14 - 20 December 2000
Issue No.512
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Al-Ahram Weekly On-line 14 - 20 December 2000 Issue No.512 |
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| Published in Cairo by AL-AHRAM established in 1875 | Current issue | Previous issue | Site map | ||
Supportive policies
The stock exchange has been developed to perform its role in line with the government's policy of encouraging strong (financial) institutions run by qualified, well-educated individuals using advanced technologies. As a result, the stock exchange has operated, during the past two years, in a manner investors can depend on.
Building on this success, the government will undertake an important step to reinforce the bourse's supervisory powers when it presents a draft for a new capital market law to parliament.
This draft will address corporate governance, disclosure and insider trading and will invest the Capital Market Authority with more autonomy to implement regulations and protect the market. Also on the government's agenda is the mortgage law and regulations designed to encourage the use of private and public pension funds as sources of finance.
Already the government has taken steps to stabilise the exchange rate. The Central Bank of Egypt, in concert with the Capital Market Authority, the Misr Company for Clearance and Settlement and Central Depository, as well as the Egyptian Stock Exchange, have provided for a mechanism enabling foreign investors to swiftly transfer their earnings abroad. This mechanism is key to putting the Egyptian Stock Exchange on the map for foreign investors and should increase the bourse's liquidity.
Other positive actions being taken by the government are the payment of its debts to companies and putting in place incentives to encourage institutional investors to participate in the capital market.
The impending eurobond launch by the government is also noteworthy. This should provide Egyptian companies, most notably those in the telecommunications and electricity sectors, with a benchmark when they issue bonds on international markets.
Head of the Cairo and Alexandria Stock Exchanges Sameh El-Torgoman, speaking of current government policies and their impact on the bourse.
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