Binding descision to maintain foreign reserve level
Egypt, Economics, 1/10/2001

Egypt's Prime minister Atef Ebeid annouced new procedures to energize the market and shoot up investments through pumping new projects in the fields of education, health, water, sanitary drainage and highways networks.

During an expanded meeting with investors of 6th October City , Ebeid said the government would channel the necessary finance to promote investment in industrial cities and zones.

Ebeid reaffirmed the government's keenness on supporting serious investors, easing their burdens and allowing them to join investor associations to take part in decision-making on investment in Egypt.

Ebeid said meetings will be held every two months between the government and businessmen, to review problems that hinder economic activities and work to solve them.

"The foreign exchange reserve with the Central Bank stands now at $ 14.3 billion, which is enough to cover the imports for more than nine months," said Ebeid.

He confirmed that the government will work seriously to increase the reserve, adding that the state will not resort to pumping more dollars into the market.

Dr Atef Ebeid called on investors and businessmen to open more markets for Egyptian commodities.

Ebeid hailed President Hosni Mubarak's wise policy of maintaining balance in the process of shifting from state controlled to the market-oriented ecomony without having the people feel the pinch of this radical change.

Dr Atef Ebeid said that the changes witnessed by the neighboring countries and their trade openness as well as the imminent signing of the free trade zone agreement between Egypt and Iraq revives hopes of boosting the Egyptian exports.

He pointed out that the volume of trade exchange between Egypt and Iraq is now $ 1 billion, adding that this figure is bound to increase to $ 3 billion after signing the agreement.

Ebeid stressed the importance of combating smuggling reportedly perpetrated by a few number of traders.

"The government is currently preparing a detailed study on the faltering private sector projects to draw up the suitable solutions," Ebeid said, noting that the study is being prepared in cooperation with the banking system and investor associations.

Ebeid said there is a binding political decision to maintain the level of foreign exchange reserve, noting that the government is seeking to achieve the balance of interests among all brackets in the Egyptian society..

"The Egyptian economy' s growth rate hit 5.5 per cent. Thanks to the governments ës continuous support of the private sector," Ebeid said.

Egypt's oil reserve could meet the domestic need till 2012 and natural gas reserve bit 50 years.

"The government is seeking to provide further facilities and incentives to increase investments in new cities and invigorate the market," he said.

The government drew up three economic legislation : leasing financial lease, mortgage and intellectual property, he said, noting that the three draft laws will be sent to the business organizations within the coming days.

Previous Stories:
  Three touristic projects to be completed   (1/9/2001)
  Egypt, Saudi Arabia to establish free zone area   (1/9/2001)
  Foreign investments rate up by 13 per cent in New Year report   (1/8/2001)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search