moonriver Posted January 31, 2011 Share Posted January 31, 2011 http://www.bloomberg.com/news/2011-01-31/french-u-k-banks-have-most-at-risk-in-egypt-bis-data-show.html 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 http://www.bloomberg.com/video/66306708/ 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? Quote Link to comment Share on other sites More sharing options...
blobloblob Posted January 31, 2011 Share Posted January 31, 2011 Is there a single screwed-up country on the planet that doesn't count us among its largest creditors? Quote Link to comment Share on other sites More sharing options...
theonlywayisdown Posted January 31, 2011 Share Posted January 31, 2011 in the words of Barry and Paul Chuckle, oh dear, oh dear... Quote Link to comment Share on other sites More sharing options...
ken_ichikawa Posted January 31, 2011 Share Posted January 31, 2011 Is there a single screwed-up country on the planet that doesn't count us among its largest creditors? Erm Bangaldesh? Quote Link to comment Share on other sites More sharing options...
blobloblob Posted January 31, 2011 Share Posted January 31, 2011 Erm Bangaldesh? Right - I'm moving my millions there NOW. Quote Link to comment Share on other sites More sharing options...
shermanator Posted January 31, 2011 Share Posted January 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
shermanator Posted January 31, 2011 Share Posted January 31, 2011 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. Quote Link to comment Share on other sites More sharing options...
Papa Serf Posted January 31, 2011 Share Posted January 31, 2011 I guess having London as the financial capital of the world was not such a good idea. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted January 31, 2011 Share Posted January 31, 2011 And this is the the thanks we get for giving them Lawrence? Why did we bother Quote Link to comment Share on other sites More sharing options...
pl1 Posted January 31, 2011 Share Posted January 31, 2011 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. http://www.britishem...proom/egypt.htm Is that the famous Cecil Rhodes picture you are describing? Rule Britannia! Quote Link to comment Share on other sites More sharing options...
Stay Beautiful Posted January 31, 2011 Share Posted January 31, 2011 Heres an Algerian with an Italian thrown in. Quote Link to comment Share on other sites More sharing options...
Guillotine Posted January 31, 2011 Share Posted January 31, 2011 Pyramid schemes? Quote Link to comment Share on other sites More sharing options...
@contradevian Posted January 31, 2011 Share Posted January 31, 2011 Merv and Dave had better get another bail out organised, and close down the NHS to pay for it! Quote Link to comment Share on other sites More sharing options...
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