Euromoney director lauds Egyptian economic performance
Egypt, Economics, 9/14/2000

Euromoney General Director Richard Ansor paid tribute to the improvement the Egyptian economy has experienced in the last year, highlighting the country's increase in exports and elasticity in the exchange rate of the Egyptian pound.

Ansor met with reporters on the sideline of Cairo's three-day Euromoney Conference, noting that the government has adopted a new financial policy that makes Egyptian pound exchange rates more elastic.

"No country in the world can impose firm restrictions to fix the exchange rate of its currency," he said.

International economists had warned that the overvaluation of the Egyptian pound was hurting attempts to increase exports.

"Ebeid's government has succeeded in overcoming most of the problems that stemmed from the liquidity crunch," Ansor said, adding that the crisis is over.

"The conference is conveying a message to foreign investors that Egyptian and Arab economies are strong, with the former's annual growth rate expected to reach 6.8 per cent by next year," Ansor added.

Minister of Public Enterprise Mokhtar Khattab yesterday told businessmen and officials attending the conference that the government has spent some LE 4 billion to settle the debts of companies privatized since 1996.

He stressed that the government is committed to continuing the privatization drive it began seven years ago and to preserving the social dimension. "Up to LE 3.5 billion has been allocated to carrying out the state's early retirement scheme, of which 150,000 retired workers are now beneficiaries," Khattab added.

Khattab said that since 1994 the government has offered shares in 135 state-owned companies, fetching LE 15.5 billion on the stock exchange. "By mid-June this year, 120 companies were sold under the privatization programme and the number of holding companies had dropped from 16 to t0," he added.

Chairman of the General Authority for Free Zones and Investment (GAFI) Mohamed el-Ghamrawi also addressed the Conference yesterday, calling upon Arab countries to create a regional economic bloc to promote pan-Arab trade.

"Such a regional entity would help raise the Arab standard of living and achieve integration among Arab markets by activating trade and increasing joint investments," Ghamrawi commented.

"While foreign investments in Arab countries increased, their ratio against Arab investment decreased to just one percent in 1999," El-Ghamrawi noted.

He added that a visible improvement was recorded across the board on Arab stock exchanges, and that Egypt's bourse would lead regional markets in the coming year.

"The government is creating the appropriate climate for attracting foreign investments and is trying to solve any problems that may hinder investors," Ghamrawi emphasized.

Previous Stories:
  Egypt's economy promising and investment-attracting, Ebied asserts   (9/12/2000)
  Ghali: Egypt is one of the most attractive rising markets   (9/16/1999)
  900 businessmen in Cairo today for Euromoney conference   (9/14/1999)

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