Tourism, foreign investments, exports undermined by recent September 11 incidents

Thought it is difficult to assess its magnitude, the Egyptian economy is bound to suffer from the adverse impact of the terrorist attacks on the U.S. last September, the new Central Bank Governor Mahmoud Abul Oyoun said.

He estimated a drop in foreign investment by about 2.5 billion dollars next year and a drop in tourism by 60 percent.

Addressing the Economic Committee of the ruling National Democratic Party, Abul Oyoun said that exports to Europe were also bound to be affected due to the high cost in transport, insurance and freighting.

He also said that remittances from Egyptians working abroad were also curtailed.

Abul Oyoun noted that Egyptian imports are estimated at $ 17 billion annually and stressed on the importance of rationalizing the use of foreign currencies.

Abul Oyoun said that banks savings were on the rise and was completely safe.

All 63 banks and their 2,900 branches throughout the country have enough guarantees to protect savings which have reached according to the latest statistics LE 301 billion.

He said that the volume of domestic credits and lending reached LE 326 billion of which the private sector obtained LE 142.2 billion, compared to LE 127 billion last year, which indicates that it is continuously on the rise.

As a result of the recent measures to ensure liquidity and increase reserves, interbank credits and loans since October 4, dropped from 14 percent to seven percent, he said.