The Central Bank of Egypt (CBE) has chosen two investment banks as advisers to handle the United Bank of Egypt’s shares sale.
The names of the two investment banks for the United Bank share sale will be announced after receiving an approval from the Egyptian authorities. The announcement is expected to come within a week’s time.
CBE Governor Tarek Amer, told the media that, “The United Bank is currently owned by the CBE and it is being restructured in preparation for the share sale, as the CBE is not allowed to maintain ownership of any banks.”
The central bank’s decision to proceed with the United Bank share sale took place in March 2016. Its decision is a part of Egypt’s banking reforms.
Amer told the Middle East News Agency (MENA) that the United Bank shares will be sold to an American investment fund. However, the name is yet to be disclosed.
Currently, the Egyptian officials are discussing further cooperation with the International Monetary Fund (IMF) regarding structural reforms. Egypt has already implemented fiscal and monitoring reforms—and is now focused on structural reforms.
The country’s robust economic development and a radical reform programme over the last twenty years is transforming its banking system. With that, its financial institutions are asserting themselves to ensure Egypt’s economic success.
More recently, the cabinet approved a draft bill regulating the central bank and the overall banking system. According to the draft bill, the central bank will have technical, financial and administrative independence.