Egypt: No problem in paying foreign due debts
Egypt, Economics, 1/17/2002

"Egypt is facing no problems in paying off its due foreign debts in accordance with set schedules," said the Governor of the Central Bank of Egypt.

On January 11, Egypt paid the due debts for bond holders in the from of $ 66 million coupons, said Mahmoud Abul Oyoun in a meeting with economic reporters late Tuesday.

Egypt has also paid $ 168 millions to Paris Club to further prove its solvency at any time, said Abul Oyoun who was responding to questions about Egypt's financial policy and status.

He ruled out any restrictions on hard currency deposits in Egypt.

"There will be no kind of any restrictions on dollar deposits for clients in Egypt," he vowed.

"The ongoing brokerage activities in the hard currency market now do not eye reform but rather quick heaping of profits," he said.

"The CBE will never give in to the brokers' pressures and will accordingly not up the dollar exchange rate against the pound," he vowed.

"Any future decisions will be as much expressive as possible of our hard currency resources," he added.

"The current difference between the selling and buying prices allowed any dealer to make gains under the official rates," said the CBE Governor.

He urged all foreign exchange offices to disgorge the manipulators who ignite speculations that cause market instability.

"So far, 18 exchange offices charged with manipulations have recently been punished," he remarked.

The exchange rates vary quickly in the world "why then should the matter be linked to national dignity when the Egyptian pound is concerned, he wondered.

He said it is incorrect to hold comparison between Egypt's foreign debts which are installed over 25 years for debtors and the Argentine debts which accumulated to extremely dangerous levels.

"Over the next stage, leading bankers in Egypt will be accurately chosen in accordance to perfect criteria including performance efficiency, good reputation and experience," he said.

"Efficient studies had been conducted to improve the infrastructure for the CBE as well as other banks in the country," he added.

"The improvement programme is proceeding on a fast pace since 2000 in order to ease banks' dealing with the most up-to-date technology in relevant fields," said Abul Oyoun.

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