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Bloomberg- French And Uk Banks Have Most Exposure To Egyptian Loans

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French, British Banks Have Most Exposure to Egyptian Loans, BIS Data Show

International banks have lent $49.3 billion to Egyptian borrowers, with French and U.K. banks having the most exposure to the country torn by anti-government protests, data from the Bank for International Settlements show.

French banks’ claims on Egyptian borrowers stood at $17.6 billion at the end of September, BIS statistics released Jan. 27 show. U.K. banks’ exposure was $10.7 billion and Italian banks had $6.3 billion in claims, the data show. European banks’ total claims amounted to $40.3 billion.

Societe Generale’s Egypt subsidiary, National Societe Generale Bank, had 4.1 billion euros ($5.6 billion) in loans and 6.2 billion euros of deposits in the country, according to the Paris-based bank’s third-quarter results presentation. Societe Generale took “appropriate measures” to protect its 3,700 staff in the country, it said on Jan. 28.

Egypt’s banks and markets stayed shut today after a week of clashes in the most populous Arab country that left as many as 150 people dead. Tanks are guarding banks and government buildings in Cairo that are vulnerable to looting, state television said. The EGX 30 stock index had a two-day drop of 16 percent through Jan. 27.

Profit Impact

For Societe Generale, Egypt represents about 3 percent of annual net profit, compared with 1.5 percent for Credit Agricole SA, France’s third-largest bank, and 0.2 percent for BNP Paribas, Keefe, Bruyette & Woods Ltd.’s London-based analyst Jean Pierre Lambert estimated in a Jan. 28 note to investors.

Societe Generale fell as much as 3.7 percent in Paris trading today, and was down 40 cents, or 0.8 percent, to 47.92 euros by 2:26 p.m. Credit Agricole declined as much as 2.4 percent, before rebounding to rise 0.6 percent.

Intesa Sanpaolo owns about 70 percent of Bank of Alexandria SAE, Egypt’s fifth-biggest bank by assets with about 200 branches and 2.3 billion euros in loans, according to a spokeswoman of the Milan-based bank.

Societe Generale owns 77 percent of Cairo-based NSGB, according to the bank’s website, and operates 139 branches. Credit Agricole Egypt, also based in Cairo, had a staff of about 1,950 people and 70 branches at the end of 2009. Credit Agricole Egypt’s 10 expatriate staff remain in the country, while their families have left by plane, a Paris-based spokeswoman said by phone today. Credit Agricole is monitoring “carefully” unfolding events in Egypt, she said.

Intesa, Barclays

Intesa Sanpaolo, which has brought back six employees from Egypt, isn’t concerned about the safety of its unit in Cairo, Chief Executive Officer Corrado Passera told reporters in Rome. Intesa advanced 1.5 percent in Milan trading.

Barclays Plc said it has shut its network of 65 branches following advice from the Central Bank of Egypt. “We are monitoring the situation,” said London-based spokesman Perry Jones by phone. The bank has 2,100 employees in the country.

The BIS consolidated banking statistics are based on reporting by central banks in 30 countries. It records lending to public and private borrowers by both headquarters and local subsidiaries, and assigns the claims to countries based on the nationality of the lender’s owner.

Following is a breakdown of the Egyptian exposure as of the end of September, based on the BIS data:

Nationality Consolidated

Of Lender Claims on Egypt

($ million)

Total foreign claims 49,275

European Banks 40,300

France 17,573

United Kingdom 10,655

Italy 6,293

United States 5,350

Germany 2,478

Switzerland 1,148

Bloomberg video


Bloomberg TV Report on Cost of Insuring Egyptian Debt

Jan. 31 (Bloomberg) -- Bloomberg's Manus Cranny reports on the increase in the cost of insuring Egyptian debt as protesters defied a curfew to press forward with a week-long uprising against President Hosni Mubarak. Maryam Nemazee also speaks on Bloomberg Television's "Countdown." (Source: Bloomberg)

I wonder who will meet the cost of all this extra insurance?

The banks, their customers, or the good old British tax payer?

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Erm Bangaldesh?

Methinks the UK banksters have stuffed cash up every backside of every nation on the planet - which is why they're bust. Perhaps North Korea was immune?

The French have cultural ties to the Arab world. On which point, they froze the accounts of the deposed Tusian President before he fled with $35m of gold to Saudi Arabia.

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Yes, the UK may have ruled it but France has far more influence in the entire Arab world, as do its big companies. It was far more of a wrench for the French to leave Algeria than the British to vacate Egypt.

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Wasn't Egypt coloured pink? Ran all the way to Cape Town from Cairo.

Different countries had different status though - Egypt I think was a protectorate and the Sudan was jointly administered by the UK and Egypt I think.



Is that the famous Cecil Rhodes picture you are describing?

Rule Britannia!

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  • 312 Brexit, House prices and Summer 2020

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