Cairo – Mubasher: The Commercial International Bank (CIB) on Wednesday confirmed that its 2018 budget would not be impacted by the tax amendments to be carried out on returns from government bonds and treasury bills as these amendments will not be carried out retroactively.
CIB projected that its 2018 budget would not be affected but that its profits for 2019 would decline by around 5%, noting that the level of the decline would depend on the value of loan provisions that are part of the tax, as their value has not yet been agreed upon.
Over the past two weeks, the EGX has suffered a sharp wave of declines pressured by banking stocks, particularly CIB, which had plunged by 13% over the two-week period.
Last week, the Ministry of Finance (MoF) said it signed an agreement with the Federation of Egyptian Banks to implement its suggested tax amendments regarding new bond and T-bill issuances. The amendments will not be implemented retrospectively.
