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Al-Ahram Weekly On-line 19 - 25 October 2000 Issue No. 504 
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Published in Cairo by AL-AHRAM established in 1875 |
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Al-Ahram Weekly On-line 19 - 25 October 2000 Issue No. 504
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| Published in Cairo by AL-AHRAM established in 1875 |
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Egypt Elections Palestine International Economy Opinion Culture Focus Features Travel Sports Profile People Time Out Chronicles Cartoons Letters Rolling on in
US ECONOMIC assistance to Egypt will remain high on the agenda of the US Agency for International Development, US officials say, even though it is being gradually reduced over a 10-year period. According to John Wilkinson, deputy assistant administrator of USAID for Asia and the Near East, who was in Cairo this month, economic assistance to Egypt will decrease to approximately US$400 million by the year 2009. This figure is approximately half of what it has been in recent years.In spite of this decrease, Egypt will remain the third largest recipient of such aid. In comparison, Israel is not slated to receive any economic assistance in 2009. Wilkinson said that the Egyptian-US relationship "is sufficiently important and significant" and that he does not forecast any change in what has been "a very productive partnership."
While in Egypt, Wilkinson visited various USAID-financed projects in Cairo and Alexandria to review the progress of joint efforts in development. Wilkinson was accompanied on his tour by the new USAID-Egypt mission director Willard Pearson. Pearson, who assumed his post only six weeks ago, has a mandate to oversee the implementation of the new USAID strategy which is moving away from the traditional financing of infrastructure projects towards encouraging trade and investment. According to Wilkinson, this new strategy does not imply that any projects will be terminated. "Projects will continue until their normal planned termination point. [But this also means] that other projects will be brought into the portfolio in agreement with the Egyptian government."
Under the new strategy more emphasis will be placed on education, human resource development and improving information technology in Egypt.
... and rolling on out
PRIME Minister Atef Ebeid stated this week that there are no restrictions on any US dollar deposits or withdrawals from Egyptian banks. Ebeid's statement was made following recommendations by Central Bank officials late last week that individuals should not be permitted to withdraw more than US$20,000 per day from their personal accounts.Prior to Ebeid's statement, Ismail Hassan, Central Bank of Egypt governor, clarified his recommendation saying that it should not be interpreted as a monetary restriction.
Ebeid's remarks followed the announcement of a number of recommendations by CBE to fine-tune the regulations governing the currency exchange market. According to Hassan, CBE has recommended that there be no restrictions on the transfer abroad of revenues from direct or indirect investments in Egypt. The banking sector, said Hassan, is committed to making prompt transfers. He also said that banks should readily open letters of credit for foreign currency and provide clients with the foreign exchange needed to settle any debts.
Other recommendations made by Hassan include adopting measures to close the gap between the exchange rates at banks and those at foreign exchange companies and that between the buying and selling prices.
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