Archive for social development

Prime Minister: IMF loan must support Egypt’s poor

by admin
November 8th, 2012

Egypt will not accept a US$4.8 billion International Monetary Fund loan unless it is consistent with economic reform policies that support Egypt’s poor, Prime Minister Hesham Qandil said Thursday on his Twitter account.

Egypt is negotiating with the IMF for a much-needed loan to reduce its budget deficit, provided the government secures popular consensus on the loan and develops an overall economic reform plan.

Cabinet spokesperson Alaa al-Hadidy said Thursday the two sides had made progress in the negotiations by agreeing on increasing resources for social development, boosting foreign and domestic investment and supporting foreign reserves.

“We might reach a tentative agreement soon,” he said.

An IMF technical team has been in Cairo since 31 October to negotiate the loan and the talks are expected to last two weeks, according to Reuters.

Edited translation from Al-Masry Al-Youm

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Categories Egypt, Egypt Top Stories
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Finance Minister: Budget will bear cost of raise in salaries and pensions

by admin
July 2nd, 2012

Finance Minister Momtaz al-Saeed has said that the state budget will bear the cost of the social allowance for salaries of government employees and for both civilian and military pensions, amounting to LE3.5 billion as of July.

Earlier, President Mohamed Morsy ordered a 15 percent increase in the pensions of the armed forces instead of the 10 percent that was approved by the Cabinet on Sunday, thereby putting them on par with government employees, whose pay increase he approved on Sunday.

Acting presidential spokesperson Yasser Ali explained that the increase would be paid from domestic resources and not external borrowing.

Saeed added that the ministry is also studying ways to carry out the president’s decision to increase the social security pension from LE200 to LE300 per month, depending on the number of family members.

He also said the Supreme Council of the Armed Forces has endorsed the state budget for the 2012/13 fiscal year, the laws for the economic and social development plans and the budget allocations for 50 economic authorities in addition to the Military Production Authority.

He added that government spending and subsidies of petroleum products would be cut by LE25 billion without affecting low-income brackets, denying the possibility of raising fuel prices or imposing new taxes.

“The president has asked the government to focus for the first 100 days on traffic, garbage, security and bread supply,” Saeed said, pointing out that those would not need extra funding. “They need new administrative procedures and the enforcement of the law.”

He also said that 400,000 temporary employees would be granted full time contracts to be financed from special funds.

On the US$3.2 billion loan from the International Monetary Fund, the minister said it was postponed until a new civilian government is formed. “But the terms and procedures are agreed upon,” he said.

Morsy has also instructed the current government and governors to continue until a new government is formed, acting presidential spokesperson Yasser Ali said.

“This does not mean the new government would be delayed,” said Ali. “The president is keen on achieving stability and restoring the economy rapidly.”

Edited translation from Al-Masry Al-Youm

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Categories Egypt Economy
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Demonstrations brought growth rate down, says Abouelnaga

by admin
June 27th, 2012

Planning and International Cooperation Minister Fayza Abouelnaga has said that instability and the mounting labor demonstrations represented a huge challenge for the government and led to a decline in the economic growth rate to 4.2 percent.

She added that the government made great efforts to overcome this problem and developed a pilot plan for economic and social development for the next ten years based on the large potential of the Egyptian economy, “although it is only an interim government.”

“The plan concentrates on promising areas like Port Said, Sinai and the New Valley, expanding agriculture and developing human resources,” she said. “It also fights poverty, a main cause of the revolution.”

“It also aims to double national income in ten years,” she pointed out.

Edited translation from MENA

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Categories Egypt Economy
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