Cabinet reviews Egypt's policy statement
The Egyptian Cabinet, meeting Wednesday under Prime Minister Atef Ebeid, said that policies pursued by the Israeli government pose a threat to security and stability in the entire area and warned against the danger of Israel continuing policies of violence, killing and intimidation against the Palestinians and biased Israeli allegations which are without foundation.
Minister of Information Safwat Al-Sherif said that the Cabinet warned against the danger of ignoring the terms of reference of peace and not responding to efforts being exerted by the international community.
The Cabinet stressed that security and stability will not be realized for the Israeli people except through return to dialogue and that what is taking place would only deepen hatred and provoke feelings and that security depends on the restoration of the legitimate rights of the Palestinians so that stability may be realized for the Palestinians and Israelis.
Minister of Information Safwat Al-Sherif said that the Cabinet discussed at its meeting today a report on foreign policy which reviewed the serious situation in the occupied Palestinian territories as a result of Israeli intransigence and its operations of violence, killing and the demolition of Palestinian houses.
The Cabinet reviewed efforts exerted to deal with th serious situation and noted that these efforts are faltering because of the aggressive actions which Israel commits, unheeding the efforts of and decisions taken by the international community.
The Minister of Information said that the Cabinet discussed the results of current contacts undertaken by the political leadership in Egypt with each of the United States and European Union with the aim of continuing peace efforts asking the international community to shoulder its responsibility towards serious operations taken by Israel which would have serious impact on the entire area.
The Cabinet reviewed a working paper on Egyptian-Chinese cooperation in the economic and educational fields in addition to agreements to be signed during the forthcoming visit of President Mubarak to China.
Minister of Information Safwat AL Sherif said that Prime Minister Atef Ebeid stressed at the Cabinet meeting Wednesday full commitment to all policies which were outlined in the government's policy statement Ebeid delivered before the People's Assembly on January 8 in which a definition was made of the policies and the ministers responsible for executing them according to timetables in order to ensure execution at the rates and according to the priorities mentioned in the various political, economic, social and services fields.
Sherif said that foremost among the programs to which the government is committed, and which were stressed by the Prime Minister, is the programme of employment-either through providing job opportunities, or training and rehabilitation-and stressed that the government is fully committed to carry out the programmes in complete transparency and according to what was presented to the People's Assembly and the documents and files which the Prime Minister deposited with the secretariat of the People's Assembly.
He added that the government has presented, in all transparency, all issues before the People's Assembly which is responsible for control, follow-up and legislation.
As regards the economic aspects, the Prime Minister stressed that the Egyptian economy is strong and cohesive-these are confirmed facts and should not be doubted.
Sherif noted that Ebeid outlined before the Council of Ministers the dimensions of the economic issues through which Egypt is passing and which are represented in the fact that these issues are related to world economy and the repercussions of the September 11 events.
The Minister said that the economic report which was reviewed by the Cabinet Wednesday showed that there are positive indicators about the beginning of improvement and getting out of stagnation as shown by confirmed figures and indicators about the movement of markets and production inputs as regards a number of industries.
The Cabinet reviewed at its meeting measures outlined by the government as regards defining the economic problem, without understatement and without exaggeration in dealing with the movement of national economy and facing the slow pace of economy and regulating the exchange rate.
In this respect, the Prime Minister said that the government deals with economic conditions in a daily manner and in complete flexibility and through a daily follow up of the movement of daily imports and the movement of the exchange rate market.
The Minister of Information said that the economic report also showed the influences which appeared on the exchange market in the past three months and said that the market was not affected by the events of September 11 but also by a daily increase in demand on foreign currency during the past three months in order to provide the needs of one million people who performed the minor pilgrimage during this period, an increase of 40 per cent compared with their number during the same period last year.
Information Minister Safwat Al Sherif said that the exchange rate of the dollar was also exposed to pressures during the current haj (pilgrimage) season and stressed that the banking sector will provide the foreign currency needs of pilgrims traveling through tourist companies and those traveling through societies in order to pay the fees in order to prevent a haphazard rise in the dollar exchange rate and guard against exploitation of the pilgrims by the exchange companies.
The Minister explained that demand on the dollar in this period is temporary and the exchange rate of the pound against foreign currencies cannot be fixed in an established manner during this period.
The Minister of Information pointed out that the Cabinet decided, as regards pilgrims traveling through tourist companies and others traveling through societies, that the tourist companies and the societies should submit to the four public sector banks approved lists of the pilgrims they will deal with this season in order to issue the due fees for pilgrims traveling through tourist companies.
As regards tourists traveling through societies, numbering 13,500, the societies should submit approved lists of the names of those who did not get their needs of foreign currency so that each pilgrim may receive from one of the four banks the sum of 4,000 Saudi rials by a cheque to be paid by one of these banks to the authority concerned in Saudi Arabia as of next Sunday.
The Minister of Information said that the economic report also referred to exaggeration in what is published about the rise in the exchange rate of the dollar on the basis of individual cases and said that this poses a danger and encourages manipulation and exploitation by some who have limited interest.
In this respect, the Cabinet appealed to the establishments concerned to make immediate correction of what is published in this connection. In the light of this, the cabinet decided -- and stressed the following:
First: Adherence to the government's policy as regards the management of the exchange market through the exchange rate offered by the Central Bank of Egypt considering that it represents the real and actual exchange rate of the Egyptian pound against foreign currencies.
Second: To adopt a decisive policy and control on the exchange rate market as regards companies which deviate from the rules laid down by the Central Bank of Egypt and to take deterrent legal measures against companies which withhold dollars or manipulate and resort to outbidding on its exchange rate.
In the field of tourism, the Minister of Information said the cabinet reviewed a report by the Minister of Tourism which referred to the beginning of a real and actual improvement in the movement of tourists coming to Egypt and the beginning of a confirmed gradual restoration of the tourist movement in the coming months and a return to the natural position which would ensure a flow of foreign currency and activation of markets.
The Cabinet reviewed a report on the oil policy in Egypt. The Oil Minister presented a summary of oil policies and strategies as was outlined on Tuesday before the President of the Republic.
The Oil Minister said that oil revenues will witness a continued increase this year and in the coming years according to the policies which he explained Tuesday.
The Minister said that the oil sector is fully committed to provide the General Treasury of the state with what it committed itself to on Tuesday before the President of the Republic.
The Minister of Information said that the Cabinet reviewed a report by the Ministry of Internal Trade about an unjustified hike in the prices of a number of agricultural commodities offered on the market and the exploitation of consumers by merchants.
It was decided to regulate prices on the markets, in spite of the freedom of trade, through unions and chambers of commerce in a bid to correct these mistakes.
The Minister said that the consumer should be on the alert and fight any exploitation.
Minister of Information Safwat Al Sherif said that the Cabinet stressed that it was important that trade and industry unions should do their part in upgrading the quality of local products at a reasonable price.
Protecting local industry and local products does not mean that some industries abandon quality or raise prices.
The Minister said that the Cabinet reviewed a financial report presented by Finance Minister Midhat Hassanein in which he said that all dues on the government have been paid up to 15/1/2002.
On Tuesday, 1.4 billion pounds were provided to government agencies to make them available to contractors and suppliers. Any other dues will be paid at once. The Ministry of Finance has provided all the necessary funds.
The Minister of Finance said that the first half of the investment plan (2001/2002) has been funded in full. Steps have been taken to fund the third quarter of the investment plan.
The Minister of Information said that the Cabinet stressed in this respect that movement of national economy depends on more investments and government expenditure on projects of the infrastructure and services projects in addition to expansion in banking credits in order to give the private sector a chance to increase its activity and expand in existing projects or launch new projects.
The Minister of Information said that the Cabinet discussed a report on what was offered by the government about paying debts which are due or the payment of which is faltering as regards borrowers from the banking sector in order to deal with the issue of faltering in repayment debts in connection with investment and production projects.
The Cabinet made an initial review of guidelines to support those who are serious but are back in repaying debts in order to restore economic activity.
The Cabinet stressed that this takes place within the framework of complete guarantee of the rights of banks and full protection through full commitment to pay.
The report said that banks are ready to renegotiate about scheduling loans in secure manner and facilities which would ensure payment as regards faltering individuals and companies within the framework of full guarantee that the banking sector will get back its full rights and, at the same time, restoration of production activity.
The cabinet pointed out that it was important to begin to repay faltering debts and reschedule them to companies of the public Business Sector because debts due to the banking sector from these companies represent 60 percent of faltering.
The Prime Minister pointed out that the Central Bank of Egypt and all banks have fixed in a clear manner the number of those faltering in repayment.
Each bank has laid down guidelines suitable to it to ensure repayment.
The Cabinet discussed a working paper on preparations to hold the conference of donor states and agencies to Egypt at Sharm Al Sheikh next month.
It discussed the government's policy and the axes which will be presented at the conference.
Minister of Information Safwat Al Sherif said that the Cabinet approved a communications bill in its final form prior to submitting it to the President of the Republic and referring it to the People's Assembly.
The Minister of Defence, Interior and Information made some remarks on some articles of the bill in its final form.
The Minister of Information said that the cabinet approved a draft Republican decree of a bill to amend the first item of Article 20 of the Investment Guarantee and Incentive Law issued by Law No. 8 for 1997.
The proposed amendment provides exemption from the stamp tax and fees of the notary department contracts setting up companies and establishments and contracts of loans and mortgage.
Exemption will be for five years of the date of registration in the Trade Register. The bill will be referred to the People's Assembly.
The Cabinet agreed to go ahead to take legislative measures to continue to apply, up to 2004 , the general evaluation of the rent of buildings which was used as a basis for the tax on buildings in accordance with Law 23 for 1998.