Interview at the Inauguration of the new headquarters of the ACC Bank
I first want to thank the President of the Republic, Mr. Ismail Omar Guelleh, for his presence at the ceremony official opening of the new headquarters of the International Bank CAC Djibouti. Your presence here today and your continued support to development and modernization of the banking sector, reflect the clear intention of your government to make Republic of Djibouti a financial center with a regional focus. I also welcome the presence of all the personalities and players in the country's economic development. Today we celebrate with pomp the installation of the Cooperative and Agricultural Credit Bank International, which is now seven the number of credit institutions operating in our country.
Some of my fellow citizens and other economic interest me regularly on the high number of banks currently operating in the financial center of Djibouti. They are assured, a whole section of the Djiboutian population does not benefit yet the benefits of increased financial intermediation and the penetration of banking services remains relatively low in general and especially in inland regions.
All banks, old and new, perform during the last years of significant performance. The long-established banks (BIS and BCI) continued to enjoy a satisfactory situation: the total of their deposits and their lending has respectively increased by 10.2% and 20 2% at end September 2009 compared to the end of 2008. For their part, the new banks already capture Up to 10% market share after only 2 or 3 years of operation. These have collected about $ 13 billion of deposits and EOD have granted facilities to the tune of 4 billion FDJ. Deposits in new banks grew by 25.4% over the last nine months while their funding has increased substantially over the same period (220.8%). For example, deposits of Salaam African Bank has surpassed the 1.7 billion FDJ after only 10 months of activity.
The arrival of the bank subsidiary of the ACC Bank in Sana'a will help further transform the banking landscape in the making more competitive by introducing a wider range of financial products and services. Increased competition and the introduction of new banking services are pledges for greater customer satisfaction Djibouti. Established since 1982
Yemen, the ACC Bank in recent years outstanding performance both in terms of growth in customer deposits as of total assets (43.4% in one year). Tangible sign of its growth, the ACC Bank has consolidated over 41% of its equity over the period 2007-2008. CAC Bank, whose activities are mainly focused in the primary sector, retail trade and finance SMEs, is expected to play a leading role to support the expected growth in certain priority sectors of our economy, especially agriculture and fishing. In an international context marked by the bleak financial crisis and uncertainty, the installation of a new operator in the banking sector confirms, if necessary, the resilience of our economy and medium-term macroeconomic outlook encouraging. The economic and financial performance of Djibouti have improved considerably in 2008 and 2009, despite inflationary pressures globally. The real GDP growth accelerated 5.1% in 2007 to 5.9% in 2008 and inure forecast at over 5% in 2009, driven mainly by foreign direct investment. The share of investment in GDP has indeed increased from 23% in 2005 to nearly 47% in 2008. Fiscal policy remained expansionary due to higher public investment in priority social areas (education, health, water) and infrastructure. The balance on order basis in 2008 recorded a surplus equivalent to 1.3% of GDP. The banking sector has undergone significant developments with an annual growth of broad money 9.6% in 2007 and nearly 20% in 2008. The private sector credit increased by 23% in 2007 and over 27% in 2008 mainly due to booming consumer spending, the upturn in the construction sector and public investment.
growth prospects over the medium term of Djibouti's economy remain strong, driven by major investment projects and the role of banks in financing the economy. Under the new PRGF program concluded in October 2008 with the IMF, the baseline scenario projects a real GDP growth of about 6.3% per annum over the period 2010-2014. The level of inflation should be maintained around 4% and control the budget deficit -0.5% of GDP over the same period. The banking sector should strengthen its role in financing private investment. Lending to the economy should grow by more than 20% annually over the next five years. To preserve macroeconomic stability, our country has continued to implement structural reforms while ensuring adapt to changes in economic conditions and prospects for socio-economic.
Recent measures initiated by the government 's essentially articulate around improving the country's external competitiveness and business climate, the revised investment code and the development of new commercial code are the clearest examples. Other reforms include the introduction of VAT and the increasing diversification of our economy.
regard to reforms of the financial sector, a program of financial sector assessment was conducted in late 2008, at our request, by experts from the IMF and World Bank. Overall, resistance tests conducted under this program have shown that the financial sector is robust and Djibouti is not exposed immediate threat to a routine. In recent months, the emphasis was placed on the bank ability of the population and access to financial services relatively low in Djibouti. The adoption of the circular No. 27 enacted by the President of the Republic February 14, 2009 and instructed the Central Bank of Djibouti has instituted the "right to account" for any natural or legal person established in Republic of Djibouti, without a bank account and possessing a regular income in an amount greater than or equal to 40 000 EOD. I wish to solemnly thank the president for enacting the circular to promote banking services for Djibouti, because it is an essential element of reconciliation between the people of Djibouti with low incomes and banks instead.
This tends to raise the rate of bank initially affected all state employees and then be extended to employees of public institutions and the private sector. Spurred on by this measure, the total number of banking customers grew by 40,541 in late December 2008 to nearly 53,332 customers in late September 2009, an increase of more than 12,700 customers in just nine months.
Alongside this policy of banking services, and in accordance with the national initiative for social development, national authorities have focused on the development of microfinance, a major tool to fight against poverty and social exclusion. Two organizations co-operative and mutualist (CPEC and CNEC) have been recently created and now comprise nearly 6,400 members. These two entities have so far been able to collect more than 132 million FDJ deposits while loans distributed are around 250 million FDJ in October 2009.
To complement the range of financial products and services offered to clients and mentor new banks, the central bank is developing a regulatory framework specific to the development of Islamic finance. Little known actor of global finance, a few years ago, Islamic finance is now experiencing rapid growth and is an alternative to conventional activities to better meet the expectations of a customer who does not yet have offers tailored to their religious beliefs.
I could not conclude my statement without expressing my thanks and my congratulations to the Board of Directors and staff of ACC Bank International Djibouti. I wish every success to officers and employees This new banking institution.
Source
I first want to thank the President of the Republic, Mr. Ismail Omar Guelleh, for his presence at the ceremony official opening of the new headquarters of the International Bank CAC Djibouti. Your presence here today and your continued support to development and modernization of the banking sector, reflect the clear intention of your government to make Republic of Djibouti a financial center with a regional focus. I also welcome the presence of all the personalities and players in the country's economic development. Today we celebrate with pomp the installation of the Cooperative and Agricultural Credit Bank International, which is now seven the number of credit institutions operating in our country.
Some of my fellow citizens and other economic interest me regularly on the high number of banks currently operating in the financial center of Djibouti. They are assured, a whole section of the Djiboutian population does not benefit yet the benefits of increased financial intermediation and the penetration of banking services remains relatively low in general and especially in inland regions.
All banks, old and new, perform during the last years of significant performance. The long-established banks (BIS and BCI) continued to enjoy a satisfactory situation: the total of their deposits and their lending has respectively increased by 10.2% and 20 2% at end September 2009 compared to the end of 2008. For their part, the new banks already capture Up to 10% market share after only 2 or 3 years of operation. These have collected about $ 13 billion of deposits and EOD have granted facilities to the tune of 4 billion FDJ. Deposits in new banks grew by 25.4% over the last nine months while their funding has increased substantially over the same period (220.8%). For example, deposits of Salaam African Bank has surpassed the 1.7 billion FDJ after only 10 months of activity.
The arrival of the bank subsidiary of the ACC Bank in Sana'a will help further transform the banking landscape in the making more competitive by introducing a wider range of financial products and services. Increased competition and the introduction of new banking services are pledges for greater customer satisfaction Djibouti. Established since 1982
Yemen, the ACC Bank in recent years outstanding performance both in terms of growth in customer deposits as of total assets (43.4% in one year). Tangible sign of its growth, the ACC Bank has consolidated over 41% of its equity over the period 2007-2008. CAC Bank, whose activities are mainly focused in the primary sector, retail trade and finance SMEs, is expected to play a leading role to support the expected growth in certain priority sectors of our economy, especially agriculture and fishing. In an international context marked by the bleak financial crisis and uncertainty, the installation of a new operator in the banking sector confirms, if necessary, the resilience of our economy and medium-term macroeconomic outlook encouraging. The economic and financial performance of Djibouti have improved considerably in 2008 and 2009, despite inflationary pressures globally. The real GDP growth accelerated 5.1% in 2007 to 5.9% in 2008 and inure forecast at over 5% in 2009, driven mainly by foreign direct investment. The share of investment in GDP has indeed increased from 23% in 2005 to nearly 47% in 2008. Fiscal policy remained expansionary due to higher public investment in priority social areas (education, health, water) and infrastructure. The balance on order basis in 2008 recorded a surplus equivalent to 1.3% of GDP. The banking sector has undergone significant developments with an annual growth of broad money 9.6% in 2007 and nearly 20% in 2008. The private sector credit increased by 23% in 2007 and over 27% in 2008 mainly due to booming consumer spending, the upturn in the construction sector and public investment.
growth prospects over the medium term of Djibouti's economy remain strong, driven by major investment projects and the role of banks in financing the economy. Under the new PRGF program concluded in October 2008 with the IMF, the baseline scenario projects a real GDP growth of about 6.3% per annum over the period 2010-2014. The level of inflation should be maintained around 4% and control the budget deficit -0.5% of GDP over the same period. The banking sector should strengthen its role in financing private investment. Lending to the economy should grow by more than 20% annually over the next five years. To preserve macroeconomic stability, our country has continued to implement structural reforms while ensuring adapt to changes in economic conditions and prospects for socio-economic.
Recent measures initiated by the government 's essentially articulate around improving the country's external competitiveness and business climate, the revised investment code and the development of new commercial code are the clearest examples. Other reforms include the introduction of VAT and the increasing diversification of our economy.
regard to reforms of the financial sector, a program of financial sector assessment was conducted in late 2008, at our request, by experts from the IMF and World Bank. Overall, resistance tests conducted under this program have shown that the financial sector is robust and Djibouti is not exposed immediate threat to a routine. In recent months, the emphasis was placed on the bank ability of the population and access to financial services relatively low in Djibouti. The adoption of the circular No. 27 enacted by the President of the Republic February 14, 2009 and instructed the Central Bank of Djibouti has instituted the "right to account" for any natural or legal person established in Republic of Djibouti, without a bank account and possessing a regular income in an amount greater than or equal to 40 000 EOD. I wish to solemnly thank the president for enacting the circular to promote banking services for Djibouti, because it is an essential element of reconciliation between the people of Djibouti with low incomes and banks instead.
This tends to raise the rate of bank initially affected all state employees and then be extended to employees of public institutions and the private sector. Spurred on by this measure, the total number of banking customers grew by 40,541 in late December 2008 to nearly 53,332 customers in late September 2009, an increase of more than 12,700 customers in just nine months.
Alongside this policy of banking services, and in accordance with the national initiative for social development, national authorities have focused on the development of microfinance, a major tool to fight against poverty and social exclusion. Two organizations co-operative and mutualist (CPEC and CNEC) have been recently created and now comprise nearly 6,400 members. These two entities have so far been able to collect more than 132 million FDJ deposits while loans distributed are around 250 million FDJ in October 2009.
To complement the range of financial products and services offered to clients and mentor new banks, the central bank is developing a regulatory framework specific to the development of Islamic finance. Little known actor of global finance, a few years ago, Islamic finance is now experiencing rapid growth and is an alternative to conventional activities to better meet the expectations of a customer who does not yet have offers tailored to their religious beliefs.
I could not conclude my statement without expressing my thanks and my congratulations to the Board of Directors and staff of ACC Bank International Djibouti. I wish every success to officers and employees This new banking institution.
Source
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