3 percent to US$ 2.2 billion, as a result of

the increase in the income receipts of financial investment (portfolio investment),
and the interest payments on foreign assets abroad, as well as the rise in world
interest rates.
Service payments went down by 6.2 percent to US$ 6.5 billion, mainly due
to a decline of 31.7 percent in "other payments". The decline was ascribed to
decreases in external transfers by Egyptian petroleum companies, securities
brokerage fees, and computer and communications services.
- 72 -
Services Payments July/March 2006/07
Tr ansport at ion, 14.0%

Other, 29.9%
Travel, 21.6%
Government Expendit ures, 13.8%
Invest ment Income, 20.7%
Government expenditures fell by 4.6 percent, owing to lower expenses of

Egyptian embassies and government medical treatment abroad.
In light of these developments, the coverage ratio of the services surplus to

the trade deficit recovered during the period under review as compared with the
same period a year earlier.
Coverage ratio of Services balance

to Trade Balance
July/March
%٨٣٫٢٠
2006/07
%٧٢٫٩٠
2005/06
%٨٣٫٥٠
- -
2004/05
- 73 -
0.65 0.70 0.75 0.80 0.85
(% )
- 73 -
Net unrequited transfers rose to represent 13.9 percent of current receipts

and 3.9% of GDP (against 13.5 percent and 3.8 percent, respectively during the
corresponding period).
Unrequited Transfers
(US$ mn)
July/March Change Change
2005/2006 2006/2007 (-) %
Net Current Transfers 4120.6 5007.2 886.6 21.5
1- Official Transfers (Net) 431.9 651.8 219.9 50.9
- Inward cash grants 129.3 360.3 231.0 178.7
- Other inward grants 318.3 315.4 (2.9) (0.9)
- Outward grants -15.7 -23.9 (8.2) 52.2
2- Private Transfers (Net) 3688.7 4355.4 666.7 18.1
- Workers' remittances 3734.8 4395.4 660.6 17.7
- Other transfers 27.5 66.8 39.3 142.9
- Foreigners' transfers abroad -73.6 -106.8 (33.2) 45.1
Against this background, the current account unfolded a surplus of US$ 3.3
billion as a result of a rise in current receipts by US$ 5.5 billion or 18.1 percent to
US$ 36.0 billion, and in current payments by US$ 4.1 billion or 14.5 percent to
US$ 32.7 billion.
Current Receipts and Payments

July/March
US$ bn
20.0 Exports
15.0
10.0 Service
5.0 Receipts
Private
0.0 Transfers (net)
-5.0 Official
-10.0 Transfers (net)
-15.0 Imports
-20.0
Service
-25.0 Payments
-30.0
- 74 -
Most of the current external transaction indicators improved as shown in the

following table.
Current Receipts/Payments Coverage Ratio (%)

July/March
2005/06 2006/07
Merchandise exports/merchandise imports 62.0 60.5
Service receipts/service payments 187.8 234.2
Current receipts (excluding official transfers) /current
105.1 108.0
payments
Current receipts/current payments 106.6 110.0
5/2/3: Capital and Financial Account
The capital and financial account revealed a net outflow of US$ 0.2 billion
during the period under review (against a net inflow of US$ 1.8 billion). This was
mainly attributed to the following factors:
The net outflow of other assets and liabilities (the change in banks’ foreign
assets and liabilities, the CBE’s non-reserve foreign assets, and the contra-
entries for some current account items) increased to US$ 9.2 billion during
the period under review (against US$ 5.5 billion during the period of
comparison).
Foreign investment in Egypt (direct and portfolio) achieved a total inflow of
US$ 18.8 billion, and a total outflow of US$ 9.5 billion during the period
under review (against US$ 18.7 billion and US$ 11.2 billion, respectively
during the period of comparison).
- Net FDI (US$ 9.0 billion) in Egypt∗ included net investments of US$
2.1 billion in the oil sector and privatization proceeds of US$ 2.8 billion
* Representing total flows of FDI to Egypt, less capital repatriation, and foreign investors' equity participation in
local enterprises that equals 10% or more of the capital of any enterprise.
- 75 -
(against US$ 1.6 billion and US$ 0.9 billion, respectively, during the
period of comparison). It is worth mentioning that the most important
sectors of FDI in Egypt (excluding the oil sector) during the reporting
period were the sectors of finance, communications and information
technology, and manufacturing.
- Net portfolio investment∗ in Egypt included net purchases of dollar-

denominated sovereign bonds by banks and insurance companies in
Egypt in the amount of US$ 292.8 million (outflows) during the period
under review. It also comprised foreigners' net purchases of US$ 716.8
million (inflows) on the Egyptian Exchange, in addition to US$ 195.5
million subscriptions for other bonds and notes.
Net Foreign Investments in Egypt July/March

(US$ bn)
10.0
9.0 9.0
8.0
7.0
6.0
5.0
4.6
4.0 3.1
3.0 2.9
2.0
1.0 0.6 0.2
0.0
2004/05 2005/06 2006/07
________________________________
* Representing foreigners' net portfolio (according to the CMA statement). This excludes foreign investors' equity
participation in local enterprises, which is equal to 10% or more of the capital of any enterprise. Included also
is the data of trading in Egyptian bonds and notes.
- 76 -
Medium- and long-term loans and facilities achieved a net repayment of US$
1.2 billion (against US$ 0.8 billion). This was an outcome of the following
factors:
a- Total repayments decreased to US$ 1.4 billion (from US$ 2.1 billion),
because of a 61.0 percent decline in the repayments of international
organizations' medium- and long-term loans, and a 58.2 percent drop
in suppliers' and buyers' medium- and long-term credit.
b- Total disbursements stepped down to US$ 0.2 billion (from US$ 1.3
billion), due to a fall in the disbursements of medium- and long-term
facilities by 96.8 percent, international organizations' loans by 76.6
percent and bilateral loans by 40.1 percent.
- 77 -
5/3: International Finance
Net flows of resources rose by US$ 1.8 billion to US$ 9.6 billion during
July-March 2006/2007, against US$ 7.8 billion during the corresponding period of
the previous FY. This was mainly attributed to the increase in net FDI in Egypt to
US$ 9.0 billion, against US$ 4.6 billion during the period of comparison. On the
other hand, Net portfolio investment in Egypt rolled down to US$ 228.5 million,
from US$ 2.8 billion.
Transactions on medium- and long-term loans and facilities revealed net

repayments of US$ 1.2 billion, against US$ 0.8 billion.
Net Resource Flows

(US$ mn)
July/March
2005/2006 2006/2007+ Change (-)
Total Net Flows 7770.8 9601.9 1831.1
- External Debt 645.3 582.3 (63.0)
• Bilateral loans -643.1 -804.7 (161.6)
Disbursements 155.3 93.1 (62.2)
Principal repayments -798.4 -897.8 (99.4)
• International organizations' loans -160.5 -149.9 10.6
Disbursements 560.9 131.2 (429.7)
Principal repayments -721.4 -281.1 440.3
• Medium- and long-term suppliers' and
buyers' credit 19.0 -225.9 (244.9)
Disbursements 604.8 19.1 (585.7)
Principal repayments -585.8 -245.0 340.8
• Short-term suppliers' and buyers' credit
(net) 1429.9 1762.8 332.9
- Official Grants (Net) 431.9 651.8 219.9
- Direct Investment in Egypt (Net) 4631.5 9045.3++ 4413.8
- Direct Investment Abroad -87.4 -444.5 (357.1)
- Portfolio Investment in Egypt (Net), of which: 2847.7 228.5 (2619.2)
• Bonds 2742.4 -488.3 (3230.7)
- Portfolio Investment Abroad -698.2 -461.5 236.7
+
Provisional
++
Including net FDI of US$ 2.1 billion in the oil sector and privatization proceeds of US$ 2.8 billion
- 78 -
Net resource transfers (net inflows less interest payments and profit
transfers) showed an inflow of US$ 8.3 billion, against US$ 6.7 billion. This was
an outcome of a substantial increase in resource inflows (net) to reach US$ 9.6
billion. Total outflows climbed to US$ 1.3 billion (more than half of which was
transfers of FDI profits).
Net Resource Transfers from Abroad

(US$ mn)
July/March
2005/2006 2006/2007
Net Resources from Abroad 6670.7 8270.9
- Net Inflows 7770.8 9601.9
- Outflows (Interest Payments and Profit -1100.1 -1331.0
Transfers):
1- External Loans and Facilities -425.4 -441.0
o Bilateral loans -295.1 -306.7
o International organizations' loans -101.1 -107.8
o Suppliers' and buyers' credit -29.2 -26.5
2- Deposits at Egyptian Banks -39.1 -49.6
3- Profit Transfers of Foreign Direct Investment -475.2 -679.1
4- Profit Transfers of Portfolio Investment -160.4 -161.3
5/3/1: FDI in Egypt
Thanks to the stable investment climate in Egypt, net FDI was steadily on
the rise, doubling to US$ 9.0 billion in July-March 2006/2007, against US$ 4.6
billion during the same period of 2005/2006. The rise was an outcome of a 58.2
percent increase in total investment inflows, to reach US$ 10.4 billion, and a
decrease in capital repatriation, to stand at US$ 1.4 billion.
Flows from the Arab countries made a noticeable jump of US$ 2.7 billion,
hitting US$ 3.1 billion, due to larger inflows from the UAE. Similarly, flows from
the EU countries rose by US$ 1.2 billion to US$ 3.5 billion and from the rest of the
world by US$ 0.3 billion to US$ 0.8 billion. Conversely, flows from the USA
retreated by US$ 0.3 billion to US$ 3.0 billion.
- 79 -
FDI in Egypt
(US$ mn)
July/March Change
2005/2006 2006/2007 (-)
Flows of FDI in Egypt (Net) 4631.5 9045.3 4413.8
Inflows 6604.3 10447.3 3843.0
USA 3374.0 3054.7 (319.3)
EU Countries 2311.4 3477.9 1166.5
Germany 96.8 74.9 (21.9)
France 552.8 34.2 (518.6)
UK 1124.0 1681.3 557.3
Italy 17.0 1628.3 1611.3
Greece 139.1 8.4 (130.7)
Cyprus 6.2 2.6 (3.6)
Spain 358.8 6.6 (352.2)
The Netherlands 4.1 28.3 24.2
Belgium 8.7 8.7
Austria 0.8 1.5 0.7
Denmark 0.9 1.8 0.9
Romania 10.5 0.1 (10.4)
Others 0.4 1.2 0.8
Arab Countries 357.6 3095.0 2737.4
Saudi Arabia 17.1 172.0 154.9
UAE 30.0 2880.6 2850.6
Kuwait 55.4 12.0 (43.4)
Lebanon 182.5 10.5 (172.0)
Libya 3.8 2.3 (1.5)
Jordan 0.8 3.2 2.4
Bahrain 65.1 2.5 (62.6)
Qatar 2.6 2.4 (0.2)
Others 0.3 9.5 9.2
Other Countries 561.3 819.7 256.1
Switzerland 27.6 45.0 17.4
Japan 4.2 0.6 (3.6)
Canada 0.8 4.8 4.0
China 0.7 8.3 7.6
Australia 0.1 7.6 7.5
India 0.2 0.2
Turkey 6.1 6.1
Bermuda 3.0 3.0
Others 525.6 743.9 218.3
Capital Repatriation -1972.8 -1402.0 570.8
- 80 -
5/3/2: Official Grants (Unrequited Transfers)
Net transfers of official grants (cash and in-kind) mounted to US$ 0.7 billion
(against US$ 0.4 billion), up by 50.9 percent.
Transfers of Official Grants

(US$ mn)
July/March
Change
2005/2006 2006/2007
Official Grant Transfers (Net) 431.9 651.8 219.9
- Inward cash grants 129.3 360.3 231.0
- Other inward grants 318.3 315.4 (2.9)
- Outward grants -15.7 -23.9 (8.2)
According to the Ministry of International Cooperation, total grant

commitments during the period under review went up by US$ 310.0 million to
US$ 567.9 million, mostly made with the USA. In addition, new commitments
were also made with Germany and Denmark.
A breakdown of actual inflows of official grants indicated a rise in those

from the USA. Outflows also went up by 52.2 percent to US$ 23.9 million during
the statement period.
- 81 -
Official Grants: New Commitments and Net Actual Flows

(US$ mn)
New Commitments Actual Flows
July/March
2005/2006 2006/2007 2005/2006 2006/2007
Net Inflows 431.9 651.8
Inflows 257.9 567.9 447.6 675.7
USA 124.1 414.4 299.3 556.4
Japan 0.5 7.3 10.7 4.4
Germany 21.6 24.8 25.6
Italy 1.0 2.3
UK 2.9 0.1
France 0.3
Denmark 4.2
Belgium 78.9
Finland 0.6
Austria 0.1
China 4.0
Canada 1.8 2.5
Saudi Arabia 107.0 0.3
Kuwait 0.9
EU 124.4 116.1
International Fund for
Agricultural
Development 1.0
African Development
Bank 0.9
Arab Fund for Economic
and Social Development 6.7 0.9
Global Environmental
Facility 0.3
Kuwaiti Fund for
Development 1.0
World Bank 0.6 1.2
Outflows -15.7 -23.9
- 82 -
A sectoral breakdown of grant commitments showed that the bulk of

increase (US$ 343.9 million) was in commitments for the services sector, as new
commitments were contracted upon for wholesale and retail trade; larger
commitments for the sectors of general government, and health and education; and
lower commitments for transportation and communications. Commitments for the
productive sectors declined by US$ 33.9 million to US$ 73.2 million (mainly for
agriculture and irrigation). New commitments for construction and building were
made.
Breakdown of Official Grant Commitments
(By Beneficiary)
(US$ mn)
July/March
Change
2005/2006 % 2006/2007 %
Total 257.9 100.0 567.9 100.0 310.0
Productive Sectors: 107.1 41.5 73.2 12.9 (33.9)
Agriculture and irrigation 103.9 40.3 7.6 1.3 (96.3)
Manufacturing 2.6 1.0 (2.6)
Potable water & sanitary
0.6 0.2 5.1 0.9 4.5
sewage
Construction and building 60.5 10.7 60.5
Service Sectors: 150.8 58.5 494.7 87.1 343.9
Transportation,
communications and
information 5.6 2.2 4.4 0.8 (1.2)
Wholesale and retail trade 197.3 34.7 197.3
General government 46.9 18.2 168.7 29.7 121.8
Education and health 88.3 34.2 120.8 21.3 32.5
Others 10.0 3.9 3.5 0.6 (6.5)
5/3/3: External Debt
At end of March 2007, the balance of external debt (public and private
denominated in US dollar -all maturities) amounted to US$ 28.7 billion (22.4
percent of GDP), down by US$ 0.9 billion as compared with the end of June 2006.
The decline was caused by the net repayment of loans and facilities in the amount
- 83 -
of US$ 1.5 billion (repayments of US$ 2.2 billion less disbursements of only US$
0.7 billion), combined with the rise in most currencies of borrowing versus the US
dollar by US$ 0.6 billion during the period.
Medium- and long-term external debt registered about US$ 27.2 billion or
94.7 percent of total debt at end of March 2007. Of this amount, US$ 19.4 billion
or 67.4 percent were owed to Paris Club members in the form of bilateral loans
(rescheduled and non-rescheduled) and suppliers’ and buyers’ credit. Debt due to
countries other than Paris Club members amounted to US$ 0.7 billion or 2.5
percent of the total. Debts to international and regional organizations reached US$
5.5 billion or 19.2 percent of total external debt (mostly owed by the public sector,
with a share of 92.8 percent). The balance of Egyptian bonds and notes (holdings
of non-residents) registered US$ 1.6 billion or 5.4 percent of the total (consisting
of US$ 1.3 billion guaranteed government securities, and US$ 0.3 billion dollar-
denominated sovereign bonds). Non-guaranteed debt of the private sector posted
US$ 0.1 billion or 0.3 percent.
Structure of External Debt by Maturity

(US$ mn)
Balances at End of Relative Relative Change (-)
Value Value
Importance Importance
Total External Debt 29592.6 100.0 28743.5 100.0 (849.1)
1- Medium- and long-term debt 27959.6 94.5 27232.0 94.7 (727.6)
- Rescheduled bilateral loans 15229.0 51.5 14896.5 51.8 (332.5)
• Concessional 7610.6 25.7 7475.7 26.0 (134.9)
• Non-concessional 7618.4 25.8 7420.8 25.8 (197.6)
- Other bilateral loans 4295.5 14.5 4399.8 15.3 104.3
• Paris Club countries 3590.4 12.1 3685.3 12.8 94.9
• Other countries 705.1 2.4 714.5 2.5 9.4
- International and regional
organizations 5205.0 17.6 5504.9 19.2 299.9
- Suppliers' and buyers' credit 979.5 3.3 782.7 2.7 (196.8)
- Egyptian bonds and notes 1861.9 6.3 1569.1 5.4 (292.8)
- Long-term deposits 300.0 1.0 0.0 0.0 (300.0)
- Debt of private sector (non-
guaranteed) 88.7 0.3 79.0 0.3 (9.7)
2- Short-term debt 1633.0 5.5 1511.5 5.3 (121.5)
• Deposits 633.1 2.1 480.6 1.7 (152.5)
• Facilities 999.9 3.4 1030.9 3.6 31.0
- 84 -
The balance of short-term debt fell to US$ 1.5 billion or 5.3 percent, 52.8
percent of which is owed by the private sector.
At end of March 2007, the debt owed by the public sector (official debt)
posted US$ 27.4 billion, representing 95.5 percent of total external debt. The
private sector’s debt remained nearly stable at US$ 1.3 billion or 4.5 percent.
Exte rnal De bt by Type

End of March
(US $ mn)
35000
30000
25000
20000
15000
10000
5000
0
2005 2006 2007
Short-term debt International & regional Organizations

Other bilateral debt Rescheduled bilateral debt
Suppliers' & buyers' credits Private sector debt (non-guaranteed)
Egyptian bonds and notes Long- term deposits
Distribution of external debt by debtor showed a reduction in the debts of

the central government, the monetary authority (the Central Bank) and banks. The
central government’s debt declined by around US$ 408.9 million to US$ 18.5
billion, the CBE’s by US$ 319.6 million to US$ 0.3 billion and banks’ by US$
316.8 million to US$ 1.8 billion. In contrast, the balances of the other sectors
escalated by about US$ 196.2 million to US$ 8.1 billion. Nevertheless, these
developments have not resulted in any tangible change in the external debt
structure by debtor, as the central government continued to account for the bulk
(64.2 percent), followed by the other sectors (28.3 percent), banks (6.3 percent)
and the monetary authority( 1.2 percent) at end of March 2007.
- 85 -
External Debt External Debt by Debtor

grow th by sectoral share % End of March
during July/March
Central & Local Government
Monetary Authority (CBE) 1.00
Banks
Other Sectors 0.80
600 533.4
0.60
400 331.6
196.2 0.40
200
48.1 48
0.20
(US$ mn)
-200
-56.3
-89.8 0.00
-170.8
2005 2006 2007
-400 -300 -319.6 -316.8 Other Sectors
-408.9 Banks
-600 CBE
2004/2005 2005/2006 2006/2007 Central & Local Government
A breakdown of external debt by creditor indicates that 54.2 percent of the

total is due to the four main Paris Club members; namely France (15.8 percent),
the USA (14.2 percent), Germany (12.3 percent) and Japan (11.9 percent).
Moreover, the debt owed to the Arab countries combined reached 3.5 percent,
mainly to Kuwait (1.9 percent), Saudi Arabia (0.5 percent) and the UAE (0.4
percent). The debt owed to the international and regional organizations posted 19.1
percent; mostly due to the European Investment Bank (6.0 percent).
- 86 -
External Debt by Main Creditor

(US$ mn)
At End of Relative Relative
Value Importance Value Importance
Total External Debt 29592.6 100.0 28743.5 100.0
USA 4318.6 14.6 4072.1 14.2
Japan 3587.9 12.1 3410.7 11.9
EU Countries, of which: 12017.6 40.6 11993.2 41.7
France 4635.3 15.7 4558.0 15.8
Germany 3323.5 11.2 3546.7 12.3
Spain 831.8 2.8 829.3 2.9
Italy 761.0 2.6 715.3 2.5
UK 1417.6 4.8 1298.9 4.5
Austria 538.5 1.8 540.6 1.9
Others 509.9 1.7 504.4 1.7
Arab Countries, of which: 1097.5 3.7 1033.9 3.5
Kuwait 535.5 1.8 535.3 1.9
Saudi Arabia 187.0 0.7 153.6 0.5
UAE 96.0 0.3 110.9 0.4
Bahrain 8.6 0.0 14.0 0.0
Others 207.4 0.9 220.1 0.7
Other Countries 1504.1 5.1 1159.6 4.1
Switzerland 468.9 1.6 428.9 1.5
Australia 188.0 0.6 189.4 0.7
Canada 260.1 0.9 236.1 0.8
China 121.6 0.4 142.3 0.5
Others 465.5 1.6 162.9 0.6
International and Regional
Organizations 5205.0 17.6 5504.9 19.2
IDA 1340.0 4.5 1414.8 4.9
European Investment Bank 1591.0 5.4 1711.9 6.0
Arab Fund for Economic and
Social Development 961.8 3.2 901.8 3.1
African Development Fund and
Bank 434.5 1.5 442.5 1.5
World Bank 353.9 1.2 511.0 1.8
Arab Monetary Fund 364.4 1.2 344.6 1.2
Islamic Development Bank
(Jeddah) 53.0 0.2 58.1 0.2
Other organizations 106.4 0.4 120.2 0.4
Egyptian Bonds and Notes 1861.9 6.3 1569.1 5.4
- 87 -
A breakdown of external debt by component currencies indicated that the

US dollar accounted for the bulk of the total external debt (39.5 percent), due to
outstanding obligations in US dollar to creditors other than the USA. The euro
came next with 34.2 percent, then the Japanese yen (11.8 percent) and the Kuwaiti
dinar (4.9 percent), as illustrated by the following figure.
External Debt by Major Currencies

End of March 2007
EURO
Kuw aiti Dinar
34.2%
4.9%
Japanese Yen
11.8%
SDR
5.0%
Pound Sterling
0.9%
Other Currencies
Sw iss Franc 1.8%
1.9% USD
39.5%
During July/March 2006–2007, the new commitments on loans and facilities

reached US$ 1.9 billion. The bulk of this amount (88.2 percent) was borrowed
from international and regional organizations; particularly the African
Development Bank (US$ 0.6 billion) and the International Bank for
Reconstruction and Development (IBRD) (US$ 0.5 billion). Moreover, suppliers'
and buyers' credit accounted for US$ 172.8 million or 9.1 percent of total
commitments, followed by bilateral loans by US$ 50.9 million or 2.7 percent.
As for external debt service, total payments of debt service (interest and
principal repayments) went down by US$ 625.9 million, standing at some US$ 2.0
billion during the period under review. This was the outcome of a drop of US$
681.7 million in principal repayments (medium- and long-term), to reach US$ 1.4
billion and the increase of US$ 55.8 million in interest payments, to US$ 553.9
million.
- 88 -
Owing to a decline of 24.0 percent in debt service and a pickup of 18.1

percent in exports (goods and services) and transfers during July/March 2006–
2007, the ratio of debt service to current receipts (including transfers) improved to
5.5 percent from 8.5 percent. Likewise, the ratio of debt service to the export
proceeds of goods and services fell from 9.9 percent to 6.4 percent.
External debt/GDP ratio improved, registering 22.4 percent (against 26.9

percent) at end of March 2007. In the meantime, the ratio of short-term debt to
total debt increased from 5.1 percent to 5.3 percent, whereas its ratio to net
international reserves declined from 6.6 percent to 5.7 percent.
Main Indicators of External Debt

(%)
July/March
2004/2005 2005/2006 2006/2007
Debt balance/GDP 32.5 26.9 22.4
Debt balance/exports of goods and services 143.1 109.8 92.8
Debt service/exports of goods and services 9.2 9.9 6.4
Debt service/current receipts (including transfers) 7.8 8.5 5.5
Interest payments*/exports of goods and services 2.3 1.9 1.8
Interest payments*/ current receipts (including
transfers) 1.9 1.6 1.5
Short-term debt/total debt 5.4 5.1 5.3
Short-term debt/net international reserves 9.1 6.6 5.7
External debt per capita (US$) 420.4 392.8 383.1
* Including interest payments on bonds and notes held with non-residents
- 89 -
6- Tourism
The CAPMAS statistics on tourism flows to Egypt revealed a number of

positive indicators during July/March 2006/2007, as compared with the
corresponding period of the previous FY. The number of arrivals rose by 11.0
percent to some 7.2 million and tourist nights of departures by 11.1 percent to 72.8
million.
Number of tourists & tourist nights during July/March
million tourists million nights

7.4 74
7.2 72
7 70
6.8 68
6.6 66
6.4 64
6.2 62
6 60
2004/2005 2005/2006 2006/2007
Number of tourists Tourist Nights of Departures
Tourism revenues augmented by 11.1 percent to US$ 6.2 billion (against

US$ 5.6 billion during the corresponding period), constituting as such 6.8 percent
of GDP at current market prices during the reporting period. Tourism revenues
represented about 20.0 percent of the BOP visible and invisible receipts. The
pickup in revenues was due to a rise in the average stay by 0.9 percent to 10.8
nights against 10.7 nights. However, average tourist spending per night remained
at the same previous level of US$ 85.
- 90 -
Investments in the tourism sector (restaurants and hotels) amounted to some

LE 2.1 billion or 2.0 percent of total implemented investments. The private sector
undertook around 80.3 percent of these investments during July/March 2006/2007.
Tourism Indicators
2004/2005 2005/2006 2006/2007

July/ Change July/ Change July/ Change
March + (-) % March + (-) % March + (-) %
Number of arrivals (000s)* 6491 15.9 6501 0.2 7216 11.0
Number of departures (000s) 6137 17.1 6113 (0.4) 6720 9.9
Number of tourist nights of
departures (000s) 66154 19.4 65493 (1.0) 72781 11.1
Average spending per tourist
a night (US$) 75.0 0.0 85.0 13.3 85.0 0.0
Tourism revenues (US$ mn) 4962 19.4 5567 12.2 6186 11.1
Average tourist stay (night) 10.8 1.9 10.7 (0.9) 10.8 0.9
Source: CAPMAS and CBE
* Excluding non-resident Egyptians coming for temporary purposes
- 91 -
6/1: Tourists
During July/March 2006/2007, total visitors from all tourist groups

amounted to some 7.2 million, up by 715 thousand or 11.0 percent, as compared
with the corresponding period of the previous FY. The increase was due to a
recovery of tourism flows from all tourism-exporting markets.
Number of Tourist Arrivals

(000s)
July/March
2004/2005 2005/2006 2006/2007
No. Relative Change No. Relative Change No. Relative Change
Weight + (-) % Weight + (-) % Weight + (-) %
Total 6491 100.0 15.9 6501 100.0 0.2 7216 100.0 11.0
By Period
July/Sept. 2390 36.8 23.3 2214 34.1 (7.4) 2269 31.4 2.5
Oct./Dec. 1999 30.8 7.6 2133 32.8 6.7 2467 34.2 15.7
Jan./March 2102 32.4 16.6 2154 33.1 2.5 2480 34.4 15.1
By Group
Europe 4494 69.2 22.8 4330 66.6 (3.6) 4899 67.9 13.1
Middle
East 1312 20.2 (1.9) 1405 21.6 7.1 1433 19.8 2.0
Africa 190 2.9 18.0 204 3.1 7.4 239 3.3 17.2
The
Americas 201 3.1 17.5 234 3.6 16.4 253 3.5 8.1
Asia and
the Pacific 291 4.5 9.0 325 5.0 11.7 388 5.4 19.4
Others 3 0.1 0.0 3 0.1 0.0 4 0.1 33.3
Source: CAPMAS
- 92 -
Numbe r of tourist arriv als through the pe riod July/M arch 2006/2007
Asian & Pacific

The Americas Countries Others
3.5% 5.4% 0.1%
African countries
3.3%
European
Middle East countries
countries 67.9%
19.8%
The European markets remained the major provider of tourists (67.9 percent
of the total). Arrivals from this group rose by some 569 thousand or 13.1 percent.
The increase mostly came from Eastern European markets, with a rise of some 388
thousand or 32.1 percent, chiefly from the Russian Federation (307 thousand).
Moreover, arrivals from Western Europe scaled up by some 180 thousand or 5.8
percent, mainly from Germany (70 thousand), the UK (54 thousand), and Italy (34
Continuing to rank second (19.9 percent), visitors from the Middle East
markets picked up by about 28 thousand or 2.0 percent. The increase was mainly
pronounced in arrivals from Libya (56 thousand), Jordan (23 thousand), Kuwait
(24 thousand), Saudi Arabia (19 thousand), and Iraq (15 thousand). In contrast,
there was a fall in the number of arrivals from Palestine (94 thousand).
- 93 -
The Asian and Pacific markets ranked third, with a share of 5.4 percent of
the total. The number of arrivals therefrom went up by some 63 thousand or 19.4
percent. Almost 67 percent of the increase came from Japan (24 thousand) and
China (18 thousand).
The number of arrivals from the Americas group rose by around 19 thousand
or 8.1 percent, coming mostly from the USA (13 thousand), and Canada (6
thousand).
Moreover, arrivals from the African markets augmented by approximately

35 thousand or 17.2 percent, mainly from the Sudan (22 thousand), and Algeria (6
thousand).
- 94 -
6/2: Tourist Nights
The increase in the number of tourists was associated with an upward trend
in the number of nights spent by departures during the period under review. As
such, the number of tourist nights totaled some 72.8 million, up by 7.3 million or
11.1 percent over the corresponding period of the previous year. The increase was
mainly realized during the last two quarters of the period. Moreover, the average
stay per tourist climbed by 0.9 percent to post 10.8 nights during the same period.
Number of Tourist Nights of Departures

(000s)
July/March
2004/2005 2005/2006 2006/2007
No. Relative Change No. Relative Change No. Relative Change
Weight + (-) % Weight + (-) % Weight + (-) %
Total 66154 100.0 19.4 65493 100.0 (1.0) 72781 100.0 11.1
By Period
July/Sept. 28146 42.5 29.3 27316 41.7 (2.9) 28854 39.6 5.6
Oct./Dec. 18677 28.3 14.0 18949 28.9 1.5 21602 29.7 14.0
Jan./March 19331 29.2 12.1 19228 29.4 (0.5) 22325 30.7 16.1
By Group
Europe 41861 63.3 23.4 39644 60.5 (5.3) 44100 60.6 11.2
Middle
East 16760 25.3 11.2 17579 26.8 4.9 19018 26.1 8.2
Africa 2221 3.4 23.3 2455 3.7 10.5 2971 4.1 21.0
The
Americas 2817 4.2 17.8 3111 4.8 10.4 3493 4.8 12.3
Asia and
the Pacific 2450 3.7 13.5 2652 4.1 8.2 3145 4.3 18.6
Others 45 0.1 9.8 52 0.1 15.6 54 0.1 3.8
Source: Ibid.
The European markets accounted for the highest relative weight (60.6
percent of the total nights) as the higher number of arrivals therefrom was
associated with a rise in the number of nights spent by departures (up by 4.5
million or 11.2 percent over the previous corresponding period). The increase was
- 95-
mainly ascribed to a rise in tourist nights by departures from Eastern Europe by

3.5 million or 32.9 percent, mostly from the Russian Federation (2.9 million). In
addition, an increase of around 913 thousand was seen in the nights of departures
from Western Europe, mainly by departures from the UK (548 thousand), Italy
(212 thousand) and the Benelux (206 thousand). There was a decline in the number
of tourist nights by departures from some other countries including the
Scandinavian countries (416 thousand), and France (113 thousand).
Tourist nights of Departures according to groups during July/March

2006/2007
The Americas Asian & Pacific
4.8% Countries
4.3% Others
African countries 0.1%
4.1%
European countries
60.6%
Middle East countries

26.1%
The number of nights by departures from the Middle East markets went up
by 1.4 million or 8.2 percent, mainly from Libya (314 thousand), followed by
Saudi Arabia (304 thousand), Kuwait (235 thousand) and Iraq (229 thousand).
Tourist nights by departures from Asian and Pacific markets recorded a rise
of 492 thousand or 18.6 percent, mostly from Japan (137 thousand), China (111
thousand), and India (54 thousand).
- 96 -
Tourist nights by departures from the Americas markets surged by around

383 thousand or 12.3 percent, chiefly from the USA (285 thousand), and Latin
America (19 thousand).
As for the African markets, the number of nights by departures therefrom

augmented by about 516 thousand or 21.0 percent, mainly from the Sudan (373
thousand).
Annex
- 97 -
Statistical Section
1- Indicators of Development and Economic Growth
(1/1) GDP at Factor Cost by Economic Sector (at 2001/2002 Prices)

(1/2) Wholesale Price Index (1999/2000=100)
(1/3) Consumer Price Index (Urban Population) (1999/2000=100)
(1/4) Consumer Price Index (Rural Population) (1999/2000=100)
2- Monetary and Banking Development
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 Organs
- Structure of the Egyptian Banking System as at end of March 2007

- Mutual Funds Licensed and Operating up to end of March 2007
- 98 -
Activity of the Banking System
Central Bank of Egypt
(2/2/1) Note Issued Including Cash in CBE Vaults by Denomination

(2/2/2) Currency in Circulation Outside CBE by Denomination
(2/2/3) Clearing House Activities
Banks
(2/3/1) Aggregate Financial Position

(2/3/2) Deposits by Maturity
(2/3/3) Deposits by Sector
(2/3/4) Deposits by Economic Activity
(2/3/5) Portfolio Investment by Sector
(2/3/6) Lending and Discount Balances by Sector
(2/3/7) Credit by Sector
(2/3/8) Lending and Discount Balances by Economic Activity
Interest Rates
(2/4) Discount and Interest Rates on Deposits and Loans in Egyptian Pound
(2/5) Domestic Interest Rates on 3- Month Deposits in Major Currencies
(2/6) The Return Rate on Treasury Bills (Weekly Weighted Average)
3- Stock Exchange
(3/1) Companies Listed on the Stock Exchange

(3/2) Trading in Shares on the Stock Exchange
(3/3) Trading in Bonds on the Stock Exchange
- 99 -
(3/4) Global Depository Receipts (GDRs)

(3/5) Outstanding Balance of Treasury Bills (Quarterly)
(3/6) Outstanding Balance of Treasury Bills (Weekly)
(3/7) Outstanding Balance of Treasury Bonds
4- Public Finance & Domestic Public Debt
(4/1) Consolidated Fiscal Operations of General Government (Expenditures)

(4/2) Consolidated Fiscal Operations of General Government (Revenues)
(4/3) Summary of Consolidated Fiscal Operations of General Government
(4/4) Domestic Debt of Government & Public Economic Authorities
(4/5) National Investment Bank (Resources & Uses)
(5/1) Balance of Payments (LE)

(5/2) Balance of Payments (US$)
(5/3) Exports by Degree of Processing
(5/4) Imports by Degree of Use
(5/5) Regional Distribution of Exports and Imports
(5/6) Average LE Exchange Rates against Foreign Currencies (in Piasters per
Foreign Currency Unit)
(5/7) Structure of External Debt
(5/8) Distribution of External Debt by Main Currency
6- Tourism
(6/1) Number of Arrivals and Tourist Nights of Departures (by Group)

(6/2) Number of Tourists (Departures) & Average Stay
( 1 / 1 ) GDP at Factor Cost by Economic Sector
At 2001/2002 prices
( LE mn)
July / March
Growth Rate %
Sectors 2005/2006 2006/2007 2006/2007
Public Private Total Public Private Total Public Private Total

GDP 105460.8 215520.5 320981.3 112076.2 231133.0 343209.2 6.3 7.2 6.9
Agriculture, Irrigation & Fishing 7.6 50442.4 50450.0 8.0 52162.3 52170.3 5.3 3.4 3.4
Mining 23532.3 4220.7 27753.0 24698.6 4454.4 29153.0 5.0 5.5 5.0
Oil 10694.0 1628.0 12322.0 10601.0 1629.0 12230.0 -0.9 0.1 -0.7
Gas 12603.0 2279.0 14882.0 13855.0 2500.0 16355.0 9.9 9.7 9.9
Others 235.3 313.7 549.0 242.6 325.4 568.0 3.1 3.7 3.5
Manufacturing Industries 7741.4 52127.1 59868.5 8162.2 55833.9 63996.1 5.4 7.1 6.9
Oil refining 1348.0 903.0 2251.0 1309.0 865.0 2174.0 -2.9 -4.2 -3.4
Others 6393.4 51224.1 57617.5 6853.2 54968.9 61822.1 7.2 7.3 7.3
- 100 -
Electricity 5025.9 683.0 5708.9 5354.5 720.0 6074.5 6.5 5.4 6.4
Water 1362.7 0.0 1362.7 1459.7 0.0 1459.7 7.1 - 7.1
Construction & Building 1738.3 12989.2 14727.5 1915.7 15088.1 17003.8 10.2 16.2 15.5
Transportation & Storage 2718.2 13155.4 15873.6 2911.4 14199.9 17111.3 7.1 7.9 7.8
Communications 300.5 7016.3 7316.8 339.2 7984.4 8323.6 12.9 13.8 13.8
Suez Canal 10626.0 0.0 10626.0 12325.1 0.0 12325.1 16.0 - 16.0
Wholesale & Retail Trade 1482.7 37507.1 38989.8 1585.9 40721.8 42307.7 7.0 8.6 8.5
Financial Intermediation
& Supporting Services
11603.3 6106.2 17709.5 12414.2 6511.8 18926.0 7.0 6.6 6.9
Insurance & Social Solidarity 7778.8 180.7 7959.5 8285.1 191.3 8476.4 6.5 5.9 6.5
Restaurants & Hotels 109.3 10667.2 10776.5 118.4 12047.6 12166.0 8.3 12.9 12.9
Real Estate Activities 422.0 11055.9 11477.9 437.8 11456.0 11893.8 3.7 3.6 3.6
Real Estate Ownership 197.4 5866.1 6063.5 204.6 6079.2 6283.8 3.6 3.6 3.6
Business Services 224.6 5189.8 5414.4 233.2 5376.8 5610.0 3.8 3.6 3.6
General Government 30434.1 0.0 30434.1 31454.2 0.0 31454.2 3.4 - 3.4
Education, Health & Personal Services 577.7 9369.3 9947.0 606.2 9761.5 10367.7 4.9 4.2 4.2
Education 0.0 2243.9 2243.9 0.0 2341.5 2341.5 0.0 4.3 4.3
Health 577.7 3248.7 3826.4 606.2 3372.3 3978.5 4.9 3.8 4.0
Others 0.0 3876.7 3876.7 0.0 4047.7 4047.7 0.0 4.4 4.4
Source : Ministry of State for Economic Development.
(1/2) Wholesale Price Index (1999/2000=100)
Change Rate %
Relative 2006 2007 July/March The Year Ending
Weights March June March 2006/2007 March 2007
General Index 100.0 168.1 177.1 194.5 9.8 15.7
Farm Products 34.4 187.9 207.2 238.3 15.0 26.9
Food Stuffs 18.2 169.1 172.5 177.4 2.8 4.9
Beverages & Tobacco 2.7 169.0 169.0 196.1 16.0 16.0
Yarn &Textiles 3.9 173.2 173.2 174.3 0.6 0.6
Wearing Apparel 1.4 124.5 124.5 124.5 0.0 0.0
- 101 -
Leather & Footwear 0.2 174.9 174.9 182.5 4.3 4.3
Wood & its Products 1.5 167.1 167.1 190.4 13.9 14.0
Paper & Printing 1.7 154.3 154.3 156.3 1.3 1.3
Chemicals & its products 7.4 126.6 126.4 127.2 0.6 0.5
Fuel & Related Products 10.5 125.1 125.1 142.8 14.1 14.2
Rubber & Plastic Products 0.6 144.0 142.7 146.7 2.8 1.9
Nonmetallic Mineral Products 3.5 131.9 132.3 143.3 8.3 8.6
Metals 5.2 238.8 248.2 284.3 14.5 19.1
Metallic Prods.,Machinery&Equipment 5.4 148.2 164.2 170.6 3.9 15.2
Transportation Equipment 2.8 162.0 175.4 176.6 0.7 9.0
Other Manufacturing Products 0.6 208.2 205.7 223.3 8.6 7.3
Source : Central Agency for Public Mobilization and Statistics (Monthly Bulletin of Wholesale Price Index released every two months).
(1/3) Consumer Price Index (Urban Population ) (1999/2000=100)
2006 2007 Change Rate %

Relative March June March July/March TheYear
End of Weights 2006/2007 Ending
March 2007
General Index 100.0 138.8 144.8 156.6 8.1 12.8
Food & non- alcoholic beverages 38.9 157.1 168.2 183.3 9.0 16.6
Tobacco 2.8 136.1 146.2 146.2 0.0 7.4
Clothing textiles & footwear 10.4 130.9 131.9 137.9 4.5 5.3
Housing , water,elect.,gas& fuel 11.7 114.9 114.9 121.5 5.7 5.7
- 102 -
Furniture, household equipment &
4.9 137.3 138.0 144.6 4.8 5.3
maintenance
Health 4.6 125.0 125.0 128.6 2.9 2.9
Transport 5.6 126.4 127.0 139.5 9.8 10.4
Communication 2.0 178.7 216.6 219.1 1.2 22.7
Recreation &Culture 5.9 121.6 128.2 153.2 19.5 26.1
Education 5.7 125.0 125.0 138.9 11.1 11.1
Hotels& Restaurants 2.5 130.1 130.1 141.1 8.5 8.4
Miscellaneous 5.0 122.1 124.3 138.4 11.3 13.4

Source: Central Agency for Public Mobilization and Statistics (Monthly Bulletin for Consumer Price Index).
(1/4) Consumer Price Index (Rural Population ) (1999/2000=100)
2006 2007 Change Rate %

Relative March July March Aug./March TheYear
End of Weights 2006/2007 Ending
March 2007
General Index 100.0 139.4 146.5 158.4 8.1 13.6
Food & non- alcoholic beverages 50.8 153.7 162.9 179.5 10.2 16.8
Tobacco 3.6 132.3 141.4 141.4 0.0 6.9
Clothing textiles & footwear 9.5 131.5 132.7 137.4 3.5 4.4
Housing , water,elect.,gas& fuel 14.0 116.8 116.8 127.4 9.1 9.1
- 103 -
Furniture, household equipment &
maintenance
3.9 128 129.3 135.1 4.5 5.6
Health 3.7 125.5 126.4 129.1 2.1 2.9

Transport 2.6 128.5 129.1 138.5 7.3 7.7
Communication 0.4 191.7 242.9 242.9 0.0 26.7
Recreation &Culture 3.3 125.0 163.2 163.2 0.0 30.6
Education 3.4 118.2 118.2 127.3 7.7 7.7
Hotels& Restaurants 1.5 128.3 139.6 139.6 0.0 8.8
Miscellaneous 3.3 118.0 124.9 143.6 15.0 21.7
Source: Central Agency for Public Mobilization and Statistics (Monthly Bulletin for Consumer Price Indices (rural) released
every two months).
(2/1/1) CBE Financial Position : Reserve Money and Counterpart Assets
( LE mn )
2004 2005 2006 2007
End of March June March June March June March
Reserve Money 91410 94288 99477 101080 112160 116050 126474
Currency in circulation outside CBE 56435 59415 64704 67241 74458 78604 88195
Bank deposits in local currency 34975 34873 34773 33839 37702 37446 38279
Counterpart Assets 91410 94288 99477 101080 112160 116050 126474

Net foreign Assets 6647 9858 27500 37295 60860 61302 82617
Foreign Assets 85088 88313 101872 108738 126997 129477 147426
Gold 3808 4437 4437 4500 4500 6429 6429
Foreign securities 17099 17104 20789 16665 33094 48353 97896
Foreign currencies 64181 66772 76646 87573 89403 74695 43101
- 104 -
Foreign liabilities 78441 78455 74372 71443 66137 68175 64809
Net Domestic Assets 84763 84430 71977 63785 51300 54748 43857
Net claims on Government 98605 99472 117824 122264 117966 114055 113437
Claims; of which 161657 181313 221786 227367 181481 171808 187580
Government securities 126324 164441 201071 208021 168405 164761 164761
Deposits 63052 81841 103962 105103 63515 57753 74143
Net Claims on Banks -36030 -35544 -26581 -21983 5057 1018 59651
Claims 8680 9530 10924 11572 20985 17412 77738
Banks deposits in foreign currencies 44710 45074 37505 33555 15928 16394 18087
Other items (net) 22188 20502 -19266 -36496 -71723 -60325 -129231
Assets 57585 54355 56455 49071 48579 41743 46702
Liabilities ;of which 35397 33853 75721 85567 120302 102068 175933
Equities 1790 2325 2325 2513 2513 2513 2544
Provisions 301 307 373 302 299 50 49
Source : Central Bank of Egypt
( 2/1/2) Banking Survey : Domestic Liquidity and Counterpart Assets
( LE mn )
2004 2005 2006 2007
1- Domestic Liquidity 420091 434911 479063 493884 534663 560356 610452
a- Money Supply 74121 77606 86023 89685 103322 109274 123592

Currency in circulation outside the banking system 53038 55933 60679 63029 70258 74239 83332
Demand deposits in local currency 21083 21673 25344 26656 33064 35035 40260
- 105 -
b- Quasi-Money 345970 357305 393040 404199 431341 451082 486860
Time & saving deposits in local currency 226490 233610 269615 283020 303352 314188 340622
Demand and time & saving deposits in foreign currencies 119480 123695 123425 121179 127989 136894 146238
2- Counterpart Assets
Net foreign assets 36617 45241 73637 80913 131591 133385 199039
Domestic credit 419378 422040 453753 466771 490344 509532 522526
Other items (net) -35904 -32370 -48327 -53800 -87272 -82561 -111113

(2/1/3 ) Banking Survey : Deposits in Local Currency
( LE mn )
2004 2005 2006 2007
Total Deposits in local Currency 247573 255283 294959 309676 336416 349223 380882
1- Demand Deposits 21083 21673 25344 26656 33064 35035 40260
Public business sector * 2268 2857 2338 3027 3123 4934 4533
Private business sector 9228 9235 11148 12228 15651 15863 19148
- 106 -
Household sector 10076 10306 12364 11985 14768 14831 17002
Minus: Purchased cheques & drafts 489 725 506 584 478 593 423
2- Time and Saving Deposits 226490 233610 269615 283020 303352 314188 340622

* Including all public sector companies subject or not to Law No 203 for 1991.
( 2/1/4 ) Banking Survey : Deposits in Foreign Currencies
( LE mn )
2004 2005 2006 2007
Total Deposits in Foreign Currencies 119480 123695 123425 121179 127989 136894 146238
1- Demand Deposits 15318 16280 18648 18140 21047 18533 22689
- 107 -
Minus: Purchased cheques & drafts 197 186 198 166 162 211 135
2- Time and Saving Deposits 104162 107415 104777 103039 106942 118361 123549

( 2/1/5 ) Banking Survey : Foreign Assets and Liabilities
( LE mn )
2004 2005 2006 2007
Net Foreign Assets 36617 45241 73637 80913 131591 133385 199039
Foreign Assets 137557 145297 167470 174328 215925 218982 283279
- 108 -
Central Bank of Egypt 85088 88313 101872 108737 126997 129477 147426
Banks 52469 56984 65598 65591 88928 89505 135853
Foreign Liabilities 100940 100056 93833 93415 84334 85597 84240
Central Bank of Egypt 78441 78455 74372 71443 66137 68176 64809
Banks 22499 21601 19461 21972 18197 17421 19431

( 2/1/6 ) Banking Survey : Domestic Credit and Other Items (Net)
( LE mn )
2004 2005 2006 2007
Domestic Credit 419378 422040 453753 466771 490344 509532 522526
Net claims on the Government (A + B - C) 125747 126343 152623 159889 170914 184131 181583
A - Securities 219552 258178 306538 311375 287036 295974 273111
B - Credit facilities 49379 33075 37699 41364 34144 28044 48148
C - Government deposits 143184 164910 191614 192850 150266 139887 139676
- 109 -
Claims on public business sector * 36081 35588 37908 37420 34679 32888 23642
Claims on private business sector 220776 223096 223745 228195 234924 239338 259277
Claims on household sector 36774 37013 39477 41267 49827 53175 58024
Other Items (Net) -35904 -32370 -48327 -53800 -87272 -82561 -111113
Capital accounts; of which : -85480 -83821 -93803 -94179 -105611 -102139 -102094
Capital and reserves -32838 -33835 34239 -37699 -40306 -43043 -43574
Provisions -44305 -44891 -49336 -49843 -54169 -55000 -58798
Net unclassified assets and liabilities 49576 51451 45476 40379 18339 19578 -9019

(2/1/7) Total Saving Vessels
( LE mn )
2004 2005 2006 2007
Total Saving Vessels 428696 445887 482643 498190 532597 560229 603828
Savings at the Banking System 345970 357305 393040 404199 431341 451082 486860
Time & saving deposits in local currency 226490 233610 269615 283020 303352 314188 340622
-110 -
Demand and time & saving deposits in foreign currencies 119480 123695 123425 121179 127989 136894 146238
Net Sales of Investment Certificates 57748 60178 58319 58485 61488 63697 67219
Post Office Saving Deposits 24978 28404 31284 35506 39768 45450 49749

Public Business Sector*
( LE mn )
2004 2005 2006 2007
Total 35940 35430 37742 37242 34419 32636 23393
In Local Currency 27508 27690 30516 30165 27987 26269 17786
Agriculture 51 44 22 16 7 59 696
Manufacturing 16920 17263 18216 18318 14265 16215 8003
-111 -
Trade 5424 5272 6363 5936 4632 4318 3916
Services 5113 5111 5915 5895 9083 5677 5171
In Foreign Currencies 8432 7740 7226 7077 6432 6367 5607
Agriculture 0 0 0 0 0 0 199
Manufacturing 6073 5603 5343 5260 4220 3752 1928
Trade 538 532 534 511 549 1555 345
Services 1821 1605 1349 1306 1663 1060 3135
Private Business Sector (Contd.)
( LE mn )
2004 2005 2006 2007
Total 204639 205816 202626 205693 207094 214665 232746
Agriculture 4583 4972 5681 5756 4541 4794 8335
Manufacturing 56239 58434 59485 59099 56355 55827 56019
-112 -
Trade 43550 42267 40520 39712 38764 39110 39246
Services 48344 48474 46870 47624 47628 50754 56058
Agriculture 524 550 518 619 738 829 2684
Manufacturing 19764 19850 18569 20388 23371 26072 29159
Trade 12427 12020 11830 11369 11526 12337 12957
Services 19208 19249 19153 21126 24171 24942 28288

- 113 -
Structure of The Egyptian Banking System

As at End of March 2007*
Central Bank of Egypt
Public Sector Banks 3
Branches 821
Commercial Banks Private & Joint Venture Banks 28
Branches 913
Off-Shore Banks 7
Branches 52
Specialized Banks
The Egyptian Industrial Development
Industrial 1
Bank
Branches 13
Real Estate The Arab Egyptian Real Estate Bank 1
Branches 28
Principal Bank for Development &

Agricultural 1
Agricultural Credit
Branches 1208
Of which Agricultural Banks in:
Governorates 2
Village Banks 1037
Total 41** 3035
* Egyptian banks abroad are excluded, while two banks are established under private laws and are not
registered with CBE: the Arab International Bank, and Nasser Social Bank.
** Compared with 60 banks at end of December 2005. This decline is ascribed to banks merger and
acquisition operations in accordance with the reform plan implemented by the CBE.
- 114 -
Mutual Funds Licensed and Operating
Up to 31/3/2007
Price of Document
Inception Fund Capital (LE) Total Distributions
Fund Managers Fund Name Type of Fund
Date LE mn at 31/3/2007 (LE)
at Issue at 31/3/2007
Open-end Funds
1. Banque Du Caire Growth Nov-95 200 100 952.41 0.00
2. Credit Agricole Egypt II* Income / Growth Apr-97 300 100 164.28 37.50
3. Egyptian Gulf Bank Income / Growth May-97 100 100 360.37 112.00
Hermes F. 4. Credit Agricole Egypt I* Growth Oct-94 300 100 320.35 140.25
Management 5. Bank of Alexandria I Growth Nov-94 200 100 427.89 161.00
6. Faisal Islamic Bank Income Dec-04 50 100 151.16 25.00
7. Egyptian Saudi Finance Bank Income Jun-06 50 100 113.46 10.42
8.El Watany Bank of Egypt Income / Growth Aug.06 135 100 109.36 0.00
Cairo F.
Export Development Bank of Egypt I Income Oct-96 100 100 294.32 33.00
Management
1.Arab Misr Insurance Group Growth Aug-95 100 500 781.75 212.00
Prime Investment 2. Societe Arabe Int'l de Banque I** Growth Jun-96 100 100 459.25 68.00
F. Management 3. Societe Arabe Int'l de Banque II Income / Growth Oct-97 200 100 282.90 80.00
4. Societe Arabe Int'l de Banque III Income Feb-99 50 100 100.00 70.65
5.Sanabel Fund Income Feb-07 100 100 100.93 0.00
Concord F. 1. Banque Misr I Income Feb-95 500 100 104.96 87.30
2. Banque Misr II Growth Sep-95 300 66.67 81.27 39.65
Management
3. Shild Fund*** Growth Feb-98 280 50 106.71 31.50
+ Income / Growth Dec-97 138.97 100 481.29 40.00
1. Banque Misr III
2. Misr Iran Development Bank Income / Growth Aug-98 100 100 469.62 70.00
HC Securities 3. Misr Iran Development Bank I Income Jul-05 500 1000 1023.80 121.90
4. National Bank of Egypt III Income / Growth Aug-05 200 100 113.23 8.50
5. Suez Canal Bank ++ Income / Growth Dec-96 100 500 343.06 20.00
6. Banque Misr IV Income Oct-06 200 100 107.65 0.00
Egyptian Fund 1.Credit Agricole Egypt III * Income Jun-99 150 1000 1023.36 782.05
Management Group 2. Bank of Alexandria II Income Apr-06 200 10 10.82 0.00
3. National Societe Generale Bank Income Oct-06 100 100 104.79 0.00
1. National Bank of Egypt I Growth Sep-94 200 500 1850.00 0.00
El-Ahly F.
Management 2. National Bank of Egypt II Income Oct-95 300 100 85.40 109.00
3. National Bank of Egypt IV Income Apr-06 145 100 107.84 0.00
1. Commercial International Bank I Growth Apr-05 1000 100 119.12 0.00
CI Asset
2. Commercial International Bank II Growth Apr-06 600 100 111.79 0.00
Management
3. Al Amman Fund Growth Oct-06 100 100 102.66 0.00
ABN-Amro-Delta
Export Development Bank II Growth Nov.06 100 100 103.63 0.00
F. Management
Close-end Funds
Egyptian
Investment & Orient Trust Growth Feb-97 50 1000 1264.50 100.00
Finance Co.
Prime Investment
Arab Land Direct Income Feb-00 70 1000 886.49 113.75
F. Management
Al-Ahly Dev.&
Misr Direct Investment Fund Growth Jul-99 35 1000 1061.20 0.00
Investment
Source : Monthly Bulletin of Cairo & Alexandria Stock Exchanges.
* The Egyptian American Bank I, II and III Fund has changed to Credit Agricole Egypt I , II and III Fund Starting from 03/09/2006
** The fund's certificate has been split by a ratio of 1:5 and the par value has also changed from LE 500 to LE 100 effective 29/3/2007.
*** The Misr International Bank fund has changed to Shild fund starting from 2/4/2006 & the certificate has been split by a ratio of 1:2.The par .
value has also changed from LE 100 to LE 50
+ The Misr Exterior Bank fund has changed to Banque Misr III fund starting from 16/9/2004 after the merger of Misr Exterior
Bank with Banque Misr.The par value has also changed from LE 1000 to LE 100 after the amendment of Article (5) of the fund's prospectus
effective 27/08/2006.
++ The Fund Manager has changed to HC Securities instead of Egyptian Anglo Fund Management starting from 20/11/2005.
(2/2/1) Note Issued including Cash in CBE Vault by Denomination
( LE mn )
2004 2005 2006 2007
Currency by Denomination 56993 59703 65152 67527 74958 79017 89085
PT 25 129 118 123 120 140 136 150
PT 50 218 203 233 220 256 241 261
- 115 -
LE 1 544 515 544 517 585 545 607
LE 5 1223 1226 1331 1279 1219 1121 1170
LE 10 5604 5490 5227 5074 4524 4274 3807
LE 20 11268 11010 10648 10329 9444 9226 9287
LE 50 21877 22686 23558 24517 27231 27959 29156
LE 100 16130 18455 23488 25471 31559 35515 44647

(2/2/2) Currency in Circulation Outside CBE by Denomination
( LE mn )
2004 2005 2006 2007
Total 56434 59415 64704 67236 74459 78604 88196
*
Subsidiary denominations (banknotes & Coins) 217 219 224 226 232 236 256
PT 25 127 117 122 118 139 135 147
PT 50 213 201 227 217 252 239 252
- 116 -
LE 1 533 510 534 512 576 540 588
LE 5 1194 1201 1307 1251 1176 1095 1075
LE 10 5548 5424 5169 4999 4465 4215 3640
LE 20 11099 10926 10545 10246 9278 9128 8984
LE 50 21549 22490 23282 24348 27035 27737 28897
LE 100 15954 18327 23294 25319 31306 35279 44357
* Issued by the Ministry of Finance

( 2/2/3) Central Bank of Egypt : Clearing House Activities
July/March
During 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2005/2006 2006/2007
Cairo Branch
Number of cheques (thousands) 6737 9250 8856 8618
Value of cheques (LEmn) 232323 215703 215091 231943
Alexandria Branch
- 117 -
Port - Said Branch

*
All Branches
Number of cheques (thousands) 7918 10025 9591 9321 9508 6825 7670
Value of cheques (LEmn) 270543 244581 248224 262423 288715 205561 253253

* As of 1/1/2006, the manual Clearing Houses in Alexandria and Port-Said were cancelled, and all their activities were transferred
to Cairo Automated Clearing House.
(2/3/1) Banks : Aggregate Financial Position
( LE mn )
2004 2005 2006 2007
A : Assets
Cash 5189 5412 6226 6594 6195 6813 7078
Securities & investments in TBs ; of which: 121231 137431 172026 170659 196377 193965 180945
CBE notes - - - - 31736 21563 31823
Balances with banks in Egypt 128536 116290 118792 124986 122218 121695 161270
Balances with banks abroad 39991 43290 51973 51204 72739 72554 118042
Loans and discounts 293333 296199 298591 308195 315156 324041 342528
- 118 -
Other assets 49628 34814 59381 41990 69287 42494 69742
Assets =Liabilities 637908 633436 706989 703628 781972 761562 879605
B : Liabilities
Capital 19805 20346 21191 22949 24690 27112 29081
Reserves 11243 11454 12410 12419 13104 13418 11950
Provisions 44003 44584 48963 49541 53870 54950 58749
Long term loans & bonds 15416 15012 15826 14254 17791 17526 19873
Obligations to banks in Egypt 30449 29933 24643 22671 27380 21488 75245
Obligations to banks abroad 10895 10332 9310 12262 8353 8770 9075
Total deposits 446543 461697 505136 519649 552255 568841 594102
Other liabilities 59554 40078 69510 49883 84529 49457 81530
(2/3/2) Banks : Deposits by Maturity
( LE mn )
2004 2005 2006 2007
Total Deposits 446543 461697 505136 519649 552255 568841 594102
Demand deposits 43320 46742 50895 51557 63335 62431 70090

Time & saving deposits and saving accounts 378030 389482 431113 445132 467157 479805 497102
Blocked or retained deposits 25193 25473 23128 22960 21763 26605 26910
First : Local Currency Deposits 301898 310870 353446 369067 393366 401143 416995
- 119 -
Demand deposits 25518 27168 30546 31606 39658 41793 45917
Second : Foreign Currency Deposits 144645 150827 151690 150582 158889 167698 177107
Demand deposits 17802 19574 20349 19951 23677 20638 24173


(2/3/3) Banks : Deposits by Sector
( LE mn )
2004 2005 2006 2007
Total Deposits 446543 461697 505136 519649 552255 568841 594103
Local Currency Deposits 301898 310870 353446 369067 393366 401143 416996
Government sector 53067 54120 57628 57649 54815 49422 32545

- 120 -
Foreign sector ** 769 742 353 1158 1657 1905 3144
Foreign Currency Deposits 144645 150827 151690 150582 158889 167698 177107

Foreign sector** 694 759 772 1985 2185 1303 1266

* Including all public sector companies subject or not to Law No 203 for 1991 .
** Including counterpart deposits of US aid .
(2/3/4) Banks : Deposits by Economic Activity
( LE mn )
2004 2005 2006 2007
Total Deposits 446543 461697 505136 519649 552255 568841 594103
Local Currency Deposits 301898 310870 353446 369067 393366 401143 416996
Agriculture 2591 2480 2365 2548 2123 2215 4003

Manufacturing 17248 17325 19350 19239 20564 19903 20876
Trade 11043 10520 11049 11740 12765 12793 15601
- 121 -
Services 26430 28487 30951 31915 36489 38245 34156
Unclassified sectors 244586 252058 289731 303625 321425 327987 342360
Foreign Currency Deposits 144645 150827 151690 150582 158889 167698 177107
Agriculture 499 467 395 831 820 855 3257

Manufacturing 13500 14718 16063 15274 17092 18159 18206
Trade 6686 7258 6487 6583 7342 8250 6987
Services 13802 15306 18247 17499 20377 21602 23249

(2/3/5) Banks : Portfolio Investment by Sector +
( LE mn )
2004 2005 2006 2007
Total 121231 137431 172026 170659 164641 172402 149122

- 122 -
Household sector - - - - - - -
Foreign sector - - - - - - -

Public business sector * - - - - - - -
Household sector - - - - - - -
Foreign sector 8780 10042 9668 10032 11453 11950 12561

+ Excluding CBE notes.
(2/3/6) Banks : Lending and Discount Balances by Sector
( LE mn )
2004 2005 2006 2007
Total 293333 296199 298591 308195 315156 324041 342528

- 123 -
Foreign sector 381 389 455 492 716 723 815

Foreign sector 1527 1333 1302 1481 2026 1829 2219

(2/3/7) Banks : Credit by Sector
( LE mn )
2004 2005 2006 2007
Total 414564 433630 470617 478854 479797 496443 491648

- 124 -
Foreign sector 381 389 455 492 716 723 815

Foreign sector 10307 11375 10970 11513 13479 13779 14780

*Including all public sector companies subject or not to Law No 203 for 1991 .
(2/3/8) Banks : Lending and Discount Balances by Economic Activity
( LE mn )
2004 2005 2006 2007
Total 293333 296199 298591 308195 315156 324041 342528
Agriculture 4705 5015 5766 5822 4612 4902 9244

Manufacturing 75569 77722 81469 81844 75555 77734 65609
Trade 48974 48479 46883 45648 43396 43564 43163
- 125 -
Services 60285 60505 59279 59870 62091 61679 70743
Agriculture 524 550 518 619 739 829 2883

Manufacturing 27514 28569 28203 34957 36661 38517 33178
Trade 12965 12552 12378 11893 12089 13930 13316
Services 23951 23941 22718 24188 26979 26983 43175

- 126 -
(2/4) Discount and Interest Rates on Deposits and Loans

in Egyptian Pound
(% Annually)
Average Interest Rate in Interest Rate on Investment

Banks Certificates
Interest Rate on
Discount
End of Post Office
rate
on three on one year Saving Deposits*
Simple Compound
month or less-
Interest Interest
deposits loans
Jan-05 10.00 7.63 13.36 10.50 10.00 10.50

Feb ,, 7.62 13.44 ,, ,, ,,
Mar ,, 7.60 13.41 ,, ,, ,,
Apr ,, 7.60 13.39 ,, ,, ,,
May ,, 7.60 13.35 ,, ,, ,,
Jun ,, 7.61 13.35 ,, ,, ,,
Jul ,, 7.46 13.31 ,, ,, ,,
Aug ,, 7.42 13.28 ,, ,, ,,
Sep ,, 6.60 12.80 ,, ,, ,,
Oct ,, 6.60 12.60 ,, ,, ,,
Nov ,, 6.50 12.60 ,, ,, ,,
Dec ,, 6.50 12.70 ,, ,, ,,
Jan-06 9.00 6.40 12.60 ,, ,, ,,

Feb ,, 6.10 12.60 ,, ,, ,,
Mar ,, 6.20 12.60 9.50 9.00 9.50
Apr ,, 6.20 12.60 ,, ,, ,,
May ,, 5.90 12.60 ,, ,, ,,
Jun ,, 5.90 12.50 ,, ,, ,,
Jul ,, 5.90 12.60 ,, ,, ,,
Aug ,, 5.90 12.70 ,, ,, ,,
Sep ,, 5.90 12.60 ,, ,, ,,
Oct ,, 5.90 12.60 ,, ,, ,,
Nov ,, 6.00 12.60 ,, ,, ,,
Dec ,, 5.90 12.60 ,, ,, ,,
Jan-07 ,, 6.10 12.60 ,, ,, ,,

Feb ,, 6.20 12.70 10.00 9.50 ,,
Mar ,, 6.20 12.70 ,, ,, ,,
Source : Central Bank of Egypt and Egypt Post.

* An additional interest of 0.25% is computed on deposits remaining for one year .
- 127 -
(2/5) Domestic Interest Rates on 3-Month Deposits

in Major Currencies
( % Annually )
End of U.S. Dollar Sterling Pound Euro
Min. Max. Min. Max. Min. Max.
Jan-05 2.38 2.56 3.75 4.50 1.38 1.63

Feb 2.56 2.75 3.75 4.50 1.38 1.63
Mar 2.75 2.94 3.88 4.63 1.38 1.63
Apr 2.88 3.06 3.81 4.56 1.38 1.63
May 3.00 3.19 3.75 4.50 1.38 1.63
Jun 3.19 3.38 3.69 4.44 1.38 1.63
Jul 3.38 3.56 3.50 4.25 1.38 1.63
Aug 3.50 3.69 3.44 4.19 1.38 1.63
Sep 3.69 3.88 3.50 4.25 1.38 1.63
Oct 3.88 4.06 3.50 4.25 1.44 1.69
Nov 4.00 4.19 3.50 4.25 1.69 1.94
Dec 4.13 4.31 3.50 4.25 1.75 2.00
Jan-06 4.25 4.44 3.44 4.19 1.75 2.00

Feb 4.38 4.56 3.44 4.19 1.88 2.13
Mar 4.44 4.63 3.44 4.19 2.00 2.25
Apr 4.63 4.81 3.56 4.31 2.06 2.31
May 4.69 4.88 3.56 4.31 2.13 2.38
Jun 5.00 5.19 3.63 4.38 2.31 2.56
Jul 5.00 5.19 3.63 4.38 2.38 2.63
Aug 4.88 5.06 3.88 4.63 2.5 2.75
Sep 4.88 5.06 3.94 4.69 2.63 2.88
Oct 4.88 5.06 4.00 4.75 2.75 3.00
Nov 4.88 5.06 4.13 4.88 2.88 3.13
Dec 4.88 5.06 4.19 4.94 2.94 3.19
Jan-07 4.88 5.06 4.50 5.25 3.00 3.25

Feb 4.88 5.06 4.44 5.19 3.06 3.31
Mar 4.88 5.06 4.44 5.19 3.19 3.44
Source: National Bank of Egypt.
(2/6) The Return Rate on Treasury Bills ( Weekly Weighted Average)
(%)
91 days 182 days 364 days
January 2007
The:
First week (4/1) 9.756 .. 10.173
Second (11/1) 9.705 10.011 10.207
Third (18/1) 9.671 10.078 10.192
Fourth (25/1) 9.648 10.020 10.160
(31/1) 9.442 9.667 9.998
The month average 9.644 9.944 10.146
- 128 -
February 2007
The:
First week (8/2) 9.158 9.239 9.701
Second (15/2) 8.642 8.685 9.057
Third (22/2) 8.471 8.607 8.805
Fourth (28/2) 8.372 8.454 8.750
March 2007
The:
First week (8/3) .. 8.401 8.767
Second (15/3) 8.296 8.304 8.854
Third (22/3) 8.259 8.473 8.859
Fourth (29/3) 8.285 8.663 8.894
Source: Central Bank of Egypt.
(3/1) Companies Listed on the Stock Exchange
2004 2005 2006 2007

First :Companies Listed on the Official Schedules
- Number of companies (in unit) 112 129 129 132 137 141 142
- Number of shares (mn) 3167 3661 4061 4236 7304 7881 9914
- Nominal value of Capital (LE mn) 41544 43597 48105 49274 54303 58432 70123
- Market value of Capital (LE mn) 88881 95103 215708 250136 365485 298478 453511
Second :Companies Listed on the Unofficial Schedules
- 129 -
Third :Companies Listed on the Temporary Schedules *
Fourth : All Companies
Source : Monthly Bulletin of Cairo & Alexandria Stock Exchanges
* Companies which have not adjusted their statuses according to the new listing rules.
(3/2) Trading in Shares on the Stock Exchange
July/ March
During 2005/2006 2006/2007
Number of Market Number of Market
Amount Amount
Transactions Value Transactions Value
(Unit) (Thousands) (mn) (Unit) (Thousands) (mn)
- 130 -
In Egyptian Pound 4377631 5008609 175320 5402171 7247333 180428
Floor Transactions 4202577 4139415 168221 5227896 6401182 170616
Over the Counter Trading 175054 869194 7099 174275 846151 9812
In US Dollar 129399 328732 2258 224820 631855 1558
Source: Capital Market Authority

(3/3) Trading in Bonds on the Stock Exchange
July/ March
During 2005/2006 2006/2007
Number of Number of
Amount Market Value Amount Market Value
Transactions Transactions
(Unit) (Thousands) (Unit) (Thousands)
- 131 -
In Egyptian Pound 491 9188099 9073283 521 8564881 7070165
Over the Counter Trading - - - - - -
In US Dollar 38 53969 68670 10 209527 23492
Source:Capital Market Authority.

(3/4) Global Depository Receipts (GDRs)
Corporate Stocks Issued

GDRs Listed on Global Exchanges
on Egyptian Exchange
Sub- Volume on Price ($) at End of Price (LE) at End of

Conversion
Order and Date of Offering Depository Bank Custodian Offering
Ratio
Bank Date (000s) Jun-06 Mar-07 Jun-06 Mar-07
First Jul-96 Bank of New York CIB 1 9999 9.90 9.75 58.99 55.37
- 132 -
Second Jul-96 Bank of New York CIB 1 7310 10.50 11.50 63.14 62.51
NBE
Third Oct-97 Bank of New York CIB 3 6297 1.45 2.50 28.66 47.99
Fourth Aug-98 Bank of New York HSBC 0.5 4324 8.60 13.75 25.31 37.87
Fifth Jun-99 Deutsche Bank Citibank 0.33 573 39.00 9.70 39.09 50.32
Sixth* Jul-99 Bank of New York CIB 0.33 35000 0.44 0.44 - -
Seventh Jul-00 Bank of New York CIB 1 11713 40.80 68.00 238.67 395.07
Eighth Aug-02 Bank of New York CIB 0.5 50 62.60 101.50 175.38 285.99
Ninth Nov-04 Bank of New York CIB 1 8796 - 6.89 104.32 104.32
tenth Dec-05 Bank of New York CIB 0.2 8522 10.85 14.00 12.59 16.21
Source : Monthly Bulletin of Cairo & Alexandria Stock Exchanges.
* LAKAH group GDR price reresents last trading price on 3/3/2005.
Misr International Bank (MIBANK) GDRs have been de-listed, effective 23 January 2007.
- 133 -
(3/5) Outstanding Balance of Treasury Bills (Quarterly)
(LE mn)
End of 91 days 182 days 89 days 364 days Total

1999
March 6701.0 9352.9 - 11145.4 27199.3
June 6494.9 7918.1 - 11145.4 25558.4
Sept. 6338.6 7909.2 - 11145.4 25393.2
Dec. 5949.6 8274.7 - 11145.4 25369.7
2000
March 5558.2 8675.8 - 11145.4 25379.4
June 5585.3 8675.9 - 11131.9 25393.1
Sept. 5773.3 8637.9 - 14457.4 28868.6
Dec. 5714.9 8666.5 - 14457.4 28838.8
2001
March 6195.9 8271.3 - 14457.4 28924.6
June 5762.5 9113.9 - 14457.4 29333.8
Sept. 7687.7 8564.1 - 14457.4 30709.2
Dec. 11451.6 9502.5 - 14457.4 35411.5
2002
March 10864.0 10240.5 - 14457.4 35561.9
June 11183.2 14366.7 - 14457.4 40007.3
Sept. 14575.7 18411.5 - 14457.4 47444.6
Dec. 15897.1 22908.0 - 14457.4 53262.5
2003
March 15250.8 24259.7 - 14457.4 53967.9
June 16235.7 24625.2 - 14457.4 55318.3
Sept. 14975.2 26776.5 - 14457.4 56209.1
Dec. 6272.9 28066.3 13001.4 14457.4 61798.0
2004
March 15294.0 30476.8 4081.4 14457.4 64309.6
June 18462.7 38852.7 - 26458.2 83773.6
Sept. 11000.0 48196.3 - 48958.2 108154.5
Dec. 8600.0 45466.8 - 66558.2 120625.0
2005
March 0.0 34550.0 - 82358.2 116908.2
June 2750.0 23900.0 - 98257.4 124907.4
Sept. 8900.0 22350.0 - 71725.6 102975.6
Dec. 5500.0 22600.0 - 67815.6 95915.6
2006
March 6000.0 24100.0 - 69015.6 99115.6
June 7100.0 26500.0 - 69543.6 103143.6
Sept. 9900.0 27500.0 - 69957.4 107357.4
Dec. 8200.0 27000.0 - 71157.4 106357.4
2007
March 11000.0 26000.0 - 73657.4 110657.4
(3/6) The Outstanding Balance of Treasury Bills (Weekly)
(LE mn)
91 days 182 days 364 days Total
January 2007
The:
First week (4/1) 8700.0 26000.0 71157.4 105857.4
Second (11/1) 8700.0 26000.0 72657.4 107357.4
Third (18/1) 8700.0 26000.0 72157.4 106857.4
Fourth (25/1) 8700.0 26500.0 72657.4 107857.4
End of month 9200.0 26000.0 72657.4 107857.4
- 134 -
February 2007
The:
First week (8/2) 9200.0 26000.0 72657.4 107857.4
Second (15/2) 9200.0 26000.0 73657.4 108857.4
Third (22/2) 8700.0 25500.0 74657.4 108857.4
Fourth (28/2) 8700.0 25500.0 74157.4 108357.4
End of month 8700.0 25500.0 74157.4 108357.4
March 2007
The:
First week (7/3) 8700.0 26000.0 74157.4 108857.4
Second (15/3) 8500.0 25000.0 74157.4 107657.4
Third (22/3) 10000.0 25500.0 74157.4 109657.4
Fourth (29/3) 11000.0 26000.0 73657.4 110657.4
End of month 11000.0 26000.0 73657.4 110657.4
(3/7) Outstanding Balance of Treasury Bonds*
End of March 2007
Date of Value Interest Maturity Due Date
Issue (LEmn) Rate
Seventh Tranche 3/1/1999 2000 9.500% 10 years 01/03/2009

Eighth Tranche 4/16/1999 2000 10.000% 10 years 16/04/2009
Ninth Tranche 5/3/2000 3000 11.000% 7 years 03/05/2007
Bonds under the Primary Dealers System **
Eleventh Tranche 10/26/2004 5000 11.500% 7 years 10/26/2011
Twelveth Tranche 11/16/2004 5000 11.625% 10 years 11/16/2014
Thirteenth Tranche 0712/2004 3000 10.938% 4 years 12/7/2008
Fourteenth Tranche 1/18/2005 1000 11.400% 20 years 1/18/2025
Fifteenth Tranche 7/12/2005 2000 9.100% 5 years 7/12/2010
Sixteenth Tranche ( 1 ) 8/2/2005 4000 9.250% 4 years 8/2/2009
Seventeenth Tranche 8/16/2005 2000 9.350% 5 years 8/16/2010
- 135 -
Eighteenth Tranche ( 2 ) 9/20/2005 6000 9.100% 7 years 9/20/2012
Nineteenth Tranche 10/4/2005 2000 9.063% 3 years 04/10/2008
Twentieth Tranche 10/18/2005 2000 9.100% 5 years 10/18/2010
Twenty First Tranche (3) 11/15/2005 5000 9.300% 10 years 15/11/2015
Twenty Second Tranche 1/3/2006 2000 9.050% 4 years 1/3/2010
(4)
Twenty Third Tranche 1/24/2006 4000 8.850% 7 years 24/01/2013
Twenty Fourth Tranche 2/14/2006 2000 8.500% 2 years 2/14/2008
Twenty Fifth Tranche 2/28/2006 2000 8.600% 5 years 2/28/2011
Twenty sixth Tranche 5/2/2006 2000 8.950% 4 years 5/2/2010
Total 56000
Source: Central Bank of Egypt. * Issued by law No. 4 /1995.
** This system was applicable 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 Decree No. 723 for 2002, in accordance with Article (7) of law No. 92 for 2004.
1
( ) Increased by LE 2.0 billion , due to their re-opening on 8/11/2005 on the same conditions.
( 2 ) Increased by LE 2.0 billion , due to their re-opening on 13/12/2005 and by LE 2.0 billion due to their re-opening on 27/3/2007 on the same conditions.
(3 ) Increased by LE 2.0 billion , due to their re-opening on 13/3/2006 on the same conditions, and by LE 1.0 billion for the reopening on13/6/2006 on the same conditions.
( 4 ) Increased by LE 2.0 billion , due to their re-opening on17/4/2006 on the same conditions.
(4/1) Consolidated Fiscal Operations of General Government
(The Budget Sector , & the General Government)
( Expenditure )
( LE mn )
2006/2007
Estimates 9 Months (Actual)
The The
General General
Budget Budget
Government* Government*
Sector Sector
Total Expenditures 217276 237083 127846 143290

Compensation of employees 51432 52036 35912 36287
Salaries and wages 38154 38685 29754 30087
Social contributions 5898 5964 3967 4004
Other 7380 7387 2191 2196
Purchases of goods and services 15476 15554 9067 9101
Goods 6232 6244 4264 4271
Serivces 6046 6097 3948 3971
Other 3198 3213 855 859
Interest 50748 39912 31983 24545
- 136 -
Foreign interest 3465 3465 2636 2636
Domestic interest 47283 36447 29347 21909
To NIB & SIFs 17638 0 12818 0
To others 29645 36447 16529 21909
Subsidies, Grants & Social benefits 58445 87395 25304 47730
Subsidies 53777 53777 22108 22108
To G.A.S.C 8642 8642 7365 7365
To petroleum 40000 40000 11922 11922
To others 5135 5135 2821 2821
Grants 2315 2315 1638 1638
Social benefits 1498 30448 1339 23765
Contribution to social funds 0 28950 0 22426
Other 1498 1498 1339 1339
Other 855 855 219 219
Other expenditures 20936 21916 14748 14789
Defense 17200 17200 12909 12909
Other 3736 4716 1839 1880
Purchases of non financial assets 20239 20270 10832 10838
Fixed assets 17032 17063 9850 9856
Others 3207 3207 982 982
Source : The Ministry of Finance .
(4/2) Consolidated Fiscal Operations of General Government
( Revenues )
( LE mn )
2006/2007
The The
General General
Budget Budget
Sector Sector
Total Revenues 163909 190408 105307 122842

Tax Revenues 105646 105646 64285 64285
Tax on Income, Profits 53642 53642 27509 27509
From EGPC 26813 26813 7490 7490
From SCA 8825 8825 6720 6720
From CBE 135 135 0 0
From other units 7101 7101 7061 7061
- 137 -
Payable by individuals 10768 10768 6238 6238
Taxes on Property 1204 1204 1287 1287
Taxes on Goods and Services 36914 36914 25746 25746
Taxes on International Trade 9601 9601 7340 7340
Other Taxes 4285 4285 2403 2403
Grants 3482 3482 2169 2169
Current 1725 1725 1943 1943
Capital 1757 1757 226 226
Other Revenues 54781 81280 38853 56388
Property Income 42970 49728 31125 34836
From EGPC 18977 18977 3000 3000
From SCA 11766 11766 8760 8760
From CBE 1000 1000 0 0
From Economic Authorities 1182 1182 278 278
From Companies 2611 2766 1134 1237
Other (from TML) 4700 4700 15640 15640
Other 2734 9337 2313 5921
Sales of Goods and Services 8525 8525 3764 3764
Financing Investment 1419 1419 719 719
Other 1867 21608 3245 17069
(4/3) Summary of the Consolidated Fiscal Operations of General Government *
( LE mn )
2006/2007
The The
General General
Budget Budget
Sector Sector
Total Revenues 163909 190408 105307 122842

Total Expenditures 217276 237083 127846 143290
Cash Deficit 53367 46675 22539 20448
Net Acquisition of Financial Assets 8870 8674 6482 8628
Overall fiscal balance finance 62237 55349 29021 29076
Financing Sources 62238 55348 29021 29076
Domestic Financing 65360 60810 27270 27348
Banking Financing 36806 35539 -1472 -258
Central Bank -18355 -18355 16470 16870
- 138 -
Other Banks 55161 53894 -17942 -17128
Non Banking Financing 28554 25271 26989 25853
N.I.B 3554 3554 217 0
SIFs 8400 0 4122 0
Other 16600 16600 22650 22650
N.I.B Borrowing 0 5117 0 3203
Net Credit and Debt Liabilities 0 0 1753 1753
Blocked account 1500 1500 -1538 -1538
Revaluation of Foreign Liabilities 1500 1500 215 215
Foreign Borrowing -5138 -5138 -1356 -1356
Arrears 0 0 -471 -471
Other -984 -3324 -889 -912
Financing Effects for Eliminations 0 0 0 0
Exchange Rate Revaluation 0 0 -524 -524
Net Privatization Proceeds 3000 3000 106 106
Privatization Proceeds 10000 10000 9896 9896
Treasury Contribution to the Fund 7000 7000 9790 9790
The differences bet. nominal & real values of treasury bills 0 0 -751 -751
Discrepancy -1 1 5636 5636
Cash Deficit (Surplus ) as a percentage of G.D.P 7.6% 6.6% 3.1% 2.8%
Overall fiscal balance as a percentage of G.D.P 8.8% 7.9% 4.0% 4.0%
Revenues as a percentage of G.D.P 23.3% 27.1% 14.4% 16.8%
Expenditure as a percentage of G.D.P 30.9% 33.7% 17.5% 19.6%
* Including the Budget Sector, NIB and SIFs.
(4/4) Domestic Debt of Government & Public Economic Authorities
(LE mn)
June 2006 March 2007 Change +(-)

End of
Value % Value % 2006/2007
Government Domestic Debt 387719 100.0 468327 100.0 80608
- Bonds & Bills 349957 90.3 551834 117.8 201877
- Treasury bonds , of which : 231125 59.6 227889 48.7 (3236)
In local currency with public sector banks 4000 1.0 4000 0.9 -
Euro sovereign bonds (US$) offered abroad * 5109 1.3 3872 0.8 (1237)
- Government notes to compensate for the actuarial
2000 0.6 2000 0.4 -
deficit in social insurance funds
- Housing bonds 122 0.0 119 0.0 (3)
- 139 -
- Treasury bills 103144 26.6 110657 23.6 7513
- Foreign currency bonds with public sector
commercial banks 12014 3.1 11886 2.5 (128)
- The equivalent of the retained 5% of corporate profits
to purchase government bonds 1552 0.4 1558 0.4 6
- Bonds for the two Insurance Funds ( against the transfer of NIB debt to
the treasury ) 0 0.0 197725 42.2 197725
- Net Government Balances with the Banking System -104860 -27.1 -83507 -17.8 21353
- Government Borrowing from NIB 142622 36.8 0 0.0 (142622)
Economic Authorities Debt 47387 100.0 46255 100.0 (1132)

- Net Balance of Economic Authorities with the Banking System -2809 -5.9 -5326 -11.5 (2517)
- Borrowing of Economic Authorities from NIB 50196 105.9 51581 111.5 1385
Source: The Ministry of Finance, Central Bank of Egypt & National Investment Bank.
* Holdings of financial institutions resident in Egypt (The Banking System and the Insurance Sector).
(4/5) National Investment Bank
(Resources & Uses)

(LE mn)
End of June 2006 March 2007 Change +(-)
Value % Value % 2006/2007
Resources: 354962 100.0 158783 100.0 (196179)

. Social Insurance Fund for Gov. Employees 135735 38.2 25009 15.8 (110726)
. Social Insurance Fund for Pub. & Priv. Sectors Employees 105703 29.8 18704 11.8 (86999)
. Proceeds from the Investment Certificates 64038 18.0 67049 42.2 3011
. Accumulated Returns of the Investment Certificates (Category A) 7028 2.0 7380 4.6 352
- 140 -
. Proceeds from US Dollar Development Bonds 824 0.2 484 0.3 (340)
. Post Office Savings 39097 11.0 39097 24.6 0)
. Other * 2537 0.8 1060 0.7 (1477)
Uses: 354962 100.0 158783 100.0 (196179)

. Government 142622 40.2 0 0.0 (142622)
. Economic Authorities 50196 14.1 51581 32.5 1385)
. Other 158387 44.6 104886 66.1 (53501)
. NIB Balances held at the Banking System 3757 1.1 2316 1.4 (1441)
* Including deposits of private insurance funds, saving certificates, loans & deposits of various authorities.
- 141 -
(5/1) Balance of Payments

(LE mn)
July / March
2005/2006 2006/2007* Change
Value % Value % (-)
Balance of Current Account 10855.9 18756.4 7900.5
Balance of Current Account (Excluding Transfers) (12872.5) (9921.0) 2951.5
Receipts 151540.7 100.0 177290.5 100.0 25749.8
Export proceeds** 77405.4 51.1 90963.3 51.3 13557.9
Transportation, of which 20933.3 13.8 26748.7 15.1 5815.4
Suez Canal dues (15092.7) (10.0) (17461.2) (9.8) (2368.5)
Travel 32030.7 21.1 35404.0 20.0 3373.3
Investment income 8074.6 5.3 12631.9 7.1 4557.3
Government receipts 1005.0 0.7 1409.9 0.8 404.9
Other receipts 12091.7 8.0 10132.7 5.7 (1959.0)
Payments 164413.2 100.0 187211.5 100.0 22798.3
Import payments** 124953.5 76.0 150386.9 80.3 25433.4
Transportation 4777.9 2.9 5166.3 2.7 388.4
Travel 6798.9 4.1 7979.1 4.3 1180.2
Investment income, of which 6330.3 3.8 7622.1 4.1 1291.8
Interest paid (2671.5) (1.6) (2806.3) (1.5) (134.8)
Government expenditures 5322.8 3.3 5031.3 2.7 (291.5)
Other payments 16229.8 9.9 11025.8 5.9 (5204.0)
Transfers 23728.4 100.0 28677.4 100.0 4949.0
Private (net) 21217.2 89.5 24912.6 87.0 3695.4
Official (net) 2511.2 10.5 3764.8 13.0 1253.6

* Preliminary figures.
** Including the exports & imports of free zones.
-142 -
(5/1) Balance of Payments (Contd.)

(LE mn)
July / March
2005/2006 2006/2007*
Value Value
Capital & Financial Account 10162.0 -1358.3
Capital Account -215.8 -229.6
Financial Account 10377.8 -1128.7
Direct Investment Abroad -502.6 -2538.0
Direct Investment in Egypt (Net) 26649.2 51780.5
Portfolio Investments Abroad (Net) -4008.8 -2636.9
Portfolio Investments in Egypt ( Net), Of which : 16420.8 1304.2
Bonds 15819.3 -2799.3
Other Investments (Net) -28180.8 -49038.5
Net Borrowing 3714.2 3385.1
Medium-and Long-Term Loans -4618.7 -5461.0
Drawings 4122.2 1282.1
Repayments -8740.9 -6743.1
Medium-Term Suppliers Credit 111.6 -1293.4
Drawings 3479.3 109.4
Repayments -3367.7 -1402.8
Short -Term Suppliers Credit (Net) 8221.3 10139.5
Other Assets -28247.0 -54700.7
CBE 172.5 -1036.7
Banks -23830.7 -47679.0
Other -4588.8 -5985.0
Other Liabilities -3648.0 2277.1
CBE -5.7 62.3
Banks -3642.3 2214.8
Net Errors & Omissions -2220.1 428.7
Overall Balance 18797.8 17826.8
Change in Reserve Assets, Increase (-) -18797.8 -17826.8
Source: CBE.
- 143 -
(5/2) Balance of Payments

(US$mn)
July / March
2005/2006 2006/2007* Change
Value % Value % (-)
Balance of Current Account 1881.6 3264.6 1383.0
Balance of Current Account (Excluding Transfers) (2239.0) (1742.6) 496.4
Receipts 26348.3 100.0 30986.9 100.0 4638.6
Export proceeds** 13460.4 51.1 15898.5 51.3 2438.1
Transportation, of which 3639.3 13.8 4675.4 15.1 1036.1
Suez Canal dues (2624.0) (10.0) (3051.9) (9.8) (427.9)
Travel 5567.0 21.1 6186.4 20.0 619.4
Investment income 1404.2 5.3 2208.5 7.1 804.3
Government receipts 174.8 0.7 246.9 0.8 72.1
Other receipts 2102.6 8.0 1771.2 5.7 (331.4)
Payments 28587.3 100.0 32729.5 100.0 4142.2
Import payments** 21723.2 76.0 26288.0 80.3 4564.8
Transportation 830.8 2.9 903.3 2.7 72.5
Travel 1182.0 4.1 1394.6 4.3 212.6
Investment income, of which 1100.1 3.8 1331.0 4.1 230.9
Interest paid (464.5) (1.6) (490.6) (1.5) (26.1)
Government expenditures 928.9 3.3 885.9 2.7 (43.0)
Other payments 2822.3 9.9 1926.7 5.9 (895.6)
Transfers 4120.6 100.0 5007.2 100.0 886.6
Private (net) 3688.7 89.5 4355.4 87.0 666.7
Official (net) 431.9 10.5 651.8 13.0 219.9

** Including the exports & imports of free zones.
-144 -
(5/2) Balance of Payments (Contd.)
(US$mn)
July / March
2005/2006 2006/2007*
Value Value
Capital & Financial Account 1758.3 -247.4
Capital Account -37.5 -40.0
Financial Account 1795.8 -207.4
Direct Investment Abroad -87.4 -444.5
Direct Investment in Egypt (Net) 4631.5 9045.3
Portfolio Investments Abroad (Net) -698.2 -461.5
Portfolio Investments in Egypt (Net), Of which : 2847.7 228.5
Bonds 2742.4 -448.3
Other Investments (Net) -4897.8 -8575.2
Net Borrowing 645.3 582.3
Medium-and Long-Term Loans -803.6 -954.6
Drawings 716.2 224.3
Repayments -1519.8 -1178.9
Medium-Term Suppliers Credit 19.0 -225.9
Drawings 604.8 19.1
Repayments -585.8 -245.0
Short -Term Suppliers Credit (Net) 1429.9 1762.8
Other Assets -4909.1 -9557.2
CBE 30.2 -181.2
Banks -4143.8 -8332.5
Other -795.5 -1043.5
Other Liabilities -634.0 399.7
CBE -1.0 10.9
Banks -633.0 388.8
Net Errors & Omissions -374.6 95.4
Overall Balance 3265.3 3112.6
Change in Reserve Assets, Increase (-) -3265.3 -3112.6
Source: CBE.
(5/3) Exports by Degree of Processing *
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Total *** 13460.4 100.0 15898.5 100.0 2438.1
Fuels , Mineral Oils & Products 7593.7 56.4 7465.2 47.0 (128.5)
Crude oil 2330.0 17.3 2291.3 14.4 (38.7)
Petroleum products **** 5109.6 38.0 5035.1 31.7 (74.5)
Coal & types thereof 12.2 0.1 38.6 0.3 26.4
- 145 -
Other 141.9 1.0 100.2 0.6 (41.7)
Raw Materials 498.6 3.7 476.2 3.0 (22.4)
Cotton 109.7 0.8 72.8 0.5 (36.9)
Potatoes 1.2 0.0 8.3 0.1 7.1
Edible fruits & nuts 17.9 0.2 27.3 0.2 9.4
Oil seeds & oleaginous fruits, medicinal plants & plants for manufacturing 15.0 0.1 79.0 0.5 64.0
Iron, ore 42.4 0.3 47.9 0.3 5.5
Citrus fruits 22.7 0.2 23.0 0.1 0
Raw hides & tanned leather 57.9 0.4 22.8 0.1 (35.1)
Flax, raw 2.5 0.0 2.6 0.0 0.1
Edible vegetables roots & tubers 94.1 0.7 82.3 0.5 (11.8)
Other 135.2 1.0 110.2 0.7 (25.0)
Semi-finished Goods 799.0 6.0 1364.7 8.6 565.7
Carbon 13.8 0.1 16.2 0.1 2.4
Essential oils & resins 3.0 0.0 6.5 0.0 3.5
(5/3) Exports by Degree of Processing * (Contd.)
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Cotton yarn 84.7 0.6 90.1 0.6 5.4
Aluminium, unalloyed 122.9 0.9 238.1 1.5 115.2
Animal & vegetable fats, greases & oils & products 8.3 0.1 62.9 0.4 54.6
Molasses 15.0 0.1 7.2 0.1 (7.8)
Organic & inorganic chemicals 185.0 1.4 196.1 1.2 11.1
Cast iron & semi-finished products & rolled iron 237.5 1.8 580.5 3.7 343.0
Leather, tanned 74.5 0.6 42.8 0.3 (31.7)
Tanning or dyeing extracts 10.5 0.1 22.4 0.1 12.0
- 146 -
Plastic & articles thereof 33.0 0.2 84.0 0.5 51.0
Other 10.8 0.1 17.9 0.1 7.1
Finished Goods 3839.3 28.5 5349.8 33.6 1510.5
Milk & condensed cream 4.7 0.0 19.6 0.1 14.9
Dried onion 2.8 0.0 4.1 0.0 1.3
Rice 104.8 0.8 103.9 0.6 (0.9)
Vegetable & fruit preparations 11.1 0.1 19.0 0.1 7.9
Miscellaneous edible preparations 175.2 1.3 306.3 1.9 131.1
Manufactured tobacco and tobacco substitutes 23.5 0.2 37.0 0.2 13.5
Sugar and its products 22.3 0.2 69.9 0.4 47.6
Pharmaceuticals 90.6 0.7 171.2 1.1 80.6
Fertilizers 115.5 0.9 268.5 1.7 153.0
Cement 210.6 1.6 184.3 1.2 (26.3)
(5/3) Exports by Degree of Processing * (Contd.)
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Extracts of essential oils & resins 47.1 0.2 83.5 0.5 36.4
Leather products 1.5 0.0 15.7 0.1 14.2
Rubber & articles 7.1 0.1 11.2 0.1 4.1
Paper, cardboard paper & articles thereof 85.1 0.6 95.4 0.6 10
Ceramic products 65.4 0.5 76.8 0.5 11.4
Cars, bicycles & tractors 98.0 0.7 152.0 0.9 54.0
Cotton textiles 162.5 1.2 183.0 1.1 20.5
Carpets & other floor coverings 93.7 0.7 95.8 0.6 2
Shoes & accessories 7.0 0.1 1.5 0.0 (5.5)
- 147 -
Ready-made clothes 246.7 1.8 318.1 2.0 71.4
Glass & glassware 205.2 1.5 136.2 0.9 (69.0)
Copper & articles 18.3 0.1 10.8 0.1 (7.5)
Aluminium articles 101.4 0.8 61.9 0.4 (39.5)
Articles of iron and steel 328.4 2.4 548.2 3.4 219.8
Wood & articles thereof and charcoal 5.7 0.0 41.9 0.3 36.2
Marble & granite 37.1 0.3 41.8 0.3 4.7
Articles of base metals 141.5 1.1 296.0 1.9 154.5
Optical appliances 22.1 0.2 44.2 0.3 22.1
Electric machines & appliances, recorders & T.V
240.5 1.8 431.5 2.7 191.0
sets and their accessories
Other 1163.9 8.6 1520.5 9.6 356.6
Miscellaneous Goods (Undistributed) 729.8 5.4 1242.6 7.8 512.8
* Commodities are classified according to the Harmonized System.
** Provisional.
*** Include exports of free zones.
**** Include natural gas, and bunker & jet fuel.
(5/4) Imports by Degree of Use *
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Total *** 21723.2 100.0 26288.0 100.0 4564.8
Fuels, Mineral Oils & Products 1710.5 7.9 1831.9 7.0 121.4
Petroleum products **** 1655.6 7.6 1719.2 6.6 63.6
Coal & types thereof 31.5 0.2 61.6 0.2 30.1
Other 23.4 0.1 51.1 0.2 27.7
Raw Materials 3796.5 17.5 4189.8 15.9 393.3
Crude oil 2092.3 9.6 1140.4 4.3 (951.9)
Wheat 691.2 3.2 921.5 3.5 230.3
- 148 -
Maize 286.6 1.3 373.6 1.4 87.0
Tobacco 141.2 0.7 192.4 0.7 51.2
Metal ores 86.7 0.4 283.5 1.1 196.8
Iron, ore 62.8 0.3 196.7 0.7 133.9
Seeds & oleaginous seeds 73.6 0.3 43.0 0.2 (30.6)
Cotton 73.6 0.4 100.0 0.4 26.4
Other 288.5 1.3 938.7 3.6 650.2
Intermediate Goods 6058.2 27.9 7092.5 27.0 1034.3
Sugar, raw 71.1 0.3 58.6 0.2 (12.5)
Animal and vegetable fats, greases & oils and products 382.2 1.8 541.0 2.1 158.8
Cement 52.1 0.2 6.5 0.0 (45.6)
Organic & inorganic chemicals 515.0 2.4 898.7 3.4 383.7
Fertilizers 104.8 0.5 57.7 0.2 (47.1)
Tanning & dyeing extracts 86.9 0.4 93.7 0.4 6.8
Essential oils & resinoids 35.9 0.2 39.3 0.2 3.4
Plastic & articles thereof 483.5 2.2 643.7 2.4 160.2
(5/4) Imports by Degree of Use* (Contd.)
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Wood & articles thereof 343.5 1.6 402.3 1.5 58.8
Paper, cardboard paper & articles thereof 349.6 1.6 370.3 1.4 20.7
Cotton textiles 93.3 0.4 110.3 0.4 17.0
Synthetic fibers 200.6 0.9 225.8 0.9 25.2
Ceramic products 87.3 0.4 118.5 0.5 31.2
Glass & articles 34.2 0.2 50.0 0.2 15.8
Iron & steel products 1094.7 5.0 1223.3 4.7 128.6
Copper & articles 79.6 0.4 83.8 0.3 4.2
- 149 -
Rubber & articles 162.2 0.7 160.4 0.6 (1.8)
Aluminium & articles 80.9 0.4 271.4 1.0 190.5
Articles of base metals 88.2 0.4 101.0 0.4 12.8
Other 1712.6 7.9 1636.2 6.2 (76.4)
Investment Goods 5439.6 25.0 6595.4 25.1 1155.8
Pumps, fans & parts thereof 162.9 0.7 114.3 0.4 (48.6)
Machines and apparatus for ginning and spinning & parts thereof 43.4 0.2 65.2 0.2 21.8
Computers 152.5 0.7 168.3 0.6 15.8
Motors, generators, transformers & parts thereof 114.2 0.5 201.1 0.8 86.9
Parts of railway and tramway locomotives or rolling stock equipment 29.9 0.1 21.3 0.1 (8.6)
Tractors 16.9 0.1 25.7 0.1 8.8
Vehicles for transport of passengers 28.4 0.1 10.5 0.0 (17.9)
Vehicles for transport of goods 17.4 0.1 23.1 0.1 5.7
Parts & accessories of motor vehicles 500.3 2.3 561.6 2.1 61.3
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Tools, implements, cuttery & spoons 57.8 0.3 94.3 0.4 36.5
Air conditioners 63.5 0.3 79.5 0.3 16.0
Cranes and bulldozers & parts thereof 77.3 0.4 108.2 0.4 30.9
Agricultural machinery 46.2 0.2 45.4 0.2 (0.8)
Printing machinery & parts 35.1 0.2 42.3 0.2 7.2
Electric appliances for telephones & telegraph 187.2 0.9 227.9 0.9 40.7
Optical appliances 161.0 0.7 209.9 0.8 48.9
- 150 -
Other 3745.6 17.2 4596.8 17.5 851.2
Consumer Goods 2539.7 11.7 3552.4 13.5 1012.7
A - Durable Goods 679.8 3.1 939.0 3.6 259.2
Household refrigerators & electric freezers 55.3 0.3 54.3 0.2 (1.0)
Televisions & parts thereof 33.1 0.1 29.3 0.1 (3.8)
Vehicles for transport of persons 265.2 1.2 377.0 1.4 111.8
Household electric-motor appliances 90.2 0.4 123.4 0.5 33.2
Other 236.0 1.1 355.0 1.4 119.0
B - Non-durable Goods 1859.9 8.6 2613.4 9.9 753.5
Meat and edible offals 165.5 0.8 361.3 1.4 195.8
Fish, crustaceans, molluscs and others 49.3 0.2 86.0 0.3 36.7
Dairy products, eggs, poultry and honey 68.5 0.3 109.4 0.4 40.9
Edible vegetables roots & tubers 56.4 0.3 85.1 0.3 28.7
Tea 56.6 0.3 58.6 0.2 2.0
(US$ mn)
July/March
2005/2006 2006/2007 ** Change
Value % Value % (-)
Miscellaneous edible preparations 191.3 0.9 160.5 0.6 (30.8)
Pharmaceuticals 450.2 2.1 587.7 2.2 137.5
Insecticides 9.2 0.0 21.6 0.1 12.4
- 151 -
Residues of foodstuff industries & animal fodder 99.7 0.4 96.7 0.4 (3.0)
Live animals 15.4 0.1 17.8 0.1 2.4
Ready-made clothes 135.4 0.6 223.4 0.9 88.0
Cotton textiles 41.7 0.2 79.2 0.3 37.5
Sugar, refined and products 14.4 0.1 38.0 0.1 23.6
Lentils 29.2 0.1 17.5 0.1 (11.7)
Soap, detergents & artificial wax 35.6 0.2 37.9 0.1 2.3
Other 441.5 2.0 632.7 2.4 191.2
Miscellaneous Goods (Undistributed) 2178.7 10.0 3026.0 11.5 847.3

* 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.
(5/5) Regional Distribution of Exports and Imports
(US$ mn)
July/March
Proceeds of Exports Payments for Imports* Trade Balance
2005/2006 2006/2007 ** 2005/2006 2006/2007 ** 2005/2006 2006/2007 **
Total *** 13460.4 15898.5 21723.2 26288.0 (8262.8) (10389.5)
European Union 5274.2 5506.0 8147.6 9721.8 (2873.4) (4215.8)
Other European countries 684.2 751.0 1584.7 2014.3 (900.5) (1263.3)
- 152 -
Russian Federation & C.I.S 44.6 100.1 598.9 517.8 (554.3) (417.7)
United States of America 4077.4 4707.4 3876.6 5776.3 200.8 (1068.9)
Arab countries 1529.6 2076.5 1986.2 2368.2 (456.6) (291.7)
Asian countries (Non Arab) 1395.1 2189.8 3223.8 4307.9 (1828.7) (2118.1)
African countries (Non Arab) 193.7 238.6 114.3 179.5 79.4 59.1
Australia 14.4 24.9 231.8 80.7 (217.4) (55.8)
Other countries & regions 247.2 304.2 1959.3 1321.5 (1712.1) (1017.3)
Source: Central Bank of Egypt
* Including in-kind grants and loans.
** Provisional.
*** Including exports & imports of free zones.
-153 -
(5/6) Average Foreign Exchange Rates

(In piasters per foreign currency unit)
End of
First : US$ Interbank Rates June 2006 March 2007
Minimum
575.76 569.64
Maximum
575.80 569.68
Weighted average
575.79 569.66
Second: Market Rates
Buy Sell Buy Sell
US Dollar
575.23 577.20 569.25 571.08
Euro
720.53 723.06 759.43 761.93
Pound Sterling
1041.97 1045.66 1118.23 1121.99
Swiss Franc
460.33 462.06 468.21 469.83
100 Japanese Yen
493.76 495.67 484.59 486.19
Saudi Riyal
153.37 153.91 151.77 152.30
Kuwaiti Dinar 1988.97 1996.48 1966.93 1973.92
UAE Dirham 156.61 157.16 155.02 155.53
Source : CBE daily exchange rates.

The interbank rates started on 23/12/2004.
( 5 / 7) External Debt
(US$ mn)
June 2006 March 2007 * Change
End of
Value % Value % Value (-) %
**
Total External Debt 29592.6 100.0 28743.5 100.0 (849.1) (2.9 )
1- Medium and Long term debt : 27959.6 94.5 27232.0 94.7 (727.6) (140.7 )
Rescheduled bilateral debt + 15229.0 51.5 14896.5 51.8 (332.5) (2.2 )
ODA 7610.6 25.7 7475.7 26.0 (134.9) (1.8 )
Non-ODA 7618.4 25.8 7420.8 25.8 (197.6) (2.6 )
Other bilateral debt 4295.5 14.5 4399.8 15.3 104.3 2.4
- 154 -
Paris club countries 3590.4 12.1 3685.3 12.8 94.9 2.6
Other countries 705.1 2.4 714.5 2.5 9.4 1.3
International & regional organizations 5205.0 17.6 5504.9 19.2 299.9 5.8
Suppliers & buyers Credits 979.5 3.3 782.7 2.7 (196.8) (20.1 )
'Egyptian bonds and notes 1861.9 6.3 1569.1 5.4 (292.8) (15.7 )
Long-term Deposits 300.0 1.0 0.0 0.0 (300.0) (100.0 )
Private sector (Non guaranteed) 88.7 0.3 79.0 0.3 (9.7) (10.9 )
2- Short term debt : 1633.0 5.5 1511.5 5.3 (121.5) (7.4 )
Deposits 633.1 2.1 480.6 1.7 (152.5) (24.1 )
Other Facilities 999.9 3.4 1030.9 3.6 31.0 3.1
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
(5/8) Distribution of External Debt by Main Currencies
(US$ mn)
June 2006 * March 2007 * Change

End of
Value % Value % (-)
Total 29592.6 100.0 28743.5 100.0 (849.1)
US dollar ** 12456.6 42.1 11350.5 39.5 (1,106.1)
Canadian dollar 164.0 0.6 153.0 0.5 (11.0)
Australian dollar 129.0 0.4 134.0 0.5 5.0
Swiss franc 550.0 1.9 534.0 1.9 (16.0)
- 155 -
Sterling pound 247.0 0.8 256.0 0.9 9.0
Japanese yen 3531.0 11.9 3391.0 11.8 (140.0)
Danish krone 144.0 0.5 146.0 0.5 2.0
Norwegian krone 28.0 0.1 1.0 0.0 (27.0)
Swedish krona 37.0 0.1 36.0 0.1 (1.0)
Kuwaiti dinar 1450.0 4.9 1399.0 4.9 (51.0)
Saudi riyal 37.0 0.1 36.0 0.1 (1.0)
UAE dirham 45.0 0.2 43.0 0.1 (2.0)
Euro 9427.0 31.9 9839.0 34.2 412.0
SDRs 1347.0 4.5 1425.0 5.0 78.0
Source: Loans & External Debt Department- CBE
* Provisional.
** Including other liabilities.
(6/1) Number of Arrivals and Tourist Nights of Departures (by Group)
(In Thousand)
July/March
2004/2005 2005/2006 2006/2007
Tourists % Tourist % Tourists % Tourist % Tourists % Tourist %
Nights Nights Nights
Total 6491 66154 6501 65493 7216 72781

European Countries 4494 100.0 41861 100.0 4330 100.0 39644 100.0 4899 100.0 44100 100.0
East Europe 1078 24.0 9959 23.8 1210 27.9 10763 27.1 1598 32.6 14306 32.4
West Europe 3416 76.0 31902 76.2 3120 72.1 28881 72.9 3301 67.4 29794 67.6
- 156 -
Germany 784 17.5 8370 20.0 708 16.4 7336 18.5 778 15.9 7470 16.9
United Kingdom 504 11.2 4420 10.6 737 17.0 6410 16.2 792 16.2 6958 15.8
Italy 722 16.1 6047 14.4 532 12.3 4312 10.9 566 11.6 4524 10.3
France 373 8.3 3469 8.3 290 6.7 2690 6.8 288 5.9 2577 5.8
Spain 136 3.0 1164 2.8 104 2.4 983 2.5 125 2.5 1124 2.6
Switzerland 101 2.2 1014 2.4 87 2.0 813 2.0 90 1.8 836 1.9
Other 796 17.7 7418 17.7 662 15.3 6337 16.0 662 13.5 6305 14.3
Middle East Countries 1312 100.0 16760 100.0 1405 100.0 17579 100.0 1433 100.0 19018 100.0
Libya 269 20.5 3596 21.4 304 21.6 3729 21.3 360 25.1 4043 21.3
Saudi Arabia 251 19.1 4654 27.8 293 20.9 4891 27.8 312 21.8 5195 27.3
Jordan 93 7.1 966 5.8 97 6.9 1005 5.7 120 8.4 1190 6.2
Kuwait 73 5.6 1241 7.4 78 5.6 1374 7.8 102 7.1 1609 8.5
Palestine 120 9.1 1619 9.6 204 14.5 1917 10.9 110 7.7 1639 8.6
Syria 68 5.2 664 4.0 71 5.0 701 4.0 80 5.6 832 4.4
Other 438 33.4 4020 24.0 358 25.5 3962 22.5 349 24.3 4510 23.7
Source : Central Agency for Public Mobilization and Statistics.
(6/1) Number of Arrivals and Tourist Nights of Departures (by Group)(Contd.)
(In Thousand)
July/March
2004/2005 2005/2006 2006/2007

Tourists % Tourist % Tourists % Tourist % Tourists % Tourist %
Nights Nights Nights
African Countries 190 100.0 2221 100.0 204 100.0 2455 100.0 239 100.0 2971 100.0
Sudan 74 39.0 1280 57.6 75 36.8 1379 56.2 97 40.6 1752 59.0
Tunisia 23 12.1 200 9.0 25 12.3 223 9.1 28 11.7 245 8.2
Algeria 17 8.9 155 7.0 16 7.8 146 5.9 22 9.2 196 6.6
South Africa 16 8.4 102 4.6 16 7.8 116 4.7 19 8.0 131 4.4
- 157 -
Morocco 16 8.4 186 8.4 18 8.8 194 7.9 18 7.5 207 7.0
Other 44 23.2 298 13.4 54 26.5 397 16.2 55 23.0 440 14.8
Americas 201 100.0 2817 100.0 234 100.0 3111 100.0 253 100.0 3494 100.0
United States 131 65.2 2000 71.0 155 66.2 2194 70.5 168 66.4 2479 71.0
Canada 38 18.9 540 19.2 40 17.1 597 19.2 46 18.2 676 19.3
Latin America 32 15.9 277 9.8 39 16.7 320 10.3 39 15.4 339 9.7
Asia & Pacific 291 100.0 2450 100.0 325 100.0 2652 100.0 388 100.0 3144 100.0
Japan 57 19.6 387 15.8 58 17.9 400 15.1 82 21.0 537 17.1
Australia 38 13.1 526 21.5 42 12.9 557 21.0 41 10.6 545 17.3
South Korea 33 11.3 161 6.6 43 13.2 202 7.6 48 12.4 234 7.4
China 26 8.9 185 7.5 30 9.2 216 8.1 48 12.4 327 10.4
India 32 11.0 236 9.6 43 13.2 307 11.6 47 12.1 361 11.5
Other 105 36.1 955 39.0 109 33.6 970 36.6 122 31.5 1140 36.3
Other Countries 3 - 45 - 3 - 52 - 4 - 54 -
Source : Central Agency for Public Mobilization and Statistics.
(6/2) Number of Tourists (Departures) & Average Stay
( In Thousand)
July /March
2004/2005 2005/2006 2006/2007
Number Average Number Average Number Average

Stay Stay Stay
Total 6137 10.8 6113 10.7 6720 10.8

By Period
- 158 -
July/September 2267 12.4 2167 12.6 2213 13
Oct./December 1863 10 1915 9.9 2150 10
Jan./ March 2007 9.6 2031 9.5 2357 9.5
By Group
Europe 4448 9.7 9.7 4622 9.7
4178
Middle East 1076 14.4 1254 13.4 1316 14.1
Africa 167 13.2 170 14.4 204 14.5
Americas 193 14.6 224 13.9 236 14.8
Asia and the Pacific 249 9.8 284 9.4 239 9.3
Others 4 12.9 3 15.3 4 13.9
Source: Central Agency for Public Mobilization and Statistics(CAPMAS) .
Periodical Publications of the Central Bank of Egypt
Name of Publication Language Periodicity
1 -Monthly Statistical Bulletin Arabic and English Monthly
2 -Economic Review Arabic and English Quarterly
3 -Annual Report Arabic and English Every fiscal year
4 -External Position of the English Quarterly

Egyptian Economy
Notes:
- All publications of the Central Bank of Egypt are available on the CBE's
website : www.cbe.org.eg

EconomicReview 2006 2007-Vol 3 Eng

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CENTRAL BANK OF EGYPT

Research, Development and Publishing Sector

4- Public Finance and Domestic Public Debt

Statistical Section ...……………………………………………………..

GDP (LE bn)

GDP by Sector at Factor Cost (%)

B) Service Sectors 6.3 7.6

Domestic liquidity (M2) 534.7 610.5

Average US Dollar Exchange Rate

- Total Revenues 190.4 122.8

Overall Deficit / Surplus 55.4 29.1

The Egyptian economy continued its strong performance during July/March

In order to maintain an appropriate level of monetary stability, the CBE

Domestic liquidity amounted to LE 610.5 billion at end of March 2007, up

As for credit and banking developments, banks' aggregate financial

As for the execution of the consolidated fiscal operations of the state

Concerning external transactions, the BOP realized an overall surplus of

1- Development and Growth

1/1: Gross Domestic Product

Egypt's economic performance continued to improve during July/March

GDP Growth rate at Factor cost (Constant Prices)July/March

The productive sectors contributed 3.1 percentage points to real GDP at

Share of Production and Services Sectors in Real GDP at Factor Cost,

As the private sector continued to broaden its role in the development

Real GDP Growth Rates of Public and Private Sectors

1/2: GDP by Expenditure

The stronger economic performance was also spurred by a growth of 17.8

٢٠٠ Resources Gap

Domestic Resqurces Gap Exports Imports

CPI-based Inflation Rates (Urban) during July/March 2006/2007

Sugar,jam,honey, Relative Weights of Food (37.5%)

Oils and fats

Annual Inflation Rate of Food and Non-Alcoholic Beverages

Food&Non-alcoholic Beverages Meat

- Transportation increased by 9.8 percent (against 0.7 percent) as a chief

- Culture & recreation increased by 19.5 percent (against 1.8 percent),

- Education increased by 11.1 percent (against 4.6 percent) as a result of the

- Hotels, cafes and restaurants increased by 8.5 percent (against nil).

- Communications increased by 1.2 percent (against a decline of 1.1 percent)

The CPI (Urban) & Main Groups (1999/2000=100)

All Items Food&Non-Alcoholic Beverages

2- Monetary and Banking Developments

The following graph shows the developments in the overnight interbank

Overnight Interbank and Policy Rates

2/1/1: Reserve Money

Reserve Money and Counterpart Assets

Counterpart assets of reserve money augmented as an outcome of the rise in

2/1/2: Banknote Issue

Banknote issue (including subsidiary coins) went up by LE 10.1 billion or

Banknote Issue and Change Rates *

A breakdown of currency in circulation outside the CBE by denomination at

Currency in Circulation outside the CBE*

2/1/3: Payment Systems and Information Technology

In the contexts of the reforms undertaken in the payments system, to

• In preparation for the execution of the RTGS, an experimental operation

• Efforts are currently on track to modify the SWIFT system to be

• The ACH system was applied to settle government finance cheques by

• Concerted efforts are being exerted, in coordination with the Ministry of

2/1/4: SWIFT Local Service and Clearing Houses Activity

Data on banking transfers under the Fin Copy-system, conducted through

SWIFT Local Service Activity

Concerning the Automated Clearing House activities, the number of

July/March 2006/2007 7670 253253 12.4 23.2