Gap between resources and foreign exchange utilizations to be filled
Egypt, Economics, 2/19/2002

The government of Prime Minister Atef Ebeid will start after Corban Bairam vacation to carry out a full dressed plan for reactivating economic performance and reviving the market in implementation of President Mubarak's assignments.

The plan depends on orienting all new investments to promote the interests of the limited income brackets including financing lost cost housing projects, extending water supplies to all villages, developing slums and expanding credit extended to citizens.

Ebeid said policies adopted by the government during the past period filled the gap between resources and foreign currency utilizations and provided a surplus asserting capability of the Egyptian economy to grow in spite of any extraordinary conditions.

He said the convening of the conference of friendly and donor countries in Sharm, E1 Sheikh was a testimony of appreciation and confidence in Egypt under the rule of President Mubarak.

"The market reactivation plan depends on increasing government spending according to policies maximizing investment in the high return projects that can benefit the largest sector of citizens," the Prime Minister added.

He said a big part of reserve retained by banks in the Egyptian pound in the Central Bank will be earmarked for extending loans to youth housing projects adding banking credit will be offered on concessionary terms to all categories.

He said installment sale would also be regulated after Corban Bairam, adding thathe would draw up a programme the following week for repaying LE 32.2 billion of the government debts to private sector. This will reactiviate this sector and increase its inputs to development process,"he elaborated.

The Prime Minister said capitals of investment banks will be increased in order to expand their inputs in direct foreign investment transactions and the establishment of new companies in the fields of real estate financing and others in the field of restructuring and rehabilitation as well as development of newly reclaimed areas.

He said Egypt's Arab affiliation was behind all kinds of support by Arab development funds, adding that the volume of inputs by the Arab fund for economic and social development have reached LE 7.8 billion for limited income projects, schools, health centres, sanitary drainage projects, and gas.

The prime Minister had met yesterday Abdel Latif Al Hamad, the chairman of the Arab Development Fund who said after the meeting that the fund decided to appropriate 50 million dollar to provide the villages with drinking water.

He said the fund will also provide 50 million dollars for gas liquefying projects in cooperation with the Kuwait fund.

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