Egyptian economy is strong and capable of confronting pressures
Egypt, Economics, 1/19/2002

Egyptian Prime Minister Atef Ebeid said the Egyptian economy is strongly built and has the potential that enable it of confronting pressures, unforeseen renewable changes and maintaining a high growth rate, according to testimony by big world financial establishments mainly the international Monetary Fund.

He said the government is about to take new steps for reactivating the market in the short term.

Addressing a symposium held by Al Ahram under its Board Chairman Ibrahim Nafei, the Prime Minister said the government has decided to apply expansionary policies for increasing government spending by LE 10 billion for a period of 3-5 years.

He said this sum will be provided through restructuring domestic debt.

He said domestic debt has amounted to LE 197 billion adding documents show that the state has big assets against this debt.

Through restructuring programme, the Prime Minister said new resources could be provided for reactivating the market.

He said some millions of feddans in central Sinai and Delta which will be put for sale for providing LE 11 billion.

He said areas in new urban communities would be sold at LE 12 billion along with telecommunications company which would be sold at LE 213 billion.

He said reports indicate that the state has properties which could be liquefied at nearly LE 50 billion adding this sum would be excluded from domestic debt and direct for spending on projects that could reactivate the market.

The Prime Minister said in this way, we could cut down the state debts, thus enabling the state general budget to borrow in full security.

He said these funds could be inflown in the form of national projects in the Egyptian economy.

At his dialogue with Al Ahram writers, the Prime Minister said the government will act in the upcoming stage for helping banks in expanding credit in agreement with the Central Bank.

He said the CBE is thinking of cutting down interest rate on lending adding that the government is prepared to help businessmen who are unable to repay their debts provided that they should act seriously and submit a statement of their assets.

He said the government is keen to provide financial support for exporters adding the government has earmarked a sum for supporting exports.

The Prime Minister said in the context of steps for reactivating the market, there is a dire need for establishing short and long term financing establishments adding the climate of investment should be reconsidered.

The Prime Minister said if tourism continued to decline next year, growth rate will come down to 3,3% adding if tourism relatively improved, growth rate will hit 4,8%. He said IMF expected that when economic situation improve in the year 2003, the Egyptian economy would achieve a growth rate of 5%.

Previous Stories:
  Egypt: No problem in paying foreign due debts   (1/17/2002)
  WB Egypt's economic woes manageable   (1/17/2002)
  Project to turn Fayyum monuments into tourist attraction   (1/17/2002)

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

Search