Measurers to enhance banks' role in modernizing industry
Egypt, Economics, 7/29/2002

Egypt decided to launch urgent measures to enhance banks' role in modernizing industry and promoting small-sized projects and real estate finance.

Prime Minister Atef Ebeid Saturday held three ministerial meetings to discuss public sector banks' performance during the past fiscal year as well as measures to resuscitate small-sized enterprises republic-wide and cotton growing strategies.

Central Bank of Egypt (CBE) Governor Mahmoud Abul-Oyoun, emerging from the first meeting, said the indicators of the four public banks (the National Bank of Egypt (NBE), Banque Misr, Banque du Caire and Bank of Alexandria) point out that their net profits hit LE 850 million after paying the taxes and duties.

The meeting probed public sector banks' participation in financing a program to modernize industry, in implementation of the Egyptian-European partnership agreement, said Abul-Oyoun.

He added that the upcoming stage will see numerous steps to work on upping the resources of the Industrial Development Bank of Egypt (IDBE), noting the meeting also considered the role of Credit Foncier Egyptian (CFE) in the real estate finance of intermediate and low-cost housing units in a period not more than three months.

After the second meeting, Minister of Local Development Moustafa Abdul-Qader said several decisions were taken to develop and spread small-sized enterprises in all governorates, adding applicants will be given immediate temporary licenses.

The government targets that the small-sized enterprises would absorb nearly one-third of the current workforce that hits 19.4 million workers, said Abdul Qader.

In the third meeting, the premier pored over strategies of the cotton policies through the report submitted by Deputy Premier and Minister of Agriculture and Land Reclamation Youssef Wali.

The head of the Holding Company for Cotton also offered a comprehensive report on cotton export policies.

Meanwhile, Ebeid called on the businessmen who failed to meet their obligations with banks and had to go outside the country to return home to settle their debts , affirming that no legal or police measures will be taken against them.

The CBE has provided the funds necessary for employees' loans, he said, noting that banks have already received the sum of LE 600 million.

Ebeid said the dollar exchange rate has declined recently by 11 per cent without any administrative measures on the part of the government.

The government, economic institutions and public business sector, on their part, decreased 40 percent of the demand on dollar, said the prime minister, adding that clear-cut instructions were made not to purchase any foreign product that has an Egyptian peer.

Previous Stories:
  Egypt to sell 170 enterprises   (7/27/2002)
  Egypt to further explore African markets   (7/27/2002)
  EGPC announces eight zones for oil exploration   (7/24/2002)

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