Stable toll

THE SUEZ Canal Authority (SCA) will not be raising its tolls in 2003, for the seventh year running. The announcement was made this week by SCA Chairman Ahmed Fadel, who said the decision was taken due to the global economic slowdown.

The SCA has managed to make sizeable revenues, nevertheless, reaching $1.955 billion in 2002 and $1.9 billion the year before. The revenue increase is attributed to the development of the canal to allow larger vessels to pass through. The authority is currently working on deepening the canal's draught from 62 feet to 66 feet.

Banking reform underway

PRESIDENT Hosni Mubarak is to refer the new draft unified banking law to the Shura and People's Assemblies within the coming days. The draft law was presented by the cabinet to the president, subsequent to its approval by the government. Extensive meetings had been held between the cabinet's economic group and banking sector representatives to discuss the draft law, which the government says will be a first step towards comprehensive reform of the country's banking sector.

The law, which places the Central Bank of Egypt (CBE) under the jurisdiction of the presidency, aims to consolidate the bank's independence, increase its capitalisation and reinforce its ability to formulate monetary, fiscal and banking sector policies.

The step comes in the wake of the much-publicised cases of bad loans, in which a number of major businessmen have been either prosecuted or indicted for defaulting on their bank loans.

Nearly all banking experts, however, have reservations about the proposed law. They are concerned that placing the CBE under the president's jurisdiction might undermine its autonomy rather than enhance it, especially since appointments to the boards of the CBE and public sector banks will be undertaken by the prime minister.

The issue of the CBE's autonomy has become a contentious one, with allegations that political directives issued by the government have for long interfered with the CBE's ability to supervise the banks, as well as administer monetary policy in a manner that would counter the rising pressure on the exchange rate.

A fabric affair

LEADING manufacturers and exporters of upholstery and other home textiles in Egypt will be participating at the world's leading trade fair, Heimtextil, in Frankfurt, for the fifth year running.

Egypt's new cotton logo will be launched at the event scheduled for 8 to 11 January.

The participation of Egyptian companies is being organised by the Egyptian Home Textile Commodity Council in cooperation with the fairs department of the German Arab Chamber of Commerce and the Management of German and International Conferences and Exhibitions (MGICX).

Linking up for gas

OPERATION of the first phase of the Arab natural gas pipeline is set for June 2003. The extension of a natural gas pipeline from Egypt to Jordan is part of a larger $1 billion scheme to establish a natural gas grid between four Arab countries -- Egypt, Jordan, Syria and Lebanon. The announcement was made in Cairo this week by Egyptian Oil Minister Sameh Fahmy as he met with his Jordanian, Lebanese and Syrian counterparts.

The four oil and energy ministers also signed an agreement to establish the Arab Gas Authority, headquartered in Beirut, and the Arab Gas Transport and Marketing Company, based in Damascus. The four partners are to have joint ownership of the two new bodies.

The pipeline is scheduled to be connected from Jordan to Syria by 2005 and later extended to Lebanon. Other Arab countries may join the project pending approval of the four founding countries.

The project will support Egypt's plans to boost its natural gas exports. Egypt's natural gas reserves are currently estimated at over 1.5 million cubic metres.