Archive for Prime Minister Hesham Qandil

PM: Egyptian pound to improve against dollar over next period

by admin
January 1st, 2013

The Egyptian pound will improve its standing against the US dollar after being encouraged by political and economic stability over the coming period, Prime Minister Hesham Qandil said Tuesday.

The Egyptian currency had made a record drop earlier this week against the US dollar amid rising political turmoil, and as the Central Bank of Egypt adopted a new mechanism that seeks to maintain foreign reserves, which have also hit a record low.

“Soon, we will see the US dollar falling to the Egyptian pound,” Qandil told reporters.

A dollar currently sells for LE6.37. The drop means the CBE has allowed the local currency to decrease by nearly 3 percent over the past two days, having spent more than half of foreign reserves to support the currency since a popular uprising deposed former president Hosni Mubarak two years ago.

“The Central Bank is, indeed, responsible for the exchange market, and the government does not intervene in its works. The deteriorating situation over the past period has helped stabilize the rate of exchange,” the prime minister said.

Egypt’s foreign reserves sagged by US448 billion in November to nearly 15 billion, in what the Central Bank described as a critical drop.

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Brotherhood denies nominating Shater for prime minister

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December 31st, 2012

The Muslim Brotherhood does not know who is campaigning on the Internet to nominate the group's deputy supreme guide, Khairat al-Shater, for prime minister, the Brotherhood's secretary general said, denying that it could be the group's youth.

"It is up to the president to decide on this," Mahmoud Hussein told Al-Masry Al-Youm on Monday, adding, "and we will support him."

A Facebook group campaigning for Shater's nomination said Friday that its members are contacting political figures to support their demand.

Hussein added that the group objects to certain ministers in Prime Minister Hesham Qandil's Cabinet, but refuses to change it fully, as it is an interim government.

In a related development, sources said negotiations are under way with Omar al-Sheikh, chairman of Telecom Egypt, to take over as communications minister, succeeding Hany Mahmoud, who has resigned. Atef Helmy, former president of Oracle, declined the position.

They also said Ahmed al-Rokaiby is about to accept the post of supply and internal trade minister.

Meanwhile, a Cabinet source said the president would soon announce the reshuffle.

President Mohamed Morsy revealed Wednesday his plans for a Cabinet reshuffle.

Morsy, in a televised speech on the adoption of the country's new Constitution, said, "I asked Qandil and consulted with him to make appropriate ministerial reshuffles suitable for [this] stage, to face all problems — large and small problems".

Edited translation from Al-Masry Al-Youm

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Agency: Egypt budget deficit expected to widen to LE200 bn

by admin
December 31st, 2012

Egypt's budget deficit in the year to end-June 2013 could widen by 50 percent from the original forecast made in July, according to a figure released by the planning minister Monday.

"The budget deficit is expected to rise to LE200 billion in the current fiscal year unless strict economic policies are put in place to confront it," the state news agency quoted Ashraf al-Araby as saying Monday.

The 2012/13 budget released in July had forecast a deficit of LE135 billion compared to an actual deficit of LE166.7 billion for the previous year. Economists at the time said that forecast was optimistic.

President Mohamed Morsy earlier this month suspended a series of planned tax increases as the country prepared for a referendum on a contentious new constitution, which was passed on 22 December.

The unpopular measures were deemed necessary to secure US$4.8 billion Egypt is seeking from the International Monetary Fund, which wants Egypt to rein in its deficit.

The government said last week it would not implement the measures for at least two more weeks to give it time to explain them to different parts of society.

Prime Minister Hesham Qandil said Sunday that he expected talks with the IMF to resume in January.

Araby predicted in November that this year's deficit would be 10.4 percent of gross domestic product, without stating the figure in pounds, up from the original forecast of 8 percent.

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Categories Egypt Economy
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State budget suffers incurable disease, says finance minister

by admin
December 31st, 2012

 

The state budget suffers from an incurable disease, with resources only covering 60 percent of public expenditures, state-owned Nile News quoted Finance Minister Momtaz al-Saeed as saying Sunday.

Government wages account for 25 percent of the budget, debt interests 25 percent, subsidies 27 percent and public investment 11 percent, he said during a press conference at the General Federation of Chambers of Commerce.

Egypt needs US$14.5 billion to offset its budget deficit and the public debt, he said. Foreign reserves  dropped from US$25 billion to US$15 billion in November due to the country's instability and the economy sustained an opportunity loss of US$20 billion due to investment concerns and declining domestic and foreign tourism, according to the minister.

He cited potential solutions of cutting expenditures by reducing wages or introducing a progressive tax system, which he said may not be appropriate at this time.  Borrowing and rationalizing subsidies, especially the 40 percent of subsidies he estimated go to those who don't need them, could also help ease the fiscal crisis without hurting the poor, he said.

Domestic and foreign debts amount to LE1.5 trillion, a burden he said would fall to future generations.

With negotiations to close a $4.8 billion International Monetary Fund expected to resume in January, Saeed say closing the deal would prove that the local economy is able to attract investment.

Prime Minister Hesham Qandil also said Sunday that the budget deficit is one of the biggest challenges facing the government, describing the economic situation as "critical," but also saying the country is not on the verge of bankruptcy.  

 

He said that the Cabinet would quickly take measures to address high unemployment and the gaping budget deficit, and promised to provide new job opportunities and improve the investment climate.

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FJP nominates three ministers for new Cabinet, source says

by admin
December 30th, 2012

 

Less than a week after touting the independence of the Cabinet and state institutions, the Freedom and Justice Party is jockeying for places in an impending Cabinet reshuffle. 
 
The party had initially nominated eight ministers, but eventually settled for three: Bassem Ouda, chairman of the party’s committee on energy, for the post of petroleum minister, Abdallah Shehata, chairman of the economic committee, for finance minister and Reda Agag, the president’s adviser for commodity supply, for minister of supply and social affairs, according to an anonymous party source.
 
The same FJP source expected the reshuffle to be announced within hours, and also said non-party member Hafez Salmawy, the director of the Electric Utility Regulatory and Consumer Protection Authority, would be tapped for minister of electricity.
 
Party leader Ahmed Ibrahim said the FJP seeks to put its members atop the ministries of local development, economic development, supply, and petroleum.
 
“Finance Minister Momtaz al-Saeed wants to quit for health reasons,” Ibrahim said, although Saeed has denied this on several occasions.
 
Amid much speculation on the reshuffle, Prime Minister Hesham Qandil said Sunday he was coordinating with President Mohamed Morsy to form a new Cabinet. He did not say whether that would include his own replacement, although anonymous FJP sources also said Sunday party has nominated Muslim Brotherhood Deputy Supreme Guide Khairat al-Shater for prime minister and is considering FJP President Saad al-Katatny as a backup. 
 

Just last week the party's media adviser Murad Ali denied reports the party was holding internal talks ove a reshuffle. The party does not interfere with Cabinet business and believes states bodies should be independent, he said.

Edited translation from Al-Masry Al-Youm

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Egypt not on verge of bankruptcy, says PM

by admin
December 30th, 2012

Prime Minister Hesham Qandil said Sunday that although the country's economic situation is "difficult and critical," the country is not going bankrupt.

“Countries don’t go bankrupt, but only companies do,” Qandil said at a press conference.

He said that the Cabinet would quickly take measures to address major economic challenges such as high unemployment and the gaping budget deficit, and promised to provide new job opportunities and improve the investment climate.

“The recent political crisis the country has been through [has] negatively affected the economy, tourism and foreign investments,” he added.

Qandil said that the budget deficit is one of the biggest challenges facing the government, adding that it will be resolved through increasing state profits, acquiring loans, reforming subsidies and fighting corruption.

The deficit is estimated at LE200 billion (US$27.5 billion).

Qandil said the Cabinet would hold talks with International Monetary Fund officials in January over the $4.8 billion loan that the government and the IMF reached an agreement on in November. The government requested a delay in final approval of the loan earlier this month during the unrest sparked by President Mohamed Morsy's controversial 22 November decree.

He said that the loan’s value is in the confidence boost it will give to the economy, not in the loan's amount, which will not cover the deficit.
 

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PM meets with Brotherhood, Salafi figures ahead of Cabinet reshuffle

by admin
December 28th, 2012

Prime Minister Hesham Qandil has begun consultations regarding the forthcoming Cabinet reshuffle. Eight new ministers are expected to be appointed following the successive resignation of several members of the Cabinet.

The reshuffle will most likely include the ministries of transport, local development, supply, electricity, petrol, communications, finance and legal affairs, a high-level Cabinet source told Al-Masry Al-Youm.

Qandil is to submit his nominations to President Mohamed Morsy for approval in the coming week. Nominations are expected to include members of the Freedom and Justice Party, and the Muslim Brotherhood’s guidance bureau is holding discussions on this matter.

A Brotherhood source said the group almost unanimously agreed to nominate Abdallah Shehata, the head of the FJP’s economic committee, as finance minister. Nour Party Secretary General Galal al-Morrah and Nour Party deputy head Sayed Mostafa are both also expected to receive nominations to the Cabinet. The three potential candidates all met with Qandil on Thursday.

Morrah told Al-Masry Al-Youm that he met with Qandil and Mostafa to discuss the current political and economic situation, as well as the nominations for the Cabinet. The Nour Party has nominated “a large number of its members to the new Cabinet, and it is in touch with the guidance bureau of the Brotherhood on this issue,” he added.

Several party leaders have objected to Qandil staying on as prime minister in the face of Egypt’s worsening economic crisis, and have called on Morsy to replace him with an expert in economics.

The Qandil Cabinet has not provided a clear plan to address the country’s economic decline and ongoing labor unrest, and has resorted to the former regime’s methods of borrowing domestically and internationally as a quick fix for cash flow problems, said Constitution Party deputy head Ahmed al-Bora’ei.

Hussein Zayed, the Shura Council MP for the Wasat Party, issued a press release on Thursday saying the party was shocked that Qandil had been entrusted with forming a new Cabinet.

The Wasat Party has objected to Qandil’s appointment as prime minister since the first day, the statement added, claiming that he was a non-politicized figure unfit for the position. Qandil’s Cabinet failed miserably in managing the country and was virtually absent during the violent political turmoil of the past two months, Zayed claimed.

Free Egyptians Party leader Mahmoud al-Alayly said the party had not received any communication on the nomination of members for the Cabinet reshuffle, but that the party would refuse any offers of positions in the Cabinet.

The president's insistence on asking Qandil to reshuffle the Cabinet is a sign of stubbornness against opposition forces, which demanded the dismissal of the Cabinet for its lack of political or economic vision, he added.

Edited translation from Al-Masry Al-Youm

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Cabinet spokesperson: PM to resign after parliamentary elections

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December 27th, 2012

Prime Minister Hesham Qandil plans to resign immediately after the formation of the new Parliament, said cabinet spokesperson Alaa al-Hadidy.

 “But the president has the right to reject the resignation and keep him in office,” he said.

Hadidy also said the prime minister has not yet decided on whether or not to accept the resignation of Parliamentary Affairs Minister Mohamed Mahsoub, which he submitted on Thursday. Mahsoub said he resigned in protest against the Cabinet’s policies.

The next Cabinet reshuffle, recently promised by President Mohamed Morsy, would not take into account the media’s criticism of certain ministers or public figures, Hadidy added.

 “As the posts for transport minister and communications minister are vacant, President Morsy decided to make changes in other ministries as well,” he explained.

Morsy said in a speech on Wednesday commemorating the approval of the Constitution that Qandil would be the one to decide on what changes to make in the Cabinet, according to the needs of the current period.

The reshuffle would include the ministries of local development, supply and internal trade, electricity, petroleum, telecommunications, transportation, finance and parliamentary affairs.

Hadidy said Qandil would make his recommendations to the president sometime next week.

Edited translation from Al-Masry Al-Youm

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Morsy announces Cabinet reshuffle

by admin
December 26th, 2012

In a televised speech, President Mohamed Morsy spoke on Wednesday, saying he is planning for a Cabinet reshuffles of the government of Prime Minister Hesham Qandil, who took office in August.

Morsy said, in a televised speech on the occasion of the adoption of the country's new Constitution, "I asked Qandil and consulted with him to make appropriate ministerial reshuffles suitable for [this] stage to face all problems, large and small problems."

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Communications minister resigns

by admin
December 26th, 2012

Communications and Information Technology Minister Hany Mahmoud has announced that he submitted his resignation Tuesday and Prime Minister Hesham Qandil accepted it.  

“After 30 years of working at international companies, I couldn’t cope with government culture, especially under the current circumstances. Therefore, I submitted my resignation more than a month ago.” Mahmoud posted on his Facebook account. “I will continue working until a new minister is selected.”

“I’d like to thank Hesham Qandil for understanding the reasons for my resignation,” he added, wishing the best for the ministry.

“I will serve the country, but from outside the governmental framework,” he said. “I don’t regret accepting the ministerial position, and I was honored to attempt it. I took the post for Egypt and I left it for Egypt.

Edited translation from MENA
 

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