Hani Tawfiq Warns of Risks in Consumer Financing
The article discusses the rising activity of consumer financing in Egypt, where the value of financed amounts during the first half of 2026 increased to 71.839 billion Egyptian pounds, a rise of 88.5% compared to the same period in 2025. The total financing for 2025 reached approximately 96.3 billion pounds, marking a 57% increase from 2024. This growth has led to the number of beneficiaries rising to about 8.5 million customers. It was clarified that financing activities are heavily concentrated on the purchase of electronics, cars, and household goods, while the local savings rate has declined to around 1.2% of GDP—a dangerously low level compared to previous rates exceeding 6%. Experts pointed out that the deterioration in savings is linked to a change in individuals' financial behavior, with some directing their funds toward alternative investments such as real estate and gold, while others prefer to buy goods on installment plans. The supervisory authority is implementing new measures to ensure behavioral assessments of customers before granting financing, aiming to reduce risks to the financial system.
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