Measures for reactivating national economy and maintaining stability of exchange market

A number of measures are currently being taken for reactivating national economy and maintaining foreign exchange market stability.

In this context, Prime Minister Atef Ebeid held a meeting with the Board of Directors of the Social Fund for Development in presence of 21 youth who own small size projects benefiting from the Social Fund for Development SFD loans.

Prime Minister. Ebeid decided to reschedule loans of youths who have been unable to repay loans to the SFD for a period of 6-12 months.

Ebeid decided to help them to market their products so that they may become able to repay their installments.

Ebeid also decided to hold consecutive meetings for eliminating obstacles hindering expansion of the small size projects.

He also decided to hold meetings with junior investors who are benefiting from the SFD loans, to provide LE 1.2 billion for creating 250,000 job opportunities for youths, setting up 50 centers for developing small size projects and 35 technological centers.

Ismael Hassan, the Governor of the Central Bank held meeting with chairmen of banks during which he asserted that overdraft centers of all banks have been covered so that they may find themselves in a position that allows them to meet all dollar demands.

He asserted that the Central Bank is following up the situation in the exchange market saying that the CBE will take all measures necessary for maintaining market stability and applying this system successfully. The CBE Governor warned against any deviation from this system. Hassan said positive reflections will emerge on the market soon.

The chairmen of banks have expressed their satisfaction reiterating their full commitment to applying rules of dealing in the foreign exchange free market.

In a related development, transactions on the exchange market yesterday witnessed relative calm as a result of applying rules of dealing in the foreign exchange free market.

Dealers in the exchange market expect backtracking of dollar exchange rate in the upcoming stage due to the hard-line used by the Central Bank to bring speculators out of the market through maintaining control over exchange offices.

Meantime, Deputy Premier and Minister of Agriculture Youssef Wali said that partnership agreement with EU would help increase Egyptian agricultural exports which are free from taxes to EU mainly potatoes which will surge from 110,000 tons to 250,000 tons and orange from 8000 to 60,000 tons.

He said European Union has agreed to exempt Egyptian exports of agricultural commodities, medical and aromatic plants and grape fruit. A report by the Central Bank has referred to increase of the National Investment Bank by 20,7% to have net resources of LE 154.3 billion.

On his part, Hussein AL Gamal, the SFD Secretary General said that the meeting took up giving assistance to set infrastructure for small-scale projects through founding centers to advance such support.

"The meeting called for making an assessment study of the fund's role in providing jobs for the young and the graduates," Gamal said.