Defending social development fund's policy

Egyptian Minister of State for Planning, Ahmed Darsh, said Wednesday that total financial resources available for the Social Development Fund amount to about one billion, 593 million and 895 thousand pounds.

The cost of management of these funds amounts to about 23.64 million pounds, a percentage of 2.1 per cent of total resources, which is the lowest financial cost at world level.

Speaking before the People'sYouth Committee Wednesday, the Minster said that 17 international financial organizations have testified to the soundness of the manner in which these funds are managed.

He pointed out that severe criticism gives untrue picture and weakens the position of Egyptian negotiators when discussing loans for the Fund in future.

On his part Minister of Economy Youssef Boutros Ghali said the aim of the government is to strengthen the role of the Social Fund for Development and to encourage the banking system to provide loans for youth projects.

He pointed out that the banking system cannot alone undertake providing loans for youth.

He said that an organization to guarantee credit for small projects has been established and has so far provided collateral for more than a billion pounds, a percentage of 75 per cent of the volume of loans directed to youth.

Assembly members had asked banks expand loans to youth and provide loans without guarantees because youth have no assets to provide as collateral. They referred to the experience of some Latin American countries in this respect.