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Egyptian financial experts urge foreign investment, not loans, in uncertain climate

The latest report from the int'l finance institution said that political disorder in Egypt led to the withdrawal of $16 b dollars of foreign capital.
28.07.11 | Source: Youm7

The latest report from the international finance institution said that political disorder in Egypt led to the withdrawal of $16 billion dollars of foreign capital since the beginning of this year.

The report expected the withdrawal in capital flows to Egypt in 2011 of U.S. $17 billion. It said Egypt’s economy is characterized by variety and activity, unlike Eastern and Central European countries in the early 1990s, and that the economy significantly developed in the period before the revolution.

The report called on the new government in Egypt to renew its commitment to improving the business environment and modifying the fiscal deficit, which will lead to the continuity of rapid development rates. The report criticized western actions to help the Egyptian economy, saying that what the big countries have done, especially the United States and the European Union and other international forces, is not enough to boost the Egyptian economy and support reforms, which in turn will support the process of political transition to democracy.

The report called on the international forces to reinforce trade and the private investments in Egypt, to direct assistance to encourage direct investment through the private sector, and the participation between both sectors, private and public, in infrastructure projects, which are more important to the Egyptian economy than facilitating loans from international institutions.

The economic expert Ahmed el-Ghandor said the resolution of the investigation with members of the former regime reflects confidence in the Egyptian economy. He described this resolution as a start to consolidating the rule of law and building democracy, which encourages the arrival of foreign capital. He pointed out that this should be quick to refresh economic activity in this difficult transition period.

El-Ghandor said the repercussions of the revolution on economic activity are normal, but what is important is to bring the situation back to its normal state, especially the sources of foreign change in tourism and exports.

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