The Bank for International Settlements for the first time unveiled the extent of capital flight from Egypt and Libya in its latest quarterly report, noting that outflows from Egypt in the first three months of 2011 surged at their highest quarterly rate ever.
Internationally active banks reported that liabilities to residents of Egypt (in banking terms, a liability is deposit from a resident whereas an asset is a loan to a resident) rose by $6.4bn or 26 per cent, according to the BIS. Liabilities to residents of Libya rose by a more modest $2.2bn or a rise of 3.7 per cent.
“These developments most likely reflected domestic funds being moved out of the two countries as a result of the elevated levels of political and economic uncertainty,” the BIS said in its report.
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