Foreign investment hits $1650 billion

"The government will only borrow money for projects with certain success and feasibility, and the loan should have a grant not less than 40 per cent," said Minister of Planning and International Cooperation Ahmed Al-Darsh.

These statements came after a meeting held yesterday with a ministerial group under Prime Minister Atef Ebeid who discussed the international finance plan within the coming period.

Al-Darsh said the average of direct foreign investments over the past eight years has ranged between dlrs 700 million to dlrs 800 million. "This figure has increased to dlrs 1.650 billion, a figure that reflects the trust in the investment and economic policies climate in Egypt," he added.

Darsh said the volume of foreign debt has been decreasing over the past five years by tangible rates. He added that the government is trying to increase foreign investments to reach dlrs 3 billion to represent 4 per cent of the gross domestic product which accounts for LE 350 billion.

The Minister pointed out that the national local savings plan doesn't meet the government's needs to finance its investment schemes.

" Thus, we have no way but to borrow money from foreign parties on the condition that the volume of loan doesn't exceed the rate of debts service estimated at $1.2 billion to $1.6," he concluded.